The HCM Funnel: Board Considerations for Disclosures on Human Capital Management

Investor demands, societal pressures and competition for employees are pushing boards to be intentional about where and how they focus on human capital management (HCM). Leading companies view HCM as a value driver and strategic differentiator.

Boards should view HCM topics the same way they view other key strategic items — as an essential component of company oversight. But some companies are struggling to determine where to focus and how to drive real change in the organization. Many have expanded the purview of the compensation committee to include HCM metrics and some have renamed the committee to reflect this broader oversight. Additionally, increased disclosure requirements and expectations have raised the bar for clarity on how HCM ties to the business strategy. With the growing number of HCM measures, disclosure frameworks and investor perspectives, companies need to set priorities on their differentiators and areas where improvement will drive better business performance.

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About the Author(s)

Greg Arnold

Greg Arnold is a managing director of Semler Brossy.


Andrew Friedlander


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