Recently the Securities and Exchange Commission (SEC) amended its disclosure requirements related to human capital resources. Corporations must disclose, “Any human capital measures or objectives that the registrant focuses on in managing the business, potentially including measures or objectives that address the development, attraction, and retention of personnel.” This is the latest example of the growing trend toward disclosure and corporate transparency. (also see Blog on SEC Human Capital Resources Reporting)
Two years ago, ISO 30414 was published, dealing with “Human resource management — Guidelines for internal and external human capital reporting” (1). Note that this standard is simply a guideline; it is not mandatory.
The standard is broad, so not all parts will apply to every organization. Here is the list of the main categories:
- Compliance and ethics
- Costs
- Diversity
- Leadership
- Organizational culture
- Organizational health, safety, and well-being
- Productivity
- Recruitment, mobility and turnover
- Skills and capabilities
- Succession planning
- Workforce availability
The chart below summarizes the standards’ recommendations for external reporting (2):
Conclusion
In this age of transparency, the requirements for human capital reporting will grow. It’s important to have an HR system that can provide in-depth analysis of a broad range of data.
Contact Auxillium HRnetSource to find out more about our powerful HR analysis and reporting tools.
(1) https://www.iso.org/standard/69338.html
ISO 30414 was developed by ISO technical committee ISO/TC 260, Human resource management, the secretariat of which is held by ANSI, ISO’s member for the USA. It can be purchased from your national ISO member or through the ISO Store.
(2) https://www.workforce.com/news/human-resources-gets-its-iso-approval