HUMAN CAPITAL AS AN ASSET: PAGE 5 AN ACCOUNTING FRAMEWORK FOR THE NEW WORLD OF WORK INTRODUCTION Workforce principles The following principles were developed jointly by Willis Towers Watson and the World Economic Forum earlier in the COVID-19 crisis to help organizations shape a responsible initial course of action in managing their workforces in changed circumstances. They can also help guide employers to plan and implement an ethical Having a robust framework for measuring and and sustainable reset of their people strategies as they emerge into the “new normal”. accounting for human capital would support a — See this crisis as a defining leadership moment – and continue delivering principled approach to workforce management the best possible outcomes for all stakeholders. Effective leaders ensure the (see box: Workforce principles). Such a organization stays true to its purpose, values and culture. They are transparent, framework would enable a company empathetic and create trust, and their behaviour helps calm and support employees to monitor and assess the return on its who may feel stressed and anxious. investments in its employees – in the same — Adopt an agile and continuous learning mindset. The uncharted waters of this way as it measures returns on financial and crisis demand agility and innovation to ensure responses are being recalibrated to a intellectual capital; however, given the intangible changing set of circumstances. nature of strong corporate culture, stakeholder — Understand the perspectives of all stakeholders (e.g. employees, shareholders, leadership and employee well-being, companies customers, suppliers, unions, healthcare providers, community) and engage have struggled to quantify the contribution of them in decision-making. Maintain awareness of the shifting needs and priorities of all stakeholders and the evolving state of competitive and innovative practices. their human capital assets. — Focus on the intersection of employee and company well-being. Cost pressures place significant stress on leaders to meet the needs of shareholders at a time when the well-being of employees, particularly the most vulnerable, is being seriously threatened. But the risks to – and benefits of – employee well-being and company well-being are highly aligned. — Make decisions and take actions that consider medium-term needs and longer-term business objectives. Organizations should avoid engaging in short- term actions that may compromise the longer-term sustainability of the business.