When the U.S. Securities and Exchange Commission (SEC) amended its 10-K human capital management (HCM) disclosure requirement in 2020, the ostensible goal was to generate more insight into how companies approach, measure, and assess the contributions HCM makes to their overall strategy and performance. Put in more simple terms, how does a company’s talent and investment in that talent contribute to its overall success?
But what actually happened is that the revised disclosures revealed that many companies put forth boilerplate statements of goodwill, but few offered any tangible insight, underscoring why companies may need more guidance around how to actually invest in talent, especially around data collection and tracking.
