Key HR Measures for Public Disclosure€¦ · 12.4 million businesses with >1 employee Trading...

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Key HR Measures for Public Disclosure Human Capital Reporting for Internal & External Stakeholders Marianne Parry 2018 CTR Annual Conference February 22, 2018

Transcript of Key HR Measures for Public Disclosure€¦ · 12.4 million businesses with >1 employee Trading...

Page 1: Key HR Measures for Public Disclosure€¦ · 12.4 million businesses with >1 employee Trading approximately 1.46 billion shares each day, the New York Stock Exchange is the leading

Key HR Measures for Public DisclosureHuman Capital Reporting for Internal & External Stakeholders

Marianne Parry

2018 CTR Annual Conference February 22, 2018

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WelcomeMarianne Parry

Human Resources Business Partner

Deutsche Bank Joined Deutsche Bank’s

Global Standards for Human

Resource Management

Team in 2011, representing

the United States

[email protected]

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Agenda

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Human Capital Reporting

Background

Key HR Measures

Current Status

Questions

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American National Standards for Reportable Human Capital

However, U.S. stakeholders at the time opposed this effort and the

project ended. But in 2011, things changed

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In 2009 the Society for Human Resource

Management in conjunction with the American

National Standards Institute established a body

of experts who explored the development of an

American National Standard for Reportable

Human Capital.

Background

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Leadership

Dr. Stefanie Becker - Convenor Working Group Human

Capital Reporting, HR Strategy & Planning, Chief Operating

Office HR, SAP SE

Mr. Hilger Pothmann – Deutsche Bank Lead Sponsor

Lee Webster, Secretary, ISO Technical Committee 260

Human Resource Management

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with

Experts from

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Key Achievements

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2011: Initiated by Lee Webster, ISO launched the establishment

of ISO Technical Committee 260 'Human Resource

Management' Discussion: "Minimum effective standards"

Jun 2015: The German mirror committee to ISO, DIN, submitted

to ISO an application for Human Capital Reporting for

Internal / External Stakeholders to be standardized for

international reporting

Oct 2015: ISO TC 260 Approved this submission

Nov 2015: Dr. Stefanie Becker officially launched the new work item

proposal on Human Capital Reporting for Internal &

External Stakeholders with 8 other represented countries.

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Committee Structure

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Reference Title

ISO/TC 260/CAG Chairman's Advisory Group

ISO/TC 260/CPT Communications Project Team

ISO/TC 260/TG 1 Business Plan Task Group

ISO/TC 260/TG 3 Sustainable employability

ISO/TC 260/WG 1 Terminology

ISO/TC 260/WG 2 Metrics

ISO/TC 260/WG 4 Workforce management

ISO/TC 260/WG 5 Recruitment

ISO/TC 260/WG 6 Knowledge Management

ISO/TC 260/WG 7 Human Capital Reporting

ISO/TC 260/WG 8 Diversity and inclusion

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ISO Technical Committee 260

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Terminology

HR

Governance

Workforce

Planning

Recruiting

Knowledge

ManagmentImpact of Hire

Human Capital

Reporting

Diversity &

Inclusion

Workforce

Management

Assessment

of People Pt1

Candidate

Experience

Employee

Engagement

Completed (8) In Progress (9) Planned (2)

Human Capital Reporting project was initiated in 2015 via DIN under German management

Human Resource Management is responsible for these voluntary documents:

Sustainable

Employability

Cost Per Hire

Assessment

of People Pt1

Assessment

of People Pt2

Assessment

of People Pt2

Quality of Hire

Retention /

Turnover

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Countries Involved

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Participating Members (31)

▪ Australia (SA)

▪ Austria (ASI)

▪ Bahrain (BSMD)

▪ Barbados (BNSI)

▪ Belgium (NBN)

▪ Canada (SCC)

▪ Cyprus (CYS)

▪ Finland (SFS)

▪ France (AFNOR)

▪ Germany (DIN)

▪ India (BIS)

▪ Iran, Islamic Republic of (ISIRI)

▪ Israel (SII)

▪ Italy (UNI)

▪ Lithuania (LST))

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▪ Malaysia (DSM)

▪ Netherlands (NEN)

▪ Nigeria (SON)

▪ Norway (SN)

▪ Pakistan (PSQCA)

▪ Portugal (IPQ)

▪ Romania (ASRO)

▪ Russian Federation (GOST R)

▪ Serbia (ISS)

▪ Slovenia (SIST)

▪ Spain (UNE)

▪ Sweden (SIS)

▪ Turkey (TSE)

▪ United Kingdom (BSI)

▪ United States (ANSI)

▪ Zimbabwe (SAZ)

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Observing Countries (22)

▪ Bhutan (BSB)

▪ Bolivia, Plurinational State of

(IBNORCA)

▪ Bulgaria (BDS)

▪ Congo, The Democratic Republic of

the (OCC)

▪ Czech Republic (UNMZ)

▪ Ghana (GSA)

▪ Indonesia (BSN)

▪ Ireland (NSAI)

▪ Japan (JISC)

▪ Korea, Republic of (KATS)

▪ Lebanon (LIBNOR)

▪ Mongolia (MASM)

▪ Montenegro (ISME)

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▪ New Zealand (NZSO)

▪ Poland (PKN)

▪ Senegal (ASN)

▪ South Africa (SABS)

▪ Sri Lanka (SLSI)

▪ Switzerland (SNV)

▪ Thailand (TISI)

▪ The Former Yugoslav Republic of

Macedonia (ISRM)

▪ Viet Nam (STAMEQ)

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Why Standardize Human Capital Reporting?

