I'm very grateful to HR magazine for ranking me #4 on the HR Most Influential Thinkers list despite being a Professor of Finance, not HR, organisational behaviour, or business psychology. Finance and HR are typically seen as separate disciplines within academia, and separate departments within companies. But HR issues are finance issues - human capital is most firms' greatest asset, and investing in your people is often the most positive-NPV investment that a company can make. A leading investor told me she asks CEOs about their people. Some CEOs are able to immediately answer what human capital challenges they face and what they are doing to address them. Others say "I didn't know you were going to ask me about my people; next time I'll bring along the HR director". But human capital issues are CEO-level issues, not just for the HR director.
When is the next book out? Mrs Mkt is impatient!
My favourite question to ask a chair of a remuneration committee is "what other than money motivates your CEO?" Amazing the answers you get and very telling re corporate culture and what actually happens in a company outside of shareholder-company negotiations on pay. Hint: be most wary of the directors who don't light up and give an impassioned and animated answer at the question or who can't answer coherently. Those are the ones to worry about!
Congrats Alex - you are a worthy winner! Can't wait to hear how you got on at the drinks reception. Did you mention that the McKinsey & Company reports on DEI are far from solid? (Lol usually I'm the social hand grenade at these things... 😆)
I am a thematic research analyst looking at human capital. The amount of explaining I have to do to investors and companies as to why it is an important topic of conversation and material to the investment thesis continues to surprise me. Even most industrial companies spend more on labour than they do capex and then by a significant magnitude but investor conversations are generally focused on capex versus labour. I am fortunate enough to be in an organisation and working with people, who understand the importance of knowing how effectively a company manages its HC, but it can still be a hard sell!
Congratulations Alex Edmans. Well deserved. I cite your research regularly to support this reality that too many business leaders fail to understand: "But HR issues are finance issues - human capital is most firms' greatest asset, and investing in your people is often the most positive-NPV investment that a company can make...But human capital issues are CEO-level issues, not just for the HR director." Exactly.
Congratulations. I could not agree more that people issues should be CEO-level issues. And they often are not as we document in this paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4215010
If there are no people, there's no Finance idea to apply. That`s why it is important your work on how to Grow the Pie to keep people (and HR) alert on it. This living May Contain some Lies but it's somewhat true Gut Feel in The End. 😀 Many congrats, prof! 👏
So true. Just as AI isn’t only a tech issue but a human capital one too.
Congratulations on being ranked #4 on the HR Most Influential Thinkers list! Your perspective brilliantly bridges the gap between finance and HR, highlighting how intertwined these disciplines truly are. It's refreshing to see recognition of the importance of human capital as a critical asset and the role of financial strategies in investing in people. Your insight on CEOs addressing human capital challenges directly underscores the necessity for leaders to prioritize and integrate HR considerations into their strategic decisions. Well-deserved acknowledgment!
Top 10 HR Most Influential Practitioner 2024 | HR Leader | Chartered MCIPD | Commentator for HR publications
3wHoping this was one of the good photos I managed to take.... Congrats on being this unique voice...