Blackrock: Here is What We Want to Know about Human Capital Management from Directors and Executives

Blackrock CEO Larry Fink wrote:

Companies must ask themselves: What role do we play in the community? Are we working to create a diverse workforce? Are we adapting to technological change? Are we providing the retraining and opportunities that our employees and our business will need to adjust to an increasingly automated world?

Now we get more detail about what that means.  Blackrock has posted the topics it may be covering when it engages with boards and executives of portfolio companies on matters concerning Human Capital Management (HCM):

When engaging boards on HCM we are likely to discuss:

 Oversight of policies meant to protect employees (e.g., whistleblowing, codes of conduct, EEO policies) and the level of reporting the board receives from management to assess their
implementation
 Process to oversee that the many components of a company’s HCM strategy align themselves to create a healthy culture and prevent unwanted behaviors
 Reporting to the board on the integration of HCM risks into risk management processes
 Current board and employee composition as it relates to diversity
 Consideration of linking HCM performance to executive compensation to promote board accountability
 Board member visits to establishments or factories to independently assess the culture and operations of the company

When engaging management teams, the topics we may cover include:
 Policies to encourage employee engagement outcomes and key drivers (e.g., wellness programs, support of employee networks, training and development programs, and stock participation programs)
 Process for ensuring employee health and safety and complying with occupational health and safety policies
 Voluntary and involuntary turnover on various dimensions (e.g., seniority of roles, tenure, gender, and ethnicity)
 Statistics on gender and other diversity characteristics as well as promotion rates for and compensation gaps across different employee demographics
 Programs to engage organized labor and their representatives, where relevant
 Systems to oversee matters related to the supply chain (including contingent workers, contractors and subcontractors)

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