HCMI paves the way to transparent annual reports with the Human Capital Disclosure Statement

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The Human Capital Disclosure Statement is a strategic, forward looking, insightful view into an organization’s most valuable asset: the workforce. It is a new tool that is available to the public for free.

Human Capital Management Institute (HCMI) looks to advance standards and productivity metrics in human capital analytics with the newly released Human Capital Disclosure Statement. “For the first time ever a simple form is available to organizations, investors, and the public yet provides a tremendous level of insight into human capital talent for the workforce. Now companies can definitively measure the value of their greatest asset, the workforce,” states Jeff Higgins, CEO and founder of HCMI. As a former CFO and HR executive himself, Mr. Higgins has dedicated years of research to advancing human capital measurement, showing the linkage to financial results and promoting the need for human capital standards.

There is near universal agreement that human capital has an impact on organizational success and financial results. On this broad strategic point the investment community, Boards of Directors, CEOs, CFOs, management, governments, Human Resources and workers themselves agree. There is also significant evidence supported by research showing that human capital impacts financial performance. The research is echoed by CEOs of leading global organizations who often say people are their most valuable assets and source of competitive advantage. However, all agreement ends with discussions of how to properly reflect the importance of human capital, typically in terms of reporting and disclosure.

Paving the way with a simple solution is the Human Capital Disclosure Statement pioneered by HCMI. The Human Capital Disclosure Statement is a strategic, forward looking, insightful view into an organization’s most valuable asset: the workforce. Each of the statement’s four sections provides both individual insights and contributes to a collective story about human capital talent. The sections of the Disclosure Statement were designed like traditional financial statements with specific form, flow, and function, telling a story about human capital that links to business and operational results. More importantly, this form includes a significant number of metrics enabling organizations and investors alike to gain tremendous insight into an organization’s productivity, effectiveness, and sustainability in managing human capital.

A few of the key questions this statement answers include:
1)    What is our workforce productivity? Is it improving? How do we compare to peers?
2)    Are leaders effectively managing human capital?
3)    Are we building, buying or renting talent to drive success?
4)    What percent of our workforce is customer-facing or revenue-generating? What is the trend?
5)    What is the marginal return of one dollar invested in workforce?

The disclosure Statement includes critical workforce productivity metrics such as Human Capital ROI and Total Cost of Workforce in a concise and easy to understand format enabling leading organizations and institutional investors to gain never before seen clarity and insight into human capital talent.

In an effort to promote standardization of human capital measures and disclosure, the newly released Disclosure Statement is available to the public for free. Visit the http://www.hcminst.com for more information.

About HCMI:
The Human Capital Management Institute was founded on the belief that organizations can and must find better ways of measuring their investments in human capital. HCMI strives to fundamentally change the way organizations make decisions about their workforce. HCMI’s vision of the future is one in which human capital measurement and information is as integral to business decision making as financial information is today. Serving global clients, HCMI delivers workforce intelligence training, assessments, consulting, and the world’s most advanced workforce analytics and workforce planning modeling tools (http://solveworkforce.hcminst.com).

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