Reporting on workforce-related issues needs to improve to meet investor needs and reflect modern day workforces, according to a report from the UK’s Financial Reporting Council’s (FRC) Financial Reporting Lab (the Lab)

Working conditions, changing contractual arrangements and automation have all become areas of increasing investor focus in recent years and the Lab’s report shows investor support for clearer company disclosures.

The report provides practical guidance and examples on how companies can provide improved information to investors. It encourages companies to think of the workforce as a strategic asset and explain how it is invested in, underpinned by data on the composition, engagement, retention and diversity of the workforce.

FRC Lab director Phil Fitz-Gerald said, “As the nature of the workforce has evolved, so too have the opportunities and risks for investors who are rightly demanding improved reporting on workforce matters, such as what the workforce is, retention and turnover, and workforce engagement.

 “Reporting on culture should be informative and provide investors with a clearer insight into risks, setting out how the workforce contributes to value and how that value is maintained.

 “Given the competition for talent, investors are also interested in how companies intend to support the development of their workforces in a sustainable, long-term fashion.”