Originally published on 17 February 2022. Kept as written; the law it describes may have moved since.
The Run-Down: Investors are asking companies to provide more workforce data that can explain employers struggles with employee hiring and retention
- Two years into the pandemic and employers are still struggling to hire, and most importantly retain, qualified candidates
- Concerns have grown amongst investors, who oftentimes can’t access such information; forcing them to campaign for a mandatory reporting system
- Investors are calling for organizations to consistently report human asset data produced through a standardized measurement to allow for them to compare companies
- A study found out of the 100 largest companies in the U.S., 59% do not disclose the salaries and benefits given to employees and even more, 85% don’t disclose turnover rates
Why You Should Care:
As the pandemic continues to have an impact on the global economy and workforce, we will continue to see major changes in the way companies conduct their business. Due to the fluctuating, unpredictable nature of the effect the pandemic has had on the workforce, investors' guards are up when it comes to where they put their money. This is incredibly alarming, considering many businesses rely on investors to continue, and even begin, operating.
This story is indicative of two issues: 1) that investors are feeling less comfortable investing in organizations that are not forthcoming with workforce data and 2) that organizations are still struggling to hire and retain employees, causing many to wonder what exactly these businesses are offering to their biggest assets: their employees As a business owner, or even an employee, accountability, transparency, and integrity will be three key ideologies that can set you apart from other organizations in regards to both issues.
As investors have expressed, it is difficult to obtain information regarding a companies’ workforce data. This makes it less enticing for investors to continue supporting an organization they feel is hiding or misrepresenting important information. By valuing transparency and accountability and including workforce data in an accessible report, your organization has silently told investors what values you are aligned with, which will make them much more comfortable with investing in your business.
Similarly, continuing these values within the workplace culture is imperative. By prioritizing integrity-based business decisions, you will be more appealing to the employee market, attracting candidates that fit the role and will want to stay in it. As companies in every industry struggle with an employee shortage, set yourself apart and truly value the humans you work with through competitive salaries and benefits, and creating a general culture that exemplifies their worth.