GUIDELINES FOR INTERNAL AND EXTERNAL HUMAN CAPITAL REPORTING.pptx

guidelines in accordance with ISO 30414 for human resources monitoring and reporting

1. GUIDELINES FOR INTERNAL AND EXTERNAL HUMAN CAPITAL REPORTING ISO 30414 :2018

2.  What is ISO 30414? ISO 30414 is the first-ever set of guidelines for human capital reporting released by the International Organization for Standardization (ISO) at the end of 2018. ISO 30414 provides guidance on the human capital metrics companies report internally and those they should disclose publicly. The standards include details on the evaluation, measurement, and formatting of data. The main purpose is to make the contribution of human capital to the business more transparent to investors. The U.S. Securities and Exchange Commission (SEC) announced on August 26, 2020 that it adopted new Human Capital Disclosure Requirements for public companies reporting/listing on the U.S. exchanges, making ISO 30414 much more relevant for companies committed to ESG principles.

3. WHAT IS ISO? Acronorm for the International Organization for Standardization Derived from the Greek word isos , meaning equal Founded 23 Feb 1947 by 25 countries in London Headquarters in Geneva, Switzerland Membership covers 97% of world population, about 162 countries Members have equal voting rights Standards are equal wherever applied Standards cover products, processes and systems

4. About ISO Founded in 1947 Independent Non-governmental organization Global network of national standards bodies* One member per country represented by NSBs ISO membership comes with rights, benefits, obligations and good practice Nigeria is represented by SON *National standard body = national body most representative of standardization

5. The ISO brand Democratic. Voluntary ISO itself does not regulate or legislate. Market-driven Consensus ISO standards retain their position as the state of the art. Globally relevant ISO standards are technical agreements which provide the framework for compatible technology worldwide. They are designed to be globally relevant - useful everywhere in the world. ISO standards are useful everywhere in the world.

6. What do ISO standards do? ISO standards: make the development, manufacturing and supply of products and services more efficient, safer and cleaner facilitate trade between countries and make it fairer provide governments with a technical base for health, safety and environmental legislation, and conformity assessment share technological advances and good management practice disseminate innovation safeguard consumers, and users in general, of products and services make life simpler by providing solutions to common problems

7. ISO 30414, were developed by ISO technical committee ISO/TC 260, Human resource management, whose secretariat is held by ANSI, ISO’s member for the US.  Nigeria is represented in ISO TC 260 by SON

8. Why ISO 30414? Traditional financial reporting contains minimal information on an organization’s talent management effectiveness and productivity in relation to revenue and profit. ISO 30414 Human Capital Reporting Standard addresses this deficiency with recommendations for disclosing an international recognized set of metrics that covers all talent management areas

9. ISO 30414 and ESG Synergy ESG stands for environmental, social, and governance. ESG investing refers to how companies score on these responsibility metrics and standards for  potential investments The “S” in ESG investing stands for the Social aspect of sustainable investing, which includes a company’s strengths and weaknesses in dealing with human capital. Covers a wide range of human capital topics including but not limited to workforce diversity, pay equality and occupation health and safety. This is where the synergy between ESG investing and ISO 30414 shines.  The ISO 30414 guideline contains all the metrics that investors and other stakeholders need to better measure, track and benchmark the company's performance and commitment to the human capital aspect of ESG investing .

10. What's in ISO 30414? The ISO 30414 guideline includes 58 metrics divided into 11 main categories. Compliance  Number and type of grievance filed Training hours on compliance and ethics External dispute resolutions Number, type and source of external audit Findings and actions arising from these

11. What's in ISO 30414? Workforce Costs  Total workforce costs External workforce costs Ratio of the basic salary and remuneration for each workforce category Total costs of employment Cost per hire Recruitment costs Turnover costs 

12. What's in ISO 30414? Diversity Workforce diversity with respect to age, gender, nationality, disability, job family, job level/hierarchy, qualification, diversity of leadership team Leadership Leadership trust Span of control  Leadership Development  Percentage of leaders/talents who have formal mentors or coaches Percentage of leaders who have the formal function of mentors or coaches ​

13. What's in ISO 30414? Occupational Health and Safety Lost-time for injury Number of occupational accidents Number of people killed during work (fatality, death or mortality rate) Training hours on health and safety at work vs. total amount of training hours Number of employees who participated the training/total numbers of employees

14. What's in ISO 30414? Organizational Culture Engagement, satisfaction, commitment Retention rate Productivity - revenue, turnover, profit per employee Human capital return on investment

15. What's in ISO 30414? Recruitment, Mobility and Turnover Number of qualified candidates per position Quality per hire Average length: time to fill vacant positions; time to fill vacant critical business positions internal/external Transition and future workforce capabilities assessment Percentage of positions filled internally Percentage of critical business positions filled internally Percentage of vacant critical business positions in relation to all vacant positions

16. What's in ISO 30414? Employee Bench Strength Turnover rate Involuntary turnover rate Involuntary critical turnover rate Voluntary turnover rate (without retirement) Exit/turnover reasons/leaving employment by reason

17. What's in ISO 30414? Skills and Capabilities Total developing and training costs Learning and development information Internal mobility rate Workforce competency rate Succession planning

18. What's in ISO 30414? Workforce Availability Absenteeism rate Full-time equivalents Number of employees Contingent workforce; independent contractor; temporary workforce Number of full-time and part-time employees

19. ISO/TS 24178 . Organizational culture metrics look at the drivers of a good company culture with a committed and engaged workforce, and ways to measure it. It includes elements such as a clear organizational purpose and values, hiring practices and more . ISO/TS 24179 . Occupational health and safety metrics, specifically relates to occupational health and safety data and highlights any issues that should be considered when interpreting it . ISO/TS 30407 . Cost per hire, describes actions to be taken when calculating cost per hire to maintain quality and transparency ISO tools tools to objectively track human capital metrics.

20. ISO/TS 30410 . Impact-of-hire metric identifies principles for determining critical positions and ways to measure their impact . ISO/TS 30411 . Quality-of-hire metric provides a range of options to measure the quality of hire that can be aligned to various business and organizational conditions . ISO/TS 30421 . Turnover and retention metrics describe the elements of workforce turnover and highlights issues that need to be considered when interpreting the data. ISO tools tools to objectively track human capital metrics.

21. ISO/TS 30423 . Compliance and ethics metrics provide the formula for comparable measures and highlights issues that need to be considered when interpreting the compliance data . ISO/TS 30425 . Workforce availability metrics describe the formula for calculating the number of employees available at any point in time . ISO/TS 30427 . Costs metrics detail a formula for calculating costs and highlights issues that need to be considered when interpreting the data ISO tools tools to objectively track human capital metrics.

22. ISO/TS 30430 . Recruitment metrics describe the elements of recruitment, mobility and turnover, with a formula for comparable measures . ISO/TS 30431 . Leadership metrics provide a method for measuring the value of leadership in an organization, including trust, span of control and leadership development . ISO/TS 30432 . Workforce productivity metrics cover not only the output of employees and contractors, but any issues that may influence it. This includes current industry employment levels and skills supply, levels of training and experience, the quality of the leadership and more. It also enables competitor benchmarking within and across sectors. ISO tools tools to objectively track human capital metrics.

23. ISO tools tools to objectively track human capital metrics. ISO/TS 30433 . Succession planning metrics describe the elements of succession planning metrics and provides comparable measures to report on them. It also covers succession effectiveness rate, successor coverage rate and succession readiness rate. ISO 10018  for People Engagement including employees, customers, supply and distribution chain partners and communities, including recommended metrics.

24. ISO 30414 Certification Process Step 1: Assess current human capital risk disclosures vs. ISO 30414 guidelines Step 2: Identify potential disclosure gaps Step 3: Evaluate enterprise data availability and system reporting capabilities to determine which metrics to include in internal and external reports Step 4: Certification audit Step 5: Monitoring and re-certification audit

25. Multiple factors are putting pressing on CEOs of almost any type of organization to demonstrate a strategic and systematic approach to the management of all stakeholders, and not simply to focus on the needs of shareholders. • The nations of the European Union are implementing new human capital disclosure requirements of any organization that employs 500 or more people. • The  U.S. Securities & Exchange Commission is about to implement new human capital disclosure requirements of public companies, with the SEC Chairman Jay Clayton a public advocate for more effective human • 70% of Americans in a recent survey by  JUST Capital  said that they want more information on organizational human capital practices because such factors influence their buying or job selection decisions.  • Even the  accounting profession  has begun to argue for a better accounting of human capital on the balance sheet. Why ISO 30414 now?:  

26.   Benefits of ISO 30414 Human Capital Standards and Certification The ISO 30414 standard provides voluntary guidelines to help organizations address the growing pressure not only to more effectively measure their human capital assets but to make disclosures to regulators and stakeholders, including customers, employees, and communities. The ISO 30414 certification provides both auditors and developers the knowledge and credibility to help their own organizations or their clients produce human capital reports and analytics that are meaningful for internal management purposes as well as for public disclosures to regulators and to all stakeholders.  .  

27. ISO 30414 certified professionals can serve organizations as auditors of human capital reporting or as developers of a human capital reporting in conformance with ISO standards, but not both on behalf of the same organization.   ISO 30414 certifications provide organizations making such disclosures not only with enhanced credibility but “safe harbor” or risk mitigation from a legal standpoint—meaning that they have demonstrated a strategic commitment to conformance with worldwide accepted standards. Use of the ISO 30414 standards for corporate responsibility reports also demonstrate a commitment to providing relevant and more comparable information to stakeholders

28. Enable financial investors to credibly assess the quality of HR mechanisms and processes between competing companies, include this information in respective financial evaluation models, and measure its impact on organization’s bottom line.

29. Benefits For HR Consultants/Assessors/ Practitioners Identify measurement opportunities; diagnose HR financial and operational measures, understand the messages in measured data, with a view to become competitive, cost effective and yet responsive to business needs. Quantify HR department’s contribution to the overall bottom line, through solid, factual, and verifiable data and analyze toughest workforce decisions with easy-to-use mathematical formulas. Integrate measurement analytics with action plan through bench-marking, to achieve and surpass industry standards.

30. . Accessible and transparent human capital data insights enhances internal and external understanding and assessment of investment in organization’s human capital, its present and future performance along with financial and non-financial returns. Stakeholders view intangibles alongside tangibles data to review companies' performance. 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 captures data to support organization’s value creation cycle. Benefits For HR Consultants/Assessors / Practitioners