At the heart of human capital management is how a company motivates and invests in its workforce. It recognizes that human capital is a critical asset in driving long-term value and that there’s a clear correlation between human capital management and return on investment. A few decades ago, the hot boardroom topics were profit and loss and balance sheet centric, but there’s been a shift to looking at how human capital management fuels long-term business value.
While interest in human capital management certainly isn’t new, events in 2020 and 2021 have had a profound impact on corporate governance and responsibility. As the economy reopens, many CEOs see this as an opportune time to reevaluate their business vision, mission, and purpose; how they will spearhead an equitable and inclusive pandemic recovery; and the legacy they want to leave with the world.
How Company Values Are Shifting
Beyond Physical Health to Financial Health
Companies are making workers’ financial security and health a C-suite and investor priority. Research shows that improving workers’ financial wellness benefits not only the workers themselves, but also business outcomes.
Accelerating Diversity, Equity, and Inclusion Initiatives
Companies are partnering with their workforces to create employee resource groups around key DEI topics to engage in career development, events, and volunteerism. These efforts may help attract and motivate talent and are often noted by the investment community.
CEOs are Being Held to a Higher Standard
The last year has emphasized reliance on leadership that sets positive and realistic goals. Whether its talent attraction, navigating ESG matters, or directing a business strategy, CEOs are being watched closely by investors and other stakeholders.