The growing attention on ESG, combined with interest among certain investors in greater transparency on company human resources practices, has led to enhanced focus on human capital metrics, ranging from typical workforce management to compensation and supply chain issues.  Human capital metrics provide investors and activists with a potentially potent point of leverage through additional metrics which can be used to achieve changes desired at companies.  Accordingly, several initiatives have been launched which seek to require companies to provide detailed human resources metrics and human rights commitments. Among the more requested metrics include:

• Workforce Demographics & Stability:  The number of full and part-time workers and policies on subcontracting and outsourcing; Voluntary and involuntary turnover rates, and internal hire rate;
• Workforce Composition:  Diversity (gender and racial), pay equity policies, audits and ratios;
• Workforce Skills and Capabilities:  Training, alignment of training initiatives with business strategy, and “the skills gap”;
• Human Rights Commitments:  Principles to evaluate risk of human rights violations, supplier due diligence in compliance with human rights principles; and