Jeff Higgins and Rebecca Gorman - Potential Changes to the SEC's HCM Metric Disclosure Rules

Send us a text Summary: Jeff Higgins is the Founder and CEO of Human Capital Management Institute and an Adjunct Professor of Human Capital Analytics at USC. Rebecca Gorman is a Principal of Compensation Consulting at Salary.com. Rebecca kicked off her career conducting investment and economic research and found her way into the world of consulting via HR research. In this episode, Jeff and Rebecca talk about the potential changes to the SEC rules regarding HCM metric disclosures. Chapters: [0:00 - 6:19] Introduction Welcome, Jeff and Rebecca! Today’s Topic: Discussing Potential Changes to the SEC’s HCM Metric Disclosure Rules [6:20 - 14:07] What are some of the rule change suggestions that have been made regarding HCM metric disclosures? Employees are often labeled as the “most valuable assets” of a company, and yet nothing relevant to that claim is disclosed Do companies have any wiggle room to not satisfy these new HCM regulations? [14:08 - 21:01] How would new HCM metric disclosure rules affect companies? Some pushback is rooted in the concern that satisfying these new HCM regulations will take a significant amount of time The basic metrics that the SEC is likely to require may not warrant a big financial investment from companies seeking to comply [21:02 - 33:39] Assuming the SEC adopts these potential changes, how can companies prepare? Build your company narrative because having the numbers is only half the battle If you want to reduce risk, do not make up or get creative with your metrics [33:40 - 34:20] Closing Thanks for listening! Quotes: “By disclosing more [HCM metrics], you have a chance to grab the narrative to your story in a positive way.” “The SEC is very US-centric because it regulates US issuers, but when you have large, global companies that are US issuers, having to comply with this . . . it might look [different] compared to a competitor who is strictly US-based.”Resources:Draft of the SEC RecommendationHuman Capital Management Institute (HCMI)Salary.com's Consulting PracticeContact:Jeff's LinkedInRebecca's LinkedInDavid's LinkedInPodcast Manger: Karissa HarrisEmail us!Production by Affogato Media To schedule a meeting with us: https://salary.com/hrdlconsulting For more HR Data Labs®, enjoy the HR Data Labs Brown Bag Lunch Hours every Friday at 2:00PM-2:30PM EST. Check it out here: https://hrdatalabs.com/brown-bag-lunch/ Produced by Affogato Media