Human capital management: Tips for boards and human resource & compensation committees
Companies need to attract, engage, and develop different kinds of talent to support their business strategy and plan for future growth. Human capital management (HCM) can play a significant role in enhancing a company’s success and increasing shareholder value.
Recognizing the importance of this critical asset, investors expect boards to establish a positive “tone at the top” and oversee how companies support and develop their workforce.
This article provides tips to help boards and human resource & compensation committees (HRCCs) navigate their evolving HCM responsibilities, including working with management to: select HCM metrics that support the company’s strategy and decide whether to use them in incentive plans; ensure disclosures comply with SEC rules and tell the company’s story; understand shareholder and proxy advisor policies on HCM; work toward board and management diversity; and update governance documents.
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