Human Capital Reporting

Why is standard like this necessary?

Clearly, the reason is the increased importance of human capital for organizations. Whereas in 1975 the share of intangible assets in the market value of the S&P 500 file index was only 17 %, over the years it has risen to 84 %. Employees are a major source of intangible assets, but until now there has been no uniform approach to measuring and evaluating personnel-related value creation. ISO 30414 eliminates this problem, which will benefit not only the organizations themselves but also many of their stakeholders.

ISO Press release
ISO shop
Publication CFO Magazine September 2019

Which benefits does ISO 30414 offer organizations and their stakeholders?

The possibilities of use for organizations are various due to this standard! Even though people and HR analytics are on everyone's lips these days, many people forget that the actual groundwork has to be done first in order to be able to carry out these analyses. This includes the collection of a clean database and the design of an appropriate framework of indicators. Human Capital Reporting makes a real contribution to this and offers organizations the opportunity to move towards a more key figure-driven decision-making process in all HR areas. In addition, through external and public reporting of HR metrics, organizations can meet the growing requirements of investors or other stakeholders by providing additional information about the resource "employee".

Is the voluntary guide applicable to all organisations?

A clear yes. ISO 30414 provides practical answers by providing recommendations for reporting for organizations of all types and sizes. For each of the eleven core reporting topics, the guideline contains an associated set of indicators and explains why an indicator is important, for what reporting purpose it should be used, how the indicator is specifically defined, how it can be calculated and illustrates a possible reporting example. The reporting portfolio contains a total of 58 metrics. Since it is a voluntary guideline, the user himself decides which of the offered metrics make sense in his organization. Public reporting is also voluntary and not mandatory. We already have information from German medium-sized and larger DAX companies that they will use this guideline for their annual reports in the future.