ISO Publishes New Standard Aimed at Optimising Human Capital in Business.
We’ve said time and time again that your staff are one of the most important puzzle pieces whilst assembling your business. ISO’s new standard looks set to consolidate their operations, and their productivity.
Governing body ISO has released a new standard aimed at optimising the way businesses monitor their staff’s human capital input into the business, giving management a clear overview of its staff’s contributions.
In essence, the new standard – ISO 30414 – is aimed at measure your staff’s efforts into the business, and provides a framework to quantify the return on investment. This is set to improve the efficiency of businesses world wide, as they’ll now be better equipped to see how much human capital is being invested in specific areas of the business, and management and the executive team will be more capable to see how worthwhile of an investment their efforts are, in that specific area.
As ISO states in their press release, “it is well known that effective human resources strategies can have a positive impact on organizational performance. And with workforce costs making up to 70% of an organization’s expenditure, it is important to get that strategy right.”
This is where ISO 30414, Human resource management – Guidelines for internal and external human capital reporting steps up to the plate, and is sure to make a great difference in the way you monitor a variety of your staff’s outputs, and the fruits of their labour.
The standard can be utilised in any industry, regardless of size and scope of operations, and provides guidelines on key areas of your human resources team such as productivity, leadership, recruitment and turnover, organizational culture, as well as the health and safety of your staff.
Chair of the ISO technical committee, Dr Ron McKinley says that ISO 30414 will assist businesses to get a clearer picture of their business, as well as optimise staff member’s contributions to the business’ profitability.
“Workforce reporting is about rethinking how organizational value should be understood and evaluated, and allowing for more data-driven decision making across workforce management.”
One of the exciting things about the standard is that it looks set to streamline the way an executive team delegates tasks and responsibilities. With a more effective means of looking at the business, you’ll be able to move staff away from tasks that are swallowing up hours of their precious time that are providing little benefit to the business.
Running counter to this, you’ll be able to strengthen up areas of your team that might need an investment of human capital in order for them to meet their goals, and the wider goals set by the organisation.
The standard’s authors also say policy makers and governments stand to benefit from the implementation of a standard like ISO 30414, “by acquiring greater knowledge of human capital development in their country’s organizations in relation to others, which is important for political labour market initiatives.” ISO said.
“What’s more, by providing a number of relevant key metric that are recognizable on an international scale, multinational companies can more easily transfer human capital information, better control their international HR activities and providing greater transparency for all their stakeholders.” Dr McKinley said.
“But the standard is not just for multinationals. Organizations of all sizes, including small and medium-sized companies can benefit from being able to choose the metrics that are most relevant to them.”