By failing to make the most of their 'human capital', firms could be harming their growth prospects, according to a report by Chartered Global Management Accountant (CGMA).
Entitled 'Talent pipeline draining growth: Connecting human capital to the growth agenda', the report suggests that nearly half of CEOs, CFOs and HR directors believe ineffective people management affected their key financial targets.
Furthermore, 40 per cent admitted that it has also reduced their company's ability to innovate, hrmagazine.co.uk revealed.
As a result, it could spur company executives to invest in leadership training and coaching in order to better manage employees within the company; encouraging innovation and hopefully hitting financial targets.
There was also a disconnect between high-ranking executives, according to the report. For example, 77 per cent of CEOs advocated cutting investment in workforce skills over the next 18 months, but only 18 per cent of HR directors agreed.
Charles Tilley, chief executive of CIMA, commented on the figures to theglobalrecruiter.com: "This worrying boardroom divide threatens to destabilise growth by allowing the best talent to slip away.
"It's vital that organisations embed a robust human capital strategy within the wider business plan and develop appropriate metrics and key performance indicators that are subject to the same level of scrutiny as financial data," he added.