The Investment Association is asking companies to report on the way they manage and value their staff for the benefit of shareholders.
The Human Capital Reporting project aims to show how businesses value their staff and highlight the benefits to investors of those companies.
Investment Association director of corporate governance and engagement Andrew Ninian says: “[The project] is about showing investors how companies manage their human capital. It is about asking companies to articulate better how they manage their employees and how they develop them.
“We also want to get the sense on how large their turnover is, how companies train people and how they make their staff productive.”
The project will launch on Friday, November 20.
Investment Association chair Helena Morrissey says: “Many companies say that their talent is their greatest asset and they invest significantly in their talent, but there isn’t really a framework for reporting on the value of that talent. That makes it difficult for all of us – including of course investors – to assess this vital aspect of a company’s future prospects.
“This Investment Association initiative has the goal of moving from talk to actions, and then from actions to results on human capital reporting.”