Employers urged to do it themselves

first_img Previous Article Next Article Related posts:No related photos. Comments are closed. Organisationsare being encouraged to come up with their own solutions to prove how their HR policiesaffect performance, by the woman leading the Accounting for People Task Force.Thetaskforce, which launches its consultation paper today, is to produce bestpractice guidance, enabling organisations to demonstrate the value of their HRpolicies.ChairDenise Kingsmill stressed the taskforce is not attempting to come up with a‘one-size fits all’ approach, but wants employers to come up with ways ofmeasuring human capital management (HCM) to suit their individual businesses. “Ithink businesses in this country can be pretty creative when they understandwhat is best for them and I hope they will figure out what is the best way ofdoing this,” she said.However,the document, based on the latest research on HCM and discussions with experts,does provide some suggestions for how companies can start to measure theeffectiveness of their people management. Theconsultation paper finds there are two main ways in which HCM can enhanceperformance. One is through raising the skills base of employees via appropriaterecruitment and retention, training and broad-based developmental activity; theother is by enhancing employee motivation and ability to use their skillsthrough measures such as the design of their reward system, participativeproblem-solving and team work.Theconsultation document also identifies the need for some standard reporting inareas such as workforce profile, labour management relations, retention,training, and remuneration.Consultationwill remain open to mid-July when the taskforce will start processingresponses. Kingsmill plans to report to trade and industry secretary PatriciaHewitt in October.Thesubsequent guidance will enable large employers to meet new performancereporting responsibilities under the forthcoming Companies Act.Thereports, termed Operating and Financial Reviews, are expected to be publishedalong with company annual reports.Organisationswill have a duty to report on all factors material to their future performance.However, Kingsmill emphasised that businesses will have the freedom to decidewhether these ‘factors’ include their people.”Itis up to each company to decide for themselves what they report on and if theythink people are material to their success. Obviously I think they are,”she said.Sendyour views to the Accounting for People Task Force, at Room 493, DTI, No 1,Victoria Street, London. SW1 0ET or by e-mail to: [email protected] Willmott and Quentin ReadeEmployers need to ask:1.      Do we believe our people and HCM practices have an impact onperformance?2.      Do we believe our board should try and understand the linkbetween these practices and performance to ensure our HCM strategy complementsand supports the business strategy?3.      How can we demonstrate to our own and our stakeholders’satisfaction that this is happening? Employers urged to do it themselvesOn 20 May 2003 in Personnel Todaylast_img read more