Issue link: https://digital.shearman.com/i/1293427
Shearman & Sterling LLP 28 | Preparing the Board for Human Capital Management Oversight and Disclosure Any new categories of human capital measurements should then be added to the categories that are already collected and tracked. These new categories should align with the company's business planning goals and risk management objectives and allow the board to oversee management's achievement of those goals. Therefore, it is important that companies choose categories that will result in a body of year-over-year data that boards may use to track human capital management progress over time. Companies may look to various sources for categories of potential human capital measurements from 3 Average hourly wage and percentage of employees earning minimum wage 1 Percentage of workforce covered under collective bargaining agreements 2 Number and duration of strikes and lockouts 4 Voluntary and involuntary turnover rates 5 Monetary losses as a result of legal proceedings associated with labor law violations Labor Practices 1 Total recordable incident rates, fatality rates and near miss frequency rates 2 Average hours of health, safety and emergency response training for workers 3 Percentage of staff who work in areas where smoking is allowed 4 Monetary losses as a result of legal proceedings associated with health and safety violations Employee Health and Safety 1 Percentage of gender and racial/ethnic group representations 2 Percentage of employees that are foreign nationals 3 Percentage of workers located offshore 4 Monetary losses as a result of legal proceedings associated with employment discrimination Employee Engagement, Diversity and Inclusion which to choose. One such source is Sustainability Accounting Standards Board (SASB). These fall into the general categories of labor practices, employee health and safety and employee engagement, diversity and inclusion and include the specific measurements listed below. SASB Human Capital Measurements