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    Measuring Employment Impact: Applications and Cases
    28 Feb 2021Working Paper Summaries

    Measuring Employment Impact: Applications and Cases

    by Katie Panella and George Serafeim
    Employment impact-weighted accounting statements quantify the positive and negative effects of firm practices for employees and the broader labor community. This analysis of companies in different sectors shows how these statements are beneficial both at an aggregate and more specific level.
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    Author Abstract

    Applying the Impact-Weighted Accounts Initiative’s employment impact methodology on eight leading companies, we document wide variability in employment impacts as a percentage of salaries paid, ranging between 59 and 80 percent. We identify opportunities for improvement and discuss transition plans for companies to create more positive employment impact. We conclude with a call for disclosure of Equal Employment Opportunity Commission EEO-1 reports, paid leave, childcare and healthcare benefits, which would greatly facilitate the comparable and reliable measurement of employment impact in the future.

    Paper Information

    • Full Working Paper Text
    • Working Paper Publication Date: January 2021
    • HBS Working Paper Number: 21-082
    • Faculty Unit(s): Accounting and Management
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    George Serafeim
    George Serafeim
    Charles M. Williams Professor of Business Administration
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