ISO 30414 Human Capital Reporting

April 16, 2024•4 minute read

ISO 30414:2018 Human resource management — Guidelines for internal and external human capital reporting provides guidelines for internal and external human capital reporting (HCR). 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 guidelines on the following core areas of HCR:

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 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 their larger counterparts.

Introduction

1 Scope

2 Normative references

3 Terms and definitions

4 Human capital reporting process

4.1 General

4.2 Guiding principles

4.3 Target groups and stakeholder relevance

4.4 Tools and procedures for data collection

4.5 Reporting structure

4.6 Risk management

4.7 Reporting areas

4.8 Reporting documents

4.9 Reporting frequency

Annex A Recommendations specially for small and medium-sized enterprises

Annex B Examples of human capital reports with a combination of metrics

ISO 30414:2018

Implementation

Implementing internal and external human capital reporting in accordance with ISO 30414 involves several key steps.

Here are those steps.

Leadership Commitment

Secure commitment from senior leadership to prioritize human capital management and reporting initiatives.

Scope Determination

Define the scope of human capital reporting, 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 and reporting.

Establishment of Objectives

Define clear objectives for human capital reporting, 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.

Reporting Framework Development

Develop a reporting 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 purposes.

Continual Improvement

Regularly review and update human capital reporting 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 their roles in supporting it.

Documentation and Record-Keeping

Maintain comprehensive documentation of human capital data, reporting 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 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 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 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 practices.