Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • Article
  • Journal of Financial Transformation

Human Capital and the Future of Work: Implications for Investors and ESG Integration

By: Sakis Kotsantonis and George Serafeim
  • Format:Print
ShareBar

Abstract

Human capital development (HCD) is a key consideration for most companies, but only recently have investors focused on understanding the risks and opportunities related to human capital with the emergence of environmental, social, and governance (ESG) investment frameworks and impact investing. We argue that the importance of human capital is likely to be magnified in an environment of rapid technological change, where the future of work is uncertain and that existing frameworks for measuring and evaluating HCD might not be fit for purpose. Against this backdrop, we derive an HCD metric that focuses on outcomes rather than inputs; demonstrate that even in the current disclosure landscape one could measure with reasonable accuracy this metric for thousands of companies; and provide exploratory evidence on its relationship with employee productivity. Moreover, we develop an estimate of probability of automation of job tasks for each sub-industry and show the relationship between this probability to elements of our HCD metric and other human capital characteristics. Finally, we outline an investor engagement framework to improve the disclosure landscape related to HCD and to empower effective investment stewardship.

Keywords

Future Of Work; ESG; Employee Engagement; Employee Compensation; Human Capital; Human Resources; Employees; Compensation and Benefits; Wages

Citation

Kotsantonis, Sakis, and George Serafeim. "Human Capital and the Future of Work: Implications for Investors and ESG Integration." Journal of Financial Transformation 51 (April 2020): 115–130.

Supplemental Information

Dataset for subindustry level human capital development and probability of task automation
Includes the probability of automation and the human capital development metric ranking by subindustry
  • Read Now

About The Author

George Serafeim

Accounting and Management
→More Publications

More from the Authors

    • March 2023
    • Faculty Research

    Northvolt: Building Batteries to Fight Climate Change

    By: Debora L. Spar, Georgios Serafeim and Julia Comeau
    • January 2023
    • Faculty Research

    Elon Musk at Tesla

    By: George Serafeim and Amram Migdal
    • January 2023
    • Faculty Research

    Organizational Climate Transition Risk Model

    By: George Serafeim and Benjamin Maletta
More from the Authors
  • Northvolt: Building Batteries to Fight Climate Change By: Debora L. Spar, Georgios Serafeim and Julia Comeau
  • Elon Musk at Tesla By: George Serafeim and Amram Migdal
  • Organizational Climate Transition Risk Model By: George Serafeim and Benjamin Maletta
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College