FTSE companies fail to keep track of temporary staff
A report issued recently by the National Association of Pension Funds has focussed on companies’ understanding of their own workforces and their ability to accurately assess the level of human capital in their workforces. The report was entitled ‘Where’s the workforce in corporate reporting?’ and revealed that many companies have a lack of clarity when it comes to managing their workforces.
Although many companies would insist that their staff are one of their most important assets, and that human capital is vital to economic growth and corporate success, there seems to be some disconnect between this view and the working practices that many have adopted. With so many failing to report on their staff in a meaningful way, the NAPF have begun to question whether these companies could be setting themselves up for a fall in the future.
The report has highlighted the need for a business to understand its workforce in order to deploy it effectively, and recommends that corporations gain a full understanding of their workforce in order to ascertain the skills and capabilities of its members. This could also help firms to assess the effectiveness of its employment model and ascertain whether it their current working practices are sustainable.
Julia Kermode, chief executive of the Freelancer and Contractor Services Association, agrees with the NAPF’s view that management is impossible without measurement. She believes that it is important for organisations to gain as full an understanding of their workforces as possible in order to keep up with the competition.
The FCSA estimate that around 20 per cent of the UK workforce is made up of what they describe as ‘contingent workers’ including freelancers, contractors, temporary workers and employees on sero hours contracts. However, it is this type of worker that is most likely to be overlooked by human resources departments within organisations, and indeed only 11 per cent of the FTSE companies which were sampled for the report actually kept track of the number of temporary staff that made up their workforces.
The FCSE represents some of the workers that make up this important part of the workforce, and Ms Kermode is glad to learn that the NAPF is promoting a deeper understanding of the role that flexible workers play in the wider economy.
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