Compliance
Providing HR Information for the Annual Report
Q: The HR department has been asked to supply information for the annual report. What should we include?
A:An annual report is used to communicate a company's activities and to provide organizational accountability to employees and others with interests in the use of company resources. Please note that the U.S. Securities and Exchange Commission (SEC) has specific requirements for publicly traded companies, and employers should consult with their attorney for guidance.
In addition to the information required by the SEC, an annual report may contain an organizational structure, a summary of the company financials, reports on major projects and accomplishments, statistics on employment activities and projections for the following year.
Any report including information on the company financials and organizational structure should require input from HR. HR might provide, for example, total compensation figures, HR expenses and an outline of the company organization.
HR also might provide reports on specific employment accomplishments. If, for example, the company had a period of growth, percentages of increase in employee workforce over the period could be reported. If there was a slower period of hiring, this can be expressed in employee turnover or employee retention. If the company relocates employees, figures on the number of employees/families relocated can be provided. HR hours involved in the process and costs may also be included.
HR might want to include information on any cost savings or profit it experienced due to a specific initiative or project. If the company implemented a human resource information system program, the HR department may be able to report a return on investment in increased efficiencies in HR processes due to the system capabilities. A cost savings can also be a result of a redesign of a benefits package or implementation of a safety program that has resulted in fewer accidents, which may be reflected in the company's workers' compensation premiums.
HR can also contribute by reporting on the department objectives and projects that correlate to the company's projected activities for the following year. For example, if the company is exploring operations in another area, information on strengths, weaknesses, opportunities and threats analysis, current labor market and salary trends may be included.
In short, any HR-related information that supports the company's goals and objectives should be included in the annual report. This can be expressed in HR metrics or department summaries or any other means that show how HR contributes to the company's success.
Article by Lisa Orndorff, SPHR - CA, GPHR, is an HR knowledge advisor for SHRM's HR Knowledge Center from http://www.shrm.org/kc/solutions/articles/archives/CMS_024535.asp#P-8_0