As COVID-19 has brought increased focus to workplace safety, employee pay and other human capital issues, a recent EY white paper provides insight from directors to assist with improved board oversight of human capital. The report’s findings are based on a director survey about governance of human capital. Although the report says most boards spend more time on talent strategy than they did just five years ago, it also identifies areas of opportunity for boards, including:
– Making, or reaffirming, oversight of human capital and culture as a strategic priority as 30% of directors indicated that they are either unsure or unable to articulate their company’s cultural strengths and weaknesses
– Enhancing board knowledge and understanding through more regular interactions with and reporting from the CHRO – nearly half of directors surveyed said the CHRO doesn’t regularly report on human capital to the board
– Beyond hearing from the CHRO, bringing an outside perspective into the boardroom is crucial to keeping a pulse on external trends, challenging internal bias, identifying blind spots and bringing an objective viewpoint and new ideas to the strategic planning process
– Regularly incorporating a more comprehensive set of culture and talent-related metrics will make those discussions more robust and productive, and assigning explicit responsibilities at the full board or committee level will provide greater visibility and foster accountability
-Lynn Jokela, TheCorporateCounsel.net June 9, 2020
