Human Capital Governance: The beginning of a new era

The era of human capital has arrived in the boardroom and, with it, the need for more thorough board oversight and governance of this mission-critical investment. The increased focus on human capital is neither a random confluence of events nor a "perfect storm." The era of human capital requires human capital governance. Investors realize that people are a big part of their investments, and the value of those investments. Boards, which represent those investors, will need to be more deeply interested in the overall wellbeing of employees who create value for the enterprise and its owners. Much of human capital governance historically has been piecemeal and reactive. Boards should act more holisrically. providing effective oversight of the enterprises entire human capital asset. Their objective should be straightforward: Maximize the value of this asset and the return delivered.