Investors are HR stakeholders

Investors want to analyze the future of companies

Employees impact intangibles

Employee capability drives intangibles

Intangibles impact market value

HR lacks global Standards

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Global Human Capital Reporting Standards provide a

benchmark for company‘s long-term capabilities and

human potential for sustainable growth.

Defining a framework of measurable Human Capital

Reporting Standards for Internal & External

Stakeholders:

Facilitates the ability of an organization to better

manage its people, and its processes

Better predicts future states of an organization,

Leading to better ability to manage and predict

shareholder value

?

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Why HCR is Important

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Increase of interest of External

Stakeholders (investors) for intangible

assets (human capital)

People make the difference!

In comparison to financial reporting,

no standards for HC Reporting exist

inability to benchmark

Noticeable increase in strategic

relevance of HC Reporting (internally:

more data-driven decisions like people

analytics; externally: investor benefit of

transparency)

Legal requirements

But WHY and HOW do you measure it?

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HC Reporting & Investors Investors and Capital Market

Correlation between market value and

return of listed companies is barely

relevant.

Consequence: realistic valuation of

equity and debt capital is difficult

Investors / lenders want to know to

what extent processes and structures

of an organization - especially when

employing personnel - are geared

towards ensuring future viability, in

other words sustainably generating

profit and growth

Intangible corporate values become

visible and therefore assessable

through Human Capital Reporting

* Stock index, which includes the shares of 500 of the

largest listed US companies

In the US alone there are approximately

12.4 million businesses with >1 employee

Trading approximately 1.46 billion shares each day, the New York Stock Exchange is the

leading stock exchange in the world. The exchange trades stocks for some 2,800 companies,

ranging from blue chips to new high-growth companies

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HCR Recommendations

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InternalExternal

Human

Capital

Reporting

(HCR)

Identification of HR Activities strengths & weaknesses

Sustainable improvement of HR activities

More data-driven decisions (connection to finance)

Transparency of peoples‘ value contribution

Ability to benchmark Human Capital on an international scale

Inclusion of Human Capital Risks & Opportunities

Information about how companies will achieve future growth

Comparisonbetween employers and working conditions (culture, career & development opportunities)

Transparency about future stability of the organization

Understand people related opportunities and risks

Better understand how organizations handle their people

Transparency about peoples‘ value contribution

Guidance to fulfill legal requirements

Transparency on Human Resource Policies Strengths & Weaknesses

Opportunity to invest capital

Data-based decision making

Comparable benchmarks about Human Capital on a global scale

Ensure future safeguarding

Check strategy fit (HR activities and corporate strategy)

Capital

Market

Potential

Employees

Society

Policy

Gov’t

Employee

/ Workers

Council

Management

Human

Resources

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HCR Process

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Establish Guiding Principles:

Focus on HC Area Metrics aligned to

Organization’s Leadership Direction

Ensure relevance to Organization

Sector, Type, Size

Transparency of Reporting

Identify Target Groups & Stakeholders

Define Data Collection Tools & Process

Reporting Structure – distinguish between

Internal & External Reporting w/relevant Metrics

Risk Management - include risks & opportunities

for each reported area

Report Quantifiable Metrics to relevant HC

Issues

Reporting Document – identify suitable reporting

document that can be used for internal &

external reporting (HR Report)

Inputs ActivitiesOutputs /

Outcomes

People Investment Employee-Life-Cycle People Outcomes

HCR Guidelines based on traditional HCR Framework comprised 3 Components:

Report at regular frequency

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HC Reporting Framework

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Key HR Measures

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Key HR Measures 1 of 5

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Key HR Measures 2 of 5

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Key HR Measures 3 of 5

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Key HR Measures 4 of 5

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Key HR Measures 5 of 5

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Current Status

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June 2017: WG7 completed first draft of ISO Standard 30414

Nov 2017: TC 260 approved the draft of ISO Standard 30414

for international review & comment

Jan 2018: International comment period open thru April 3rd

Spring 2018: Review of comments in preparation of the Final

Draft International Standard (FDIS) 30414

Summer 2018: Publication of Draft International Standard (DIS)

30414

Fall 2018: Publication of ISO Standard 30414

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Your Opinion Matters

You can influence this

standard’s development

This draft is available for your

viewing / public comment at:

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https://isostandards.utmb.edu/highe

rlogic/ws/public/document?documen

t_id=7850&wg_abbrev=ustagtc260

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Helpful Links

▪ Learn more about standards

▫ https://www.standardslearn.org/

▪ Learn more about ISO

▫ https://www.iso.org

▪ Learn more about TC 260

▫ https://www.iso.org/committee/628737.html

▪ Learn More about ANSI

▫ https://www.ansi.org

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Other Questions or How to Join US TAG for TC 260

Lee S. Webster

Director, Standards Development

Secretary, ISO Technical Committee 260 Human Resource Management

Secretary, US TAG for TC 260, Healthcare Management Institute (HMI)

University of Texas Medical Branch

Shearn - Moody Plaza, #7157

Galveston, TX 77554

(409) 772-0830 Office

(703) 867-0721 Cell

[email protected]

http://hmi-online.org

www.utmb.org

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