How to Deal with Human Capital Management ～The change in your awareness makes the difference ～

"Human capital management" is a management style that regards human resources as capital and maximizes their value, thereby increasing corporate value in the medium to long term.


As stated in the "Report of the Study Group on Improvement of Sustainable Corporate Value and Human Capital" (Human Resources Ito Report 2.0), corporate governance reforms have been implemented in Japan since the 2010s to achieve sustainable growth in corporate value. Additionally, the main determinants of corporate value have been shifting from tangible assets to intangible assets. Among these intangible assets, human capital is positioned as the core of management.


With this understanding, the first step will be to draw up a blueprint that aligns with your company's medium- to long-term strategy, outlining who the target talent for investment will be, what kind of investment will be made in them, and what kind of return you aim to achieve as a result.

The term "human capital management" has gained widespread attention in Japan since the publication of the 'Human Resources Ito Report' in 2020. Following the release of the 'Human Resources Ito Report 2.0' in 2022, which outlined a concrete roadmap for initiatives, human capital management has become a widely discussed topic in the field of human resources.


In terms of systems, developments have been advancing rapidly, including the revision of the Tokyo Stock Exchange's Corporate Governance Code (2021), the publication of human capital disclosure guidelines by the Cabinet Secretariat (2022), and the mandatory disclosure requirements in securities reports (2023).


However, even before that, companies had been implementing people-focused initiatives from the perspective of "healthy management," and it can be said that the groundwork for advancing human capital management had already been established in certain fields and areas.


Despite this, why do we feel there is a gap in our efforts compared to Europe and the United States? The reason is...