ISO 30414:2018 pdf download – Human resource management — Guidelines for internal and external human capital reporting.
4.2 Guiding principles The following guiding principles apply: a) strategic focus and materiality of human capital metrics that are consonant with the organization’s strategy and values; b) an approach that is practicable to the organization’s operating model and external context, based on a cost benefit comparison including opportunity cost (e.g. time, quality, volume) analysis (financial and/or non-financial value); c) relevance for organizations of all types, sizes, sectors and geographic locations; d) valid and reliable evidence-based measures and the integration of high-quality data to provide insight that informs business decision making; e) comparability of reported metrics across similar organization types and sectors (see 4.5.2); f) HCR narrative based on the concept of materiality that identifies the important aspects for the organization and its internal and external stakeholders (see 4.9); g) transparency of reporting that clearly identifies human capital risks and opportunities to key governance bodies and stakeholders. It is useful and advisable to ensure that established good practice on information, communication and consultation between management and workforce representatives is respected and protected during HCR and the implementation of any related changes. NOTE Additional guidance on involvement of employee representatives is given in ISO 45001:2018, 5.4 [5] . 4.3 Target groups and stakeholder relevance Given the diverse interests of the multitude of stakeholders of an organization, these guidelines consist of a common set of metrics (for human capital), with relevance for internal and external stakeholders. With increasing investment in human capital and its potential impact on organizational performance, sustainability and future viability, there is increasing interest in human capital measurements among internal and external stakeholders.
Internal stakeholders include the workforce and their representatives, corporate governance bodies (e.g. top management, supervisory boards, board members). External stakeholders include individuals looking for employment, the community and investors who also have an interest in external HCR. Investors are particularly interested in using strategic human capital metrics that can help to determine the relationship between human capital investment and the impact on the success of the organization. A HCR framework discloses financial and social value creation by an organization and provides evidence of underlying strengths or risks that might otherwise be overlooked in conventional headcount reporting. Figure 1 gives an overview of the elements of HCR. The figure includes the context in which the organization operates with consideration given to the macro, meso and micro elements influencing HCR.