October 2017
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Study Finds Human Capital Metrics Increasingly Important to Investors, Senior Leadership

Tuesday, October 24, 2017

According to a new report from researchers at Harvard Law, human capital metrics are increasingly being collected by companies across the globe. The report, titled Corporate Disclosure of Human Capital Metrics, notes that investors are becoming increasingly interested in human capital metrics, as it’s becoming well understood that a sustainable, engaged workforce is critical to a company’s overall success. “The recent heightened interest in human capital and human capital reporting is part of a fundamental rethinking of how organizational value and social impact should be understood and evaluated,” the authors noted in the study introduction. “Traditional measures of organizational value and social impact are no longer valid in the age of Uber, Airbnb, and disruptive thinking.” The report added that management and investors alike want greater clarity concerning a company’s workforce and the relationships among the people there. “Increased focus on linking human capital performance indicators to outcomes and impacts allows management teams to make informed decisions on strategic options and tradeoffs and key stakeholders to better evaluate the value of an organization’s social efforts,” according to the study.


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