The Aim is to Improve Investor Decisions by forcing HR to focus on identifying and quantifying the impact and then publicly reporting each of its major human capital initiatives.
For companies, HR and recruitment up to the leadership team and board level: the declaration of the SEC is a game-changer.
Dr John Sullivan: "These new reporting requirements are designed so that external investors can better understand the value that is being added by the workforce and the HR function. And therefore, investors will be able to make more informed stock purchase decisions."
With common sense and in the interest of shareholders, one could never understand why companies do not place human capital at the centre of everything. The word HR describes the status quo best: human resource. Humans with a brain who are the sole initiator and creator in any organization are just a resource. We are still so far from unlocking the potential of employees in organizations.
It all starts with recruitment and is linked with the steps of employee appraisals. Do you think that this is a theory and hardly achievable? You will be surprised to see where you can start today and we show you how to get there.
But any organization, and Vice President, Hiring Manager, Recruitment or HR Manager and certainly any leadership team can bring about change today: the change to hiring performers - consistently.
From validated and best practices we created for you, a structure, easy to follow to hire performers - consistently at ease and with joy for all participants: recruiters, hiring managers, interviewers, candidates.
Relax, this is not a sales outreach. It is about a mindset that refers to whether you believe recruitment needs to follow a structure for sustained quality of hires and to serve as the driver for change in the value of human capital.
Let us check the mindset:
do you want your organization to hire performers - consistently?
If you want to hire performers, recruit like a performer.
You hire performers to have them achieve objectives.
Know the objectives.
And know exactly what you want the performers to do.
Don’t worry about the HOW, performers will figure this out.
That in itself requires a thought-through structure in recruitment.
That is what we mean when we say “If you want to hire performers, recruit like a performer”.
This structure is especially important for those who
Hire occasionally
who do not have a structure
and finally to all those who do not want to compromise on hiring performers.
If you expect to hire performers somehow, to use a laundry list of interview questions to identify performers, you do not see a need for a structure in recruitment and accept decisions based on bias and feelings instead of arguments and proof, then we share a different mindset of how to go about to position human capital as the main driver of value.
If you see the purpose of hiring in helping Hiring Managers achieve their numbers and see the purpose of an interview in predicting how well the candidate will achieve the objectives, then we share a mindset.
With this mindest, we invite you to explore with us the major difference you can make to the business by having your organization follow a structure in recruitment.
We are excited to show you how.
Contact us for a day and time for your convenience.
The source to this article is the SEC rule:
https://www.sec.gov/rules/final/2020/33-10825.pdf
In addition, we are happy to refer to Dr. John Sullivan blog outlining the consequences of SEC rule to companies.
Dr. John Sullivan: "The SEC now requires listed firms to report their human capital metrics publicly, so this topic should be our #1 HR issue. However, few in HR seem even to be aware of these new requirements. No less the tremendous impact that these new public reporting requirements will have. Already in effect, the new SEC reporting rules will force HR to focus on identifying, quantifying the impact, and then publicly reporting each of its major human capital initiatives.
The Goal Is To Improve Investor Decisions
These new reporting requirements are designed so that external investors can better understand the value that is being added by the workforce and the HR function. And therefore, investors will be able to make more informed stock purchase decisions. And one final result will be that obviously, companies with the strongest human capital initiatives and the best results will have their stock more highly recommended by financial analysts. And that will eventually raise your stock price.
The SEC has finally declared that “Human Capital is a primary driver of value.”
source: Dr. John Sullivan blog
