What talent means in the post-COVID-19 workplace
As companies look to reset their people strategies in response to the COVID-19 pandemic, they must grapple with the lack of adequate metrics for valuing talent and return on human capital investment. Such metrics matter for deepening stakeholder engagement and to help drive and track decision-making in companies under pressure to operate more efficiently and become more resilient.
Under current accounting systems, workforce investments are reported as a direct hit to earnings with no recognition of the value created, while reductions receive favourable treatment and are excluded from core earnings. This creates a perverse set of incentives that encourages management to reduce investment in the workforce and treat talent as disposal.
From this new publication, here are seven guiding principles to help organizations shift their thinking on how human capital is valued.