ISO 30414 - A Beginner's Guide Traditional financial reporting contains minimal information on an organization’s talent management effectiveness and productivity in relation to revenue and profit. With the emergence of environmental, social and governance (ESG) investment frameworks and impact investing, there is a growing need for companies to provide more information on the “human capital” dimension of sustainability. The recently released ISO #30414 Human Capital Reporting Standard addresses this deficiency with recommendations for disclosing certain advanced workforce productivity metrics. The U.S Securities and Exchange Commission Chairman also has stated that he “would like to see more disclosure from public companies on how they think about human capital.” This guide provides everything you need to know about ISO 30414 , how to obtain the certification and showcase your commitment to ESG principle. This is what we’ll cover in this guide: FIND OUT WHY GREAT COMPANIES LIKE THESE HAVE CHOSEN US Table of Contents What is ISO 30414? Why ISO 30414 ISO 30414 and ESG Synergy What's in ISO 30414? Our ISO 30414 Certification Process Quick Links ⪢ ISO 30414 Certification ​ ⪢ SEC's New Human Capital Disclosure Requirements ​ ⪢ 5 Reasons to Act Now on New SEC Human Capital Disclosure Rules What Is ISO 30414? What is ISO 30414? The ISO 30414 is the first-ever set of guidelines for human capital reporting released by the International Organization for Standardization (ISO) at the end of 2018. ISO 30414 provides guidance on the human capital metrics companies should report internally and those they should disclose publicly. The standards include details on the evaluation, measurement, and formatting of data. The main purpose is to make the contribution of human capital to the business more transparent to investors. The U.S. Securities and Exchange Commission (SEC) announced on August 26, 2020 that it adopted new Human Capital Disclosure Requirements for public companies reporting/listing on the U.S. exchanges, making ISO 30414 much more relevant for companies committed to ESG principles. Why ISO 30414? Why ISO 30414? Traditional financial reporting contains minimal information on an organization’s talent management effectiveness and productivity in relation to revenue and profit. The recently released ISO 30414 Human Capital Reporting Standard addresses this deficiency with recommendations for disclosing an international recognized set of metrics that covers all talent management areas. Scroll down to see a more detailed list of areas that ISO 30414 covers. ​ The U.S Securities and Exchange Commission Chairman also has stated that he “would like to see more disclosure from public companies on how they think about human capital.” ​ The investment community has been actively seeking additional HR insights to assess how companies are managing their most important asset - their talent. They are now pointing to the ISO standard as a guideline for information. As noted in a February 2019 research brief by Deutsche Bank: “The value of employees will now be calculated under the new-released ISO standard on Human Capital reporting” and “our stock screens detail those stocks in a strong and weak Human Capital position.” BlackRock’s annual letter to CEOs also stated that human capital management is among its top priorities when engaging with companies. ISO 30414 And ESG Synergy ISO 30414 and ESG Synergy The “S” in ESG investing stands for the Social aspect of sustainable investing, which includes a company’s strengths and weaknesses in dealing with human capital. This covers a wide range of human capital topics including but not limited to workforce diversity, pay equality and occupation health and safety. This is where the synergy between ESG investing and ISO 30414 shines. The ISO 30414 guideline contains all the metrics that investors and other stakeholders need to better measure, track and benchmark the company's performance and commitment to the human capital aspect of ESG investing. This guideline will also help U.S. listed companies meet the Securities and Exchange Commission's recent rule changes on human capital disclosure requirements. ​ While a few global companies have voluntarily disclosed extensive human capital information as part of their Environment, Social and Governance (ESG) reporting, most organizations report very limited information. HCMI estimates that 95% of global companies fall short on Human Capital Reporting today, and are unprepared for CEO, Board, and Investor questions on talent risk, ROI, and productivity. What's in ISO 30414? What's in ISO 30414? The ISO 30414 guideline includes 58 metrics divided into 11 main categories. You can purchase the complete guidelines with metric definition and formula on ISO's online store. ​ Compliance Number and type of grievance filed Training hours on compliance and ethics External dispute resolutions Number, type and source of external audit Findings and actions arising from these ​ Workforce Costs Total workforce costs External workforce costs Ratio of the basic salary and remuneration for each workforce category Total costs of employment Cost per hire Recruitment costs Turnover costs ​ Diversity Workforce diversity with respect to age, gender, nationality, disability, job family, job level/hierarchy, qualification, diversity of leadership team ​ Leadership Leadership trust Span of control ​ Leadership Development Percentage of leaders/talents who have formal mentors or coaches Percentage of leaders who have the formal function of mentors or coaches ​ Occupational Health and Safety Lost-time for injury Number of occupational accidents Number of people killed during work (fatality, death or mortality rate) Training hours on health and safety at work vs. total amount of training hours Number of employees who participated the training/total numbers of employees Organizational Culture Engagement, satisfaction, commitment Retention rate Productivity - revenue, turnover, profit per employee Human capital return on investment ​ Recruitment, Mobility and Turnover Number of qualified candidates per position Quality per hire Average length: time to fill vacant positions; time to fill vacant critical business positions internal/external Transition and future workforce capabilities assessment Percentage of positions filled internally Percentage of critical business positions filled internally Percentage of vacant critical business positions in relation to all vacant positions ​ Employee Bench Strength Turnover rate Involuntary turