The above title is typically the first question that boards, CEOs, and Executives ask. In response to this question, I like to pose some initial questions myself.
How confident would Investors, Financiers, Regulators, Boards, Executives and Employees be in any business’s financial viability if there was no financial conformance? How would the world work if each organisation could define profitability, depreciation, cost of sales, etc.?
In most organisations, workforce costs are the single most significant cost. To this point, the SEC has recently announced the mandatory requirement for Human capital reporting as of the fourth quarter of 2020.
ISO Human resource management standards represent the first dedicated focus on conformance when discussing workforce activities. Workforce terms are defined, including workforce data points, formulae and calculations. Another key benefit is a recommendation of the workforce reporting requirements needed to benefit stakeholders.
ISO 30414: 2018 Human resource management – Guidelines for internal and external reporting (ISO 30414) is the International standard gaining significant notoriety globally.