What’s it all about?
All HR professionals know that we sometimes struggle to show the ROI of the work we do. Consequently, when times get tough, resources get cut. It is a vicious and frustrating circle for both HR professionals and employees alike. We need objective, credible, and comparable metrics in the Human Capital Management (HCM) arena.
ISO 30414:2018 provides this.
Due diligence by potential investors, employees, clients, and suppliers creates a clear need for frequent HR analysis. Demands from financial auditors, advisers, and others involved in mergers and acquisitions have produced a growing requirement for clarity around human capital measures that can be applied regardless of the organisation’s size, location, industry, or sector.
Why haven’t I heard about it?
In 2019 the International Standards Organisation published a global standard for internal and external human capital reporting, ISO 30414:2018. This ISO standard measures the organisational value of HR. It provides an amazing opportunity to reveal what HR professionals have always known, that what we do and how we do it adds to organisational success. It makes for a better organisation and now we can prove that with an internationally recognised standard – now that is something to celebrate!
So, who thinks it’s a good idea?
In December 2019, the World Economic Forum published an article clearly stating both the value of, and demand for, more transparency and accountability for HR.
“Right now, HR work is hidden in the field of intangibles. It is very difficult to measure. There is no (widely accepted) direct link to economic results. This is going to change. ISO 30414 provides definitions, frameworks and rules around people related data/information. Stakeholders will list them as intangibles alongside other relevant performance data on companies. As a result, assessing whether a company is set up for sustainable growth becomes much more valid. This disruption also provides a massive opportunity for HR professionals as they understand HR practices, and how HR systems capture and crunch data”
World Economic Forum
This is going to change. ISO 30414:2018 provides definitions, frameworks and rules around people-related data/information.
Stakeholders will list them as intangibles alongside other relevant performance data on companies. As a result, assessing whether an organisation is set up for sustainable growth becomes much more valid. This disruption also provides a massive opportunity for HR professionals as they understand HR practices, and how HR systems capture and crunch data.’
What gets measured?
The standard measures 11 core area of reporting:
- Compliance and Ethics
- Cost
- Diversity
- Leadership
- Organisation Culture
- Wellbeing, Health & Safety
- Productivity
- Recruitment, Mobility and Turnover
- Skills and Capability
- Succession Planning
- Workforce Availability
ISO 30414:2018 brings true organisational value. It raises the profile with investors and potential investors, gives assurance to customers and suppliers, and can be the cornerstone of the employer brand that attracts and retains talent. Right now there is a real opportunity to consolidate what we have learned and to be recognised for great people practice. In a time when competition will be fierce as the world re-starts, can you afford not to be certified?
Keep a lookout – our next blog will focus on wellness health and safety
We would love to hear from you and help you understand a little more about what ISO 30414:2018 could mean for you.
You can download our 80 Reasons for Achieving ISO Certification.
View the World Economics Forum article on their website.
