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Press Release Detail 

One in four managers wants mandatory HCM reporting 12/07/2006

Introduction
One in four managers believes that reporting on human capital management (HCM) should be made mandatory, according to new research from Investors in People. The finding follows the Government's decision last year to scrap the Operating and Financial Review (OFR), which would have encouraged companies publicly to report information about their employees

Publication
The survey, conducted by Investors in People amongst organisations working with the Standard, also found that most organisations (60%) are already measuring their human capital in some way. In addition, interest in HCM has grown as the issue has become more prominent: over half (51%) of those measuring human capital have started to do so in the last two years; 31% said they have done so for over five years.

The majority of those surveyed (57%) also admitted that they do not currently publish any information about their employees publicly, for example in a company report or on a website. A lack of time or resources was cited as the primary reason for not reporting in this way, followed by worries about disclosing commercially sensitive data, and a perceived lack of relevant information.  

Commenting on the survey, Ruth Spellman, Chief Executive of Investors in People UK said,

"This survey suggests that measurement of human capital is becoming more and more common, but it also shows that there is some way to go. A majority of organisations are now collecting and analysing employee information to help them assess the value employees are delivering. Encouragingly, the remainder show some interest in following this lead.  

"It's also interesting to see that one in four managers supports mandatory reporting on human capital. However, employers should view HCM as much more than just a reporting mechanism as it can help employers identify strengths and weaknesses in the way they equip and support employees to make the contribution expected of them. It's a great way of aligning people development with business performance; employers that don't make this connection will fail to get the real business benefits HCM can deliver."

Investors in People has helped establish the Human Capital Management Standards Group, a cross-industry group seeking to progress work on the connection between human capital investment and business performance. Its aim is to establish a set of universal human capital metrics that can be used for external comparison of organisations, whatever their size or sector.

Notes to editors

The survey took place in May 2006 via a questionnaire of approximately 400 committed and recognised organisations who work with the Investors in People Standard.

Human Capital Management Standards Group Members

Tim Melville-Ross

Chairman

Former Chairman Investors in People UK

Ruth Spellman

Chief Executive

Investors in People UK

Richard Donkin

Columnist

Financial Times

Duncan Brown

Deputy Director General

Chartered Institute of Personnel and Development

John Cridland

Deputy Director General

Confederation of British Industry

Greg Aitken

Head of HR Research & Measurement

Royal Bank of Scotland

Richard Phelps

Consultant

PWC

Gary Browning

Chief Executive

Penna Consulting

Chris Bones

Principal

Henley Management School

John Wrighthouse

Head of Planning & Development

Nationwide

Sabri Challah

Partner

Deloittes

Alan Matcham

Director

Oracle Corporation

Steve Bevan

Director of Research

The Work Foundation

Petra Cook

Head of Policy

Chartered Management Institute

Professor Harry Scarborough

Principal

Warwick Business School

 

Human Capital Management Standards Group Associate Members

Chris Nutt

Chairman

Fissing

Nick Robins

Head of SRI Funds

Henderson Global Investments

David Fairhurst

Vice President

McDonalds

Sir Anthony Cleaver

Chairman

Council for Excellence in Leadership & Management

Chris Litheland

Human Resources Director

SAS Computing

Neil Roden

Group Director, Human Resources

Royal Bank of Scotland

Vicky Wright

Senior Consultant

Watson Wyatt

John Ingham

Consultant

PENNA

Tony Watson

Chief Executive

Hermes Fund Management

Mervyn Davies CBE

Chief Executive

Standard Chartered Bank

Peter Montagnon

Head of Investment Affairs

Association of British Insurers

Lord Leitch

Chairman

HM Treasury Review of Skills

Stephen O Keefe

Director

Financial Services Sector Council

Laurie Bassi

CEO

McBassi & Company Inc

 

Investors in People:

  • The Investors in People Standard provides a framework for improving business performance and competitiveness through good practice in human resource development.

 

  • An organisation that has achieved the Standard has been successful in adopting and maintaining its three fundamental principles: Plan - developing strategies to improve the performance of the organisation, from business goals to leadership strategies; Do - implementing those strategies, taking action to improve the performance of the organisation; Review - evaluating and adjusting those strategies, measuring their impact on the performance of the organisation.

 

  • The Investors in People Standard is promoted and developed by Investors in People UK - a public body whose main stakeholder is the Department for Education and Skills.

 

  • The Investors in People Standard is delivered by a partner network:

 

1. In England, the network of Investors in People Regional Quality Centres.

2. In Scotland, contact Scottish Enterprise (SE) or Highlands and Islands Enterprise (HIE) for details of the Investors in People Standard.

3. In Wales, the Business Skills Delivery Team at the Department for Education, Lifelong Learning and Skills, Welsh Assembly Government.

4. In Northern Ireland, the Department for Employment of Learning delivers the Investors in People Standard.

 

For further information please contact:

Investors in People is available for further comment. Please contact the Investors in People press office 020 7544 3118. 
For more information on Investors in People please visit www.investorsinpeople.co.uk


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