Human capital reporting
Internal reporting
Analysing and reporting human capital data to top
management and line managers leads to informed
decision-making about what needs to be done to
improve business results, the ability to recognize
problems and take action to deal with them, and the
scope to demonstrate the effectiveness of HR solu-
tions and thus support the business case for greater
investment in HR practices. Data must be accom-
panied by analysis and explanation.
External reporting
The EC Accounts Modernization Directive requires
companies to prepare a business review. This has to
disclose information that is necessary for under-
standing the development, performance or position
of the business of the company, including the analysis
of key financial and other performance indicators,
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