By: Fran Seegull

Originally Published In ImpactAlpha’s Policy Corner On February 6, 2026.

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Fifty years ago, the vast majority of a company’s market capitalization was driven by its tangible, physical assets.

Today, that reality has flipped, and nearly 90% of the S&P 500’s market value comes from non-tangible sources. These include intellectual property and brand equity, which are largely driven by a company’s workforce. Yet, while the engine of our economy has changed, the disclosures we use to assess corporate value are stuck in the past.

The people who make up a company are its greatest asset, yet investors are left making decisions without a clear understanding of the workforce behind their portfolios. Disclosures regarding how companies treat, compensate, train and retain their employees are largely left to the discretion of individual firms. Without a standardized set of data on these questions, the market is unable to take these important factors into account.

With the federal government currently looking to roll back corporate disclosures in securities law, states have a historic opportunity to lead. By requiring standardized reporting on workforce data, states can ensure that so-called “human capital” is treated with the same financial rigor as equipment or cash flow.

We are excited to see concrete advancements in Illinois already.

The WISER Act

While voluntary corporate reports exist on workforce investments, they are often inconsistent and “cherry-picked” for marketing purposes. To truly integrate workforce data into investment models, we need market-wide standardization.

This is why the introduction of the Workforce Investment and Sustainable Employment Reporting (WISER) Act (HB 5147 and SB 3975) by Representative Mary Beth Canty and Senator Omar Aquino in Illinois is so critical. This first-in-the-nation legislation would require large companies conducting business in Illinois to disclose key workforce investment data, as identified by the Human Capital Management Coalition:

Workforce Composition: how many workers a company employs to accomplish its strategy
Compensation and Benefits: the costs of the workforce to a firm
Workforce Stability: talent attraction and retention strategies implemented by a firm
Workplace Quality: including policies that might encourage productive workplaces

Financial relevance

This is not about values signaling; workforce issues are financially relevant. We have clear evidence that how a company manages its people directly impacts its long-term performance.

Many studies, including from Harvard and JP Morgan, have confirmed this for over a decade. Workforce investments are not just “costs” to be minimized but relevant factors that directly contribute to a company’s bottom line.

For financial markets to be truly efficient, transparency on these material issues is essential. Investors need accurate data to assess risk and seek out opportunities. Without standardized corporate workforce disclosures, investors cannot see the hidden risks of high turnover or the competitive advantage of a highly skilled, committed team.

Pro-market, pro-transparency

Predictably, critics may label such measures as an “undue burden” to corporations or ideologically driven.

The facts suggest otherwise.

Workforce data is already collected by most companies, and many components are already reported to federal agencies like the EEOC or OSHA. The WISER Act simply creates a standard framework so that this data can be utilized by the public, investors and other market actors.

Furthermore, this is a fundamentally pro-market initiative. Jay Clayton, the SEC Chair appointed by President Trump in his first term, was the first to implement some workforce disclosure requirements, recognizing that these factors are essential to understanding corporate performance.

We can all agree that transparency is the lifeblood of healthy markets.

The new standard

Illinois has an exciting opportunity to take a leading role with this legislation. It is time to bring our market regulations in line with the reality of how companies actually do business in 2026.

By making workforce data transparent, we protect investors, empower workers and take one important step toward a more resilient, modern economy. We look forward to Illinois setting an example for the nation, and seeing other states and the federal government follow this precedent.

Investors with a presence in Illinois should reach out to their state lawmakers and ask for their support of the WISER Act. It is time to treat the workforce like the material asset it has always been.

Fran Seegull is President of the US Impact Investing Alliance