HUMAN CAPITAL AS AN ASSET: PAGE 30 AN ACCOUNTING FRAMEWORK FOR THE NEW WORLD OF WORK INCORPORATING THE FRAMEWORK INTO BUSINESS DECISION-MAKING How chief human resources Modern-day management systems and governance processes are predicated on frequent management and financial reporting, where management often must choose officers (CHROs) and boards between satisfying shareholders and creating value for stakeholders and their workforce. can mainstream this framework Although job cuts can help manage profitability over the short term, they have serious implications not just for the well-being of the people laid off and the broader community, in order to shape companies’ but also for the business. Important know-how is lost, and future rehiring, onboarding and training of employees can be time-consuming and can ultimately create downward approach to human capital in the pressure on overall productivity. Furthermore, in an increasingly socially and ethically conscious world, the brand could be harmed for consumers and an enterprise’s standing post-COVID economic recovery as an employer of choice could be jeopardized, putting the company in a less favourable position to rehire when demand returns. Workforce decisions during the COVID-19 crisis will have long-term effects on an enterprise. To create systemic change, immediate management key performance indicators (KPIs) should be reviewed to balance the human and financial implications of the handling of the crisis and of other major business decisions, tending to corporate financial health and demonstrating leadership, commitment and alignment with employees, customers, supply-chain partners, broader society and environment. KPIs should then evolve to incentivize a sustainable reset of workforce models needed to prepare the company for the future, including: employee health and well-being; work redesign; Return on Work; skills for the future; digital enablement; quality of employee experience; and diversity and inclusion. This level of change will require a huge mindset shift on the part of shareholders and management; however, the timing is favourable. The devastating labour- market impact of the pandemic and the need for governments to step in and provide extensive support have made it clear that a financially incentivized business model driven by short-term wins no longer works; public and media focus on how companies manage their human capital resources is intensifying.