EY's "How the Governance of Human Capital and Talent is Shifting" reports the results of a robust fall 2019 EY/Corporate Board Member joint survey of 378 public company directors and associated firm insights on human capital management (HCM) oversight and related matters that reveal a number of areas of opportunity for boards, particularly for the post-pandemic future.
Among the many key takeaways:
Reporting to the board
- 40% said that HCM oversight is a focus of discussion at full board meetings regularly (e.g., at every board meeting); an additional 30% said the topic is considered in a more embedded way throughout numerous board discussions and decisions; and 31% said it is a focus of discussion at full board meetings on an ad hoc or as-needed basis.
- More than half (55%) of respondents reported that the company's CHRO or equivalent frequently reports on culture and talent-related metrics to the board; an additional 17% said these matters are frequently reported to the board, but only through management reports - not in person.
Board oversight structure
Board oversight of HCM issues is allocated as follows:
HCM disclosure - Just over half of respondent directors believe their companies' external communications to key stakeholders include communications around the organization’s human capital strategy and the stakeholder outcomes the strategy aims to deliver, which is a key area of interest for investors.
In addition to the report's inclusion of a list of thoughtful questions for the board to consider that may facilitate constructive dialogue on this topic in the boardroom, EY's "How boards can help a new normal for the workforce" identifies important pandemic transition and more forward-looking issues for the board's consideration across the areas of HCM, financial implications on the business, corporate strategy, and compliance and regulatory issues.
Access additional information & resources on our Human Capital/Workforce Management page. This post first appeared in the weekly Society Alert!