November 12, 2003—Human capital management is set to be discussed seriously in the boardroom—which could in turn be good for a related discipline, facilities management.
Following recommendations made by the DTI-sponsored Accounting for People Taskforce, corporate annual reports will soon have to include detailed information about people, how they are managed and how their performance links to the bottom line.
The change, likely to take effect within the next two years, falls within a broader move to ensure companies demonstrate that they understand the factors that are material to corporate performance.
The taskforce was established in January this year after an earlier review found that few companies report meaningfully on human capital to their stakeholders, despite a strong link with profitability. Consultation with the private and public sectors, as well as unions, led to the current recommendations.
Under existing rules, reporting on people issues is voluntary, though it is scheduled to become compulsory by 2005.
DTI Minister Patricia Hewitt welcomed the recommendations and promised to consider how best to implement them.
“The best UK companies already understand that smart people management underpins their business performance strategy and overall success. Improving partnership in the workplace such as work-life balance policies, regular staff dialogue and promoting equal opportunities together with encouraging training and development, can help raise productivity,” Hewitt commented.
—Elliott Chase
Reprinted with permission; copyright 2003 i-FM
