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Chartered Institute of Personnel and

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Human capital reporting
An internal perspective

a guide

1
– a CIPD guide for personnel professionals to help them identify, collate, analyse and communicate data on human capital
Written by Jim Matthewman and Floriane Matignon of Mercer Human Resource Consulting

Acknowledgements
The document draws on the perspectives, experience and measurement methods set out in the recent book by
Haig R. Nalbantian, Richard A. Guzzo, Dave Kieffer and Jay Doherty, Play to Your Strengths: Managing your internal labour markets for lasting competitive advantage (New York: McGraw Hill, 2004).
We are grateful to members of the CIPD Human Capital Working Party who provided input and advice:
Greg Aitken, Head of Employee Research and Measurement, Royal Bank of Scotland Group
Ron Collard, Partner, PricewaterhouseCoopers
Andrew Mayo, Director, Mayo Learning International
Tim Miller, Group Head of Human Resources, Standard Chartered Bank
Tony Palmer, Head of the Marple Partnership
Vicky Wright, Partner, Human Capital, Ernst & Young

Human capital reporting

Human capital reporting: an internal perspective

3
Human capital reprting

Contents
Preface

4

Introduction

6

Step 1 – Setting human capital management in context

10

Step 2 – Getting started: gathering and collating the data

21

Step 3 – Measuring human capital: tools and methodologies

27

Step 4 – Reporting the data: from internal to external reporting

34

Step 5 – Developing a route map to human capital reporting

40

Case Studies

1 Engaging employees to drive business performance – Standard Chartered

44

2 The service–profit chain – Nationwide

48

3 Reporting a 'People P & L’ – RAC

51

4 Building a people strategy – MultiCo

54

5 Linking people to business...

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