An organisation’s people are its unique resource. People can learn, develop and grow – they are the only part of a business that can improve itself and they are fundamental to creating value in organisations.
People measures, and human capital analytics which looks to measure the value of people’s knowledge, skills and abilities, can help organisations to understand how purposeful workforce investment can create and preserve this value, and in doing so, improve productivity, employee well-being and commitment, innovation and business performance.
Recent research from both the CIPD and the Office for National Statistics (ONS 2016) indicates an increasingly buoyant labour market in the UK. However, over half of the employers in the latest CIPD survey, investigating the state of the UK labour market, indicated that amongst over 1,000 employers, hiring difficulties are becoming more commonplace and what are termed as ‘hard-to-fill’ vacancies are also on the rise in many economic sectors.
Given this background, it is becoming increasingly important that organisations understand and report on their human capital (HC) assets in a transparent way to existing and prospective employees, shareholders, regulators and other interested parties.