ISO 30414:2025 Human resource management — Requirements and recommendations for human capital reporting and disclosure provides guidelines for internal and external human capital reporting and disclosure (HCRD). The standard outlines a baseline for global and comprehensive internal and external HCRD applicable across organizations of all sizes and sectors, focusing on measuring factors that are within an organization’s control.
The goal is to consider and to make transparent the human capital contribution to the organization in order to support sustainability of the workforce. The standard 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 not-for-profit.
ISO 30414 provides requirements and recommendations on the following human capital reporting areas:
- workforce composition;
- diversity;
- costs;
- productivity;
- health, safety, and well-being;
- leadership, culture and engagement;
- compliance, ethics, and workforce relations;
- recruitment;
- mobility and succession planning;
- workforce turnover;
- skills, capabilities, and development.
The standard’s guidelines and associated metrics can result in better organizational performance. It is recognized that some organizations do not have the objective or the capacity to use the entire set of metrics. Nonetheless, the standard is likely to be equally as useful to, for example, small and medium-sized enterprises as well as their larger counterparts.
What does it cover?
| Introduction |
| 1 Scope |
| 2 Normative references |
| 3 Terms and definitions |
| 4 Human capital reporting and disclosure process |
| 4.1 General |
| 4.2 Guiding principles |
| 4.3 Target groups and stakeholder relevance |
| 4.4 HCRD framework, systems and units of workload |
| 4.5 Tools, procedures and responsibilities for data collection |
| 4.6 Reporting disclosure format, frequency and locations |
| 4.7 Reporting areas |
| Annex A HCRD metric definitions, calculations and formulae |
| Annex B Business acumen |
| Annex C Recommendations specially for small and medium-sized enterprises (SMEs) |
| Annex D Examples of human capital metric reports with combination metrics – large organization |
| Annex E Example human capital disclosure report with combination metrics – large organization |
Implementation
Implementing internal and external human capital reporting and disclosure in accordance with ISO 30414 involves several key steps.
Leadership Commitment
Secure commitment from senior leadership to prioritize human capital management, reporting, and disclosure initiatives.
Scope Determination
Define the scope of human capital reporting and disclosure, considering internal and external factors that affect human capital management within the organization.
Identification of Stakeholders
Identify internal and external stakeholders who are impacted by or have an interest in human capital management practices, reporting, and disclosure.
Establishment of Objectives
Define clear objectives for human capital reporting and disclosure, considering the organization’s strategic goals, values, and priorities.
Data Collection and Analysis
- Develop processes for collecting relevant human capital data, both internally and externally.
- Analyze collected data to identify trends, patterns, and areas for improvement in human capital management.
Key Performance Indicators (KPIs) Selection
Select appropriate KPIs to measure various aspects of human capital management, such as recruitment, retention, training, and development.
HCRD Framework Development
Develop a HCRD framework aligned with ISO 30414, including formats, frequency, and methods for reporting human capital data.
Internal Reporting
Implement mechanisms for internal human capital reporting to inform decision-making processes, resource allocation, and performance improvement initiatives.
External Reporting
Prepare reports for external stakeholders, such as investors, customers, regulators, and the public, in accordance with ISO 30414 guidelines and applicable reporting standards.
Quality Assurance
Establish processes for ensuring the accuracy, reliability, and integrity of human capital data used for reporting and disclosure purposes.
Continual Improvement
Regularly review and update human capital reporting and disclosure practices based on feedback, changing business needs, and emerging trends in human capital management.
Training and Awareness
Provide training and awareness programs to employees and stakeholders on the importance of human capital reporting and disclosure, and their roles in supporting it.
Documentation and Record-Keeping
Maintain comprehensive documentation of human capital data, reporting and disclosure processes, methodologies, and outcomes for transparency and accountability.
Auditing and Verification
- Conduct internal audits to verify compliance with ISO 30414 and assess the effectiveness of human capital reporting and disclosure practices.
- Consider engaging external auditors or verification bodies to provide independent assurance on the accuracy and reliability of human capital reports.
Integration with Management Systems
Integrate human capital reporting and disclosure with existing management systems, such as quality management, environmental management, and social responsibility, to enhance overall organizational performance.
In conclusion…
By following these steps, organizations can effectively apply internal and external human capital reporting and disclosure as part of human resources management in accordance with ISO 30414. Regular reviews and updates are essential to ensure the continued relevance and effectiveness of human capital reporting and disclosure practices.
ISO 30414 can be purchased through the ISO.org website.
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