ABSTRACT FROM THE JSFB. SUBSCRIBERS CAN READ THE FULL ARTICLE IN THE MAY 2014 EDITION

 If people are a firm’s “most important asset” – as CEOs repeatedly proclaim – why are they only reported as costs? What are the problems caused by this mismatch, and what would ameliorate them? In light of this, what actions can and should investors take? Although it’s encouraging that a growing number of firms are beginning to disclose more human capital metrics, it is clear that most of these disclosures fall short of providing a coherent view of what creates, limits or destroys value on the people side of the business.

Dr. Laurie Bassi is the Chief Executive Officer of McBassi & Company, a human capital analytics firm that helps clients achieve both sustainably profitable and enlightened management of employees. She is the co-author of “A smarter annual report – how companies are integrating financial and human capital reporting” (forthcoming) and “Good Company, Business Success in the Worthiness Era” (Berrett-Koehler, 2012).