Inconsistent and incomplete workforce data is preventing investors and stakeholders from fully assessing how well UK companies manage people-related risks and support long-term organisational value, new findings show.
A review of FTSE 100 annual reports found that key indicators such as recruitment costs, training investment and absence rates are often missing or poorly reported. The research also identified wide variation in how firms disclose metrics around health, safety, diversity and the use of artificial intelligence.
The analysis was carried out by the Chartered Institute of Personnel and Development (CIPD), the professional body for HR and people development, and Railpen, one of the UK’s largest pension funds. Their joint report, Future of Workforce Reporting, argues that better transparency and standardisation is needed to reflect the real contribution of people to business performance.
Gaps in key workforce metrics
The review revealed wide variations in what companies disclose, with critical indicators often missing or only partially reported. While 38 percent of companies shared data on employee turnover, only one firm disclosed recruitment costs. Training investment was another area with significant gaps, with just 10 percent of companies reporting total training spend and 41 percent including figures on hours of training per employee.
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Other key data points were similarly under-reported. Just 13 percent of FTSE 100 companies mentioned providing AI skills training for staff, while only 14 percent confirmed they had an AI governance policy. For employment relations, 27 percent disclosed figures on grievance or whistleblowing cases, but just 10 percent explained the reasons behind them.
Less than a fifth of companies included any detail about their contingent workforce, despite it often being a substantial cost and potential risk factor.
CIPD chief executive Peter Cheese said organisations needed to treat people issues as critical business risks. He said companies should be reporting workforce data alongside financial metrics to reflect their long-term value.
“The old adage of ‘what gets measured gets done’ has never been truer, but our analysis shows current workforce reporting practices too often aren’t providing internal or external stakeholders with sufficient evidence they need to make informed decisions,” he said.
“Organisations need to place greater emphasis on workforce matters when they’re considering their key performance indicators and risks to reflect that people issues, just as much as financial considerations, will decide whether a business is successful over the long-term.”
He added that growing interest from standards bodies, investors and regulators in common metrics would help HR demonstrate the value of people-related initiatives.
Investors call for transparency
Railpen, one of the UK’s largest and longest-running pension funds, said workforce quality and wellbeing were essential to sustainable investment returns. Caroline Escott, head of investment stewardship and co-head of sustainable ownership at Railpen, said better disclosure would benefit both companies and investors.
“Effective workforce management is a highly material factor for investors to consider,” she said. “A motivated, fulfilled and content workforce is integral to generating sustainable financial returns, while clearly being a desirable goal in its own right.”
She said companies should be able to explain both their successes and challenges in workforce management, but that current reporting made it difficult to evaluate.
“It’s essential that companies improve their workforce reporting practices to be able to show their successes where they are happening, and to confidently address concerns where workforce challenges arise,” she said.
“Our longstanding partnership with the CIPD combines the company and the investor perspective, demonstrating strong alignment across the value chain on the worth of the workforce. This latest report provides practical and clear recommendations for both companies and policymakers so that they can improve workforce reporting standards and achieve an approach to the workforce that supports long-term value creation.”
Recommendations for better reporting
The report calls for a dedicated workforce section in annual reports, with 47 percent of companies currently lacking one. A standalone section with a clear narrative would make it easier for investors, regulators and other stakeholders to understand how workforce issues are being managed and linked to business outcomes.
It also urges companies to adopt minimum reporting standards in five key areas: workforce composition, wellbeing, reward, employee voice and skills. Disclosures should be clear, comparable and show how the workforce strategy supports business goals.
In addition, the report suggests that the Financial Reporting Council consider issuing updated guidance to encourage clearer reporting under the UK Corporate Governance Code. This could include convening stakeholders to explore how boilerplate reporting can be avoided and workforce-related risks better addressed.
The authors also point to the work of the International Sustainability Standards Board as a possible framework for baseline workforce disclosures, allowing companies to align with evolving global expectations.
As investor scrutiny on environmental, social and governance issues continues to intensify, the CIPD and Railpen argue that greater transparency on workforce matters is essential to both business performance and social accountability.
