Rising numbers of mainstream investors are now requesting companies brief them on a raft of data about employees and how they are managed. Asking five questions
Sourced through Scoop.it from: www.cebglobal.com
Appeasing your investors is strenuous. They are human and thus usually fickle in their wants and needs. But luckily, you know both those, to make money. For that you must profit. To profit you must implement the right strategies. Some essential ones are talent acquisition and management. And nowadays, according to this article, investors wish to become more involved.
They have begun requesting knowledge on how the companies they invested in manage their workforce. This is human capital data. It also includes the talent level of each employee, team, and so on, the turnover rate, the management style, and how this all affects the numbers.
There is enough influence of this human capita data on profit that the Harvard Law School Pensions and Capital Stewardship Program review of 92 empirical studies (pdf) concluded that, “there is sufficient evidence of human capital materiality to financial performance to warrant inclusion in standard investment analysis.” Data like this will only make more investors request the human capital data. In fact, in 2016 61% of 1600 of the world’s largest companies discussed this with their investors, increasing by 13 percent from 2010. Just take this from the article.
“Charlie Crossley, a Project Officer at ShareAction, explained to CEB that his organization has seen this pattern first-hand. ‘We have noted significant appetite from investors to engage with companies on how they manage their people,’ he said. ‘This data is in demand for informing engagement, improving long-term understanding of companies, and ultimately integrating into investment decision-making. Investor, and regulatory, scrutiny is only set to increase,’ he added.”
Prepare your human capita data so you’ll have a better chance to get investors.