Podcast: The SEC Human Capital Rules And Why Government Regulations Can Be Good | Josh Bersin

In this 21-minute podcast, Josh Bersin discusses the Security Exchange Commission’s (SEC), which regulates publicly traded companies, Human Capital (HC) Disclosure rule. The rule, which went into effect on November 9, 2020, gives publicly traded firms 60-90 days after their fiscal year to include HC information in their annual report. Since there isn’t much guidance from the SEC on what HC measures a firm should share, Josh mentions that this is an opportunity for firms to put together the story they want stakeholders to hear about the firms’ human capital.“ Interestingly, firms vary considerably on the type of HC information they share. Tesla, for instance, submitted one paragraph as its disclosure; Ford published three pages, including information on turnover rates, spending, internal mobility, and more. Fossil created a list of 70 parent HC topics the organization could report, with 3-6 metrics in each. Other insights and considerations are provided on how firms can articulate their human capital narrative to key stakeholders. In case you missed it, I have shared several posts and resources on this topic over the past year, which can be accessed here.