Question 1: HR Strategy and Human Capital Reporting

The authors of this article analyze the creation of reporting standards on human capital incomes that are being led by Sustainability Accounting Standards Board (SASB) in America and International Integrated Reporting Council (IIRC) across the globe. According to the authors having high standards presents an excellent opportunity to human resource. Higher standards for reporting human capital will offer fundamental opportunities to human resource regardless of whether that reporting is for internal or external stakeholders (Bassi, Creelman & Lambert, 2015). This is through allowing human resource in demonstrating its contribution by playing a significant role in shaping values creation in an organization. Nevertheless, there exist some threats and risks to organizations if human resource is not prepared. If the human resource is not a major player in corporate reporting and has little or no knowledge of the upcoming standards, then it is at a riskier position of failing.

Another threat to the human resource will exist if a human resource has un-integrated and patchy analytics and information systems. As such, organizations must build awareness that a movement is to take place and ensure that stakeholders are in full awareness of the opportunities and risks too (Bassi, Creelman & Lambert, 2015).Google, for instance, has been rated as the best company to work for. This is because the company has proactively aligned itself with the proposed standards of human capital reporting. Workers are given an opportunity for self-development and professionalism.

Question 2: Human Capital Reporting

Human capital reporting has several benefits. Human capital reporting will help improve transparency of a company. Additionally, it would contribute to improving the ability of a company to control its objectives. The fact that information availability is the major requirement of making sound decisions, human capital reporting would strengthen the decisions made by the management (Gamerschlag & Moeller, 2011). More so, it would increase the quality of these decisions. To benefit from human capital reporting, there is need to improve the external and internal factors within an organization. External factors describe relational capital while internal factors describe the structural capital. In this respect, a company must endeavor to align itself with the emerging human capital standards.

Other than these benefits, it is possible to make an identification of additional human capital reporting standards between the various factor levels. Human capital reporting can influence the financial performance of a company positively (Gamerschlag & Moeller, 2011).By being able to utilize these opportunities that human capital reporting represents, Google has been able to increase its financial performance over the years. Additionally, the company has been able to increase its control over objectives, and as a result, it has been able to stand out as it values its workers as the greatest asset.

References

Bassi, L., Creelman, D., & Lambert, A. (2015). Advancing the HR profession: consistent standards in reporting sustainable human capital outcomes. People and Strategy, 38(4), 71.

Gamerschlag, R., & Moeller, K. (2011). The positive effects of human capital reporting. Corporate Reputation Review, 14(2), 145-155.

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