Or human capital management reporting is the provision of information on human resource management within company annual reports in order to provide a basis for informed investment decisions by investors. Human capital reporting can cover a broad range of topics, including the size and composition of the workforce, the quality of management, the level of investment in training and development, and benchmarking and other indicators that allow the quality of HR management to be assessed. In much of the prescriptive literature on human capital reporting, there is an emphasis on providing evidence that people management practices contribute directly to business performance (see conformist innovation). Research evidence indicates that human capital reporting is highly variable across UK companies and that many firms provide only basic information on HR practices. Although the HR profession has argued for its inclusion, human capital reporting is not a statutory requirement for large firms and is not mandatory in the regulations for Operating and Financial Review.
Subjects: Human Resource Management.