The International Integrated Reporting Council responsible for developing a global <IR> framework has recognised MI approved, OMS LLP’s, work in its latest report on ‘The value of human capital reporting’ “Much human capital reporting currently focuses on inputs and activities, rather than on the outputs and outcomes. It is rare for companies to explicitly demonstrate how their human capital is contributing to value creation. However, some experimentation with reporting on outputs and outcomes is taking place.
For example, the OMS Human Capital Reporting Template © identifies “the critical questions that need answering” to reveal “underlying value and risk”7. The template “follows the principles of whole system thinking; recognizing that all organizational systems are inextricably bound up with human systems, which directly and indirectly influence performance, total value creation and operational risk”. The methodology encompasses talent attraction, acquisition, development, performance management
and retention and how that integrates with the other financial and management systems.
OMS stresses that all human capital data and information must be ‘material’ in showing
“a direct, causal connection to value creation (or loss) and decreased (or increased)