Don’t always blame the CEO

CEOs say it's investors who don’t care about the quality of the workforce.
By David Brown
|Canadian HR Reporter|Last Updated: 03/23/2002

HR professionals regularly complain about CEOs who don’t appreciate the value of good human capital management. In fact CEOs do — it’s investors who are the problem.

Chief executives want to have great talent and invest in human capital, but they feel when they do they are unfairly penalized by the markets, said Joel Kurtzman, a partner with PricewaterhouseCoopers, which surveyed more than 1,100 CEOs from around the world.

“CEOs are very predisposed to invest in their people and very frustrated by the fact the market doesn’t value that highly enough,” he said. More than 80 per cent of respondents said workforce quality and retention is an important indicator of company value, but only 51 per cent of responding CEOs believe investors take the quality of a workforce into account when assessing an organization.