Human Capital Reporting – Compliance or Value add?

What does all of this mean? Well, it means we will have uniformity of formula and methods of measurement for each of the metrics in 30414.

So, rather than looking at Human Capital Reporting as a burden and a compliance issue, organizations can gain incredible value in using 30414. It is possible to continuously gain greater insight and comparative information about an organization. The result we all would enjoy is improved productivity and delivery of organizational objectives.

I’m often startled by the number of workforce reports, measures, and spreadsheets presented at various levels in organizations. Now data and metrics are presented in dashboards for ease of viewing.

One of the big problems with this, though, is the variation of formula, timing, and the validity of the data source. Most reports are typical of a snapshot in time and don’t explain the context behind the numbers or activities. The other big issue with Human Capital Reporting is it is continually internally focused.

While 30414 may not be perfect in everyone’s eyes, it certainly does give organizations a consistent data set, definition, formula, and purpose on which to base measurement. This level of consistency means, for the first time, meaningful comparative information can be analyzed by industry sector, organization size, country, and location to name a few of the ways to “slice and dice” data.

Services are now offered to organizations to compare their crucial metrics with other organizations of interest. For example, a mid-sized company in Texas may anonymously enter their 30414 parameters and seek comparisons against other similar organizations in their region or country. They may want to compare themselves to larger organizations in their industry sector.

You can’t manage and improve what you can’t compare whether that be an internal comparison over time or external comparison of like organizations.

For instance, an organization may believe it is performing well as profits are good and growth is steady. However, in comparison, they may discover that the Industry turnover for their sector sits at 6.5% while theirs is 10%. This simple comparison should trigger further investigation. It may well prove an excellent source of reduced costs, improve productivity, and improved engagement with workers.