Ben Reuveni wrote an article for Human Resource Executive titled The SEC’s disclosure rules are changing HR forever.

« If you haven’t yet heard, for the first time in over 30 years the SEC has modernized its disclosure rules, requiring that public companies disclose far more detail about their human capital metrics than ever before. »

« In the past, the SEC had only one human capital metric: the number of employees at a public company. »

« In 1975, 83% of the value of S&P 500 companies was tied to the physical assets on those organizations’ balance sheets, according to Chief Learning Officer. Now, it’s almost flipped on its head. In 2015, 84% of the value of these companies mapped to human capital–and just 16% came from physical assets.»

« The SEC now asks public businesses to disclose material human capital metrics related to employee attraction, development and retention. It also references diversity and inclusion, engagement, employee satisfaction, and health and safety. »

« Imagine creating an environment where people feel valued and love what they’re working on… It’s an outgrowth of effective talent development and retention. Ensure that workers feel like there are constant opportunities available to them. »


The Law firm Holland and Knight notes:

« the SEC noted attraction, development and retention of personnel as non-exclusive examples of subjects that may be material, depending on the nature of the registrant’s business and workforce. »

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