The Society for Human Resource Management’s (SHRM’s) proposed standard for what companies should disclose about their human capital has many critics, but support is building as well. Both CFO’s and equity analysts are stating their opinions and giving the proposed standard mixed reviews.
“The public disclosure of human capital information should not be pursued,” says Pete Hastings, finance chief at ISR Group in an interview with CFO.com. “The effort required to pull together meaningful data will waste the time of very busy people. These metrics add nothing to the bottom line.”
Pete has a good point – when referring to traditional separate integrated HRIS and Financials Systems. However, Workday’s “unified” application architecture means that all the data needed for the majority of disclosures proposed is in one system, accessible by one reporting toolset. “Worktags” can be applied to spend transactions, facilitating the ability to very quickly report on the proposed disclosure items. There are not separate applications, or even separate “integrated” modules. The effort of extracting queries from a HRMS and a separate Financial application are no longer necessary when utilizing Workday software.
The committee’s work of taking a leadership role in providing further transparency (our Core Value #9) in financial reporting and getting closer to being able to identify the true financial value of human capital should be applauded. We are proud to represent Workday in promoting an efficient system architecture to make the “effort required to pull together meaningful data” a thing of the past.
For more on measuring the Value of Human Capital, see the Workday video at http://www.peoplearethenewbottomline.com/.