The International Organization for Standardization (ISO) recently passed its first-ever standard for voluntary human capital reporting! This is a very big deal for the HR profession – as well as for those investors who have increasingly demanded information on the “people side” of business.
The standard includes guidelines for large, medium, and small organizations, and for internal and external reporting. So there’s really something in it for everyone.
The core Human Capital reporting areas covered by the standard include the following:
· Compliance and ethics
· Organizational culture
· Organizational health, safety, and well-being
· Recruitment, mobility, and turnover
· Skills and capabilities
· Succession planning
· Workforce availability
The emergence of this ISO standard is a manifestation of the growing demands for better management, accountability, and transparency. These demands – which are the inevitable result of the increasing role that human capital plays in the creation of economic value – will only continue to grow in the coming years.
We believe this is good news for those HR professionals and employers who have a good story to tell. But there is no getting around that this is not a happy development for others who would prefer to be able to keep stakeholders in the dark regarding their “people track record.” So, while not a universally positive development for everyone, it is certainly one that will benefit the “good guys.”
Give the new ISO standard careful consideration. There are likely to be components of it irrelevant to your organization (at least currently). But there is something beneficial for every type of organization – including yours – in this broad new standard.
McBassi can help
you understand what the new ISO standard means for you and your organization.