ISO 30414 is an international standard for measuring human resources indicators and improving the quality of an organization’s human resources management. This standard also plays an important role in foreign recruitment. Foreign recruitment has become an important strategy for many companies to recruit internationally minded individuals. In this article, we’ll talk about ISO 30414!

What is ISO 30414?

ISO 30414 is the first set of guidelines for human capital reporting issued by the International Organization for Standardization (ISO) at the end of 2018. ISO 30414 provides guidance on what measures of human capital companies should report internally and what they should disclose. Details on evaluation, measurement and data formatting are included in the standard. This standard also plays an important role in foreign recruitment and has become an important strategy for many companies to recruit talent with an international perspective.

By leveraging ISO 30414, you can define effective HR metrics for foreign recruitment and improve processes within your organization. For example, improving transparency and fairness in the hiring process, enhancing cross-cultural communication, and promoting diversity and inclusiveness are key elements.

Why ISO 30414?

General financial reporting contains little information about the effectiveness of an organization’s talent management and its productivity on revenue and profits. The ISO 30414 Human Capital Reporting Standards improve transparency and fairness in the recruitment process by disclosing a set of internationally recognized indicators, including all talent management areas. And the chairperson of the U.S. Securities and Exchange Commission has said he would like to see more disclosure about how he thinks about human capital for public companies.

The investment community is actively seeking quantitative HR disclosures that evaluate each company’s talent management. “The value of employees is now calculated based on newly released ISO standards for human capital reporting” Deutsche Bank’s February 2019 research report noted, “Our stock screenings detail stocks with strong or weak human capital positions.” BlackRock’s annual letter to the CEO also states that human capital management is one of the top priorities in its dialogue with companies.

ISO 30414 and ESG Investment

ESG is a combination of the acronyms Environmental and Social and Governance, and refers to investing in the environment, society and governance, respectively. The “S” in ESG refers to the social dimension of sustainable investment, which covers a wide range of human capital topics, including diversity in addressing corporate human capital, pay equity, and occupational health and safety.

The ISO 30414 guidelines include all indicators by investors and other stakeholders of a company’s performance and commitment to the human capital aspects of ESG investing.

While the world’s leading companies voluntarily disclose extensive human capital information as part of their environmental, social and governance (ESG) reporting, most organizations report very limited information. In its current human capital report, HCMI estimates that 95% of companies worldwide are unprepared and unprepared to address questions from CEOs, boards and investors about talent risk, return on investment and productivity.

Reference

https://www.hcmi.co/iso-30414-a-beginner-guide#:~:text=ISO%2030414%20provides%20guidance%20on,measurement%2C%20and%20formatting%20of%20data.

The following are some of the effective personnel indicators for foreign recruitment.

Foreigner Hiring Rate:

Shows the percentage of foreign hires to total hires in the organization. This allows you to track the progress of foreign recruitment and assess how well you are achieving your goals.

Foreigner Turnover Rate:

Measures the turnover rate of foreign employees. When turnover is high, there may be an environment or problems that make it difficult to stay, so this is an important indicator to find ways to improve.

Training and development of foreign employees (Foreigner Employee Training and Development):

We evaluate the efforts of foreign employees to improve their skills and career development. Providing a variety of training programs and career paths will contribute to the retention of foreign hires.

Assessing cross-cultural communication (Assessment of Intercultural Communication):

Measures cross-cultural communication skills and facilitates smooth communication between different cultures within an organization.

By properly evaluating these HR metrics and finding ways to improve them, you can maximize your performance in foreign recruitment. By utilizing ISO 30414, organizations will be able to practice effective human resources management in foreign recruitment and increase their international competitiveness.

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