ISO 30414 : HR HUMAN CAPITAL REPORTING
What is HR Human Capital Reporting ?
ISO 30414 is an international standard that provides guidelines for internal and external human capital reporting (HCR) in organizations of any type, size, nature or complexity. It was published in 2018 by the International Organization for Standardization (ISO), a global network of national standards bodies. It covers topics such as compliance and ethics, costs, diversity, leadership, culture, health, safety, productivity, recruitment, skills and succession planning.
The objective of ISO 30414 is to consider and to make transparent the human capital contribution to the organization in order to support sustainability of the workforce. It also aims to help organizations improve their performance and competitiveness by optimizing their human capital management.
ISO 30414 was published in 2018 by the International Organization for Standardization (ISO), a worldwide federation of national standards bodies. It is currently under revision and a new draft version (ISO/AWI 30414) is expected to be published soon.
ISO 30414 is based on the principles of human rights at work and human governance. It establishes guidelines on human capital data capture, measurement, analysis and reporting. It also provides recommendations for small and medium-sized enterprises (SMEs) and examples of human capital reports with a combination of metrics.
ISO 30414 is applicable to all organizations, regardless of the type, size, nature or complexity of the business, whether in the public, private or voluntary sector, or a not-for-profit organization. However, some organizations may not have the objective or the capacity to use the entire set of metrics. Therefore, ISO 30414 allows organizations to select the most relevant metrics for their context and stakeholder needs.
What are the main features of ISO 30414?
ISO 30414 provides guidelines on the following aspects of HCR:
– The HCR process, including the guiding principles, target groups, data collection methods, reporting structure, risk management and reporting frequency
– The HCR areas, including 11 core areas and optional areas that cover various dimensions of human capital, such as compliance, ethics, costs, diversity, leadership, culture, health, safety, productivity, recruitment, skills and succession planning
– The HCR metrics, including quantitative and qualitative indicators that measure the inputs, outputs and outcomes of human capital
– The HCR documents, including internal and external reports that communicate human capital information to different audiences
ISO 30414 also provides recommendations specially for small and medium-sized enterprises (SMEs) and examples of human capital reports with a combination of metrics.
Why is ISO 30414 important?
Human capital is the collective knowledge, skills and abilities of an organization’s people and the impact on its long-term performance and competitive advantage. HCR is the process of measuring, analyzing and disclosing human capital information to various stakeholders, such as investors, customers, employees, regulators and society.
HCR can help organizations to:
- Enhance their transparency and accountability
- Improve their decision-making and strategic planning
- Attract and retain talent
- Foster a culture of learning and innovation
- Promote diversity and inclusion
- Support sustainability of the workforce
- Usage of structured and accepted results, which is a generally comparable context defines organizational value.
- Improved HRM procedures that encourage fair practice in the establishment and maintenance of a healthy workplace.
- A better understanding of the financial and non-financial returns produced by human capital investments.
- Open and consistent monitoring of data and insights from human resources that facilitates internal and external awareness and evaluation of the human capital of an enterprise and its current and future results.
How can organizations implement ISO 30414?
ISO 30414 is a voluntary standard that provides guidelines for internal and external human capital reporting (HCR) in organizations of any type, size, nature or complexity. It is not a mandatory requirement or a certification scheme, but rather a tool to help organizations improve their human capital management and performance. To implement ISO 30414 in your organization, you can follow these steps:
- Establish a-HCR team that involves representatives from different functions and levels of the organization
- Identify your target groups and stakeholder needs for HCR. These can include internal stakeholders (such as managers, employees, shareholders, etc.) and external stakeholders (such as customers, suppliers, regulators, investors, etc.).
- Select the most relevant HCR areas and metrics for your organization. ISO 30414 provides guidelines on 11 core HCR areas and 23 metrics, but you can choose the ones that best suit your context and objectives. You can also use additional or alternative metrics if needed.
- Establish tools and procedures for data collection, measurement, analysis and reporting. You can use existing data sources (such as HR systems, surveys, audits, etc.) or create new ones. You should ensure the quality, validity, reliability and comparability of the data. You should also define the reporting structure, frequency and format.
- Report your human capital information to your target groups and stakeholders. You can use different reporting documents (such as annual reports, sustainability reports, HR reports, etc.) or channels (such as websites, social media, newsletters, etc.). You should ensure the transparency, accuracy, completeness and timeliness of the information.
- Analyze and interpret the data to identify trends, patterns, gaps and opportunities for improvement
- Prepare and publish the HCR documents that present the data in a clear, concise and consistent manner
- Monitor and evaluate the impact of your HCR on your organization and stakeholders. You can use feedback mechanisms, indicators, benchmarks or audits to assess the effectiveness and value of your HCR. You should also review and update your HCR process and metrics periodically to ensure their relevance and alignment with your organizational goals.
If you are interested in implementing ISO 30414 in your organization, you can contact us for more information. We are a certified ISO 30414 consultant that can help you design, develop, implement, audit, and improve your HR. We have the expertise, experience, and tools to help you achieve your goals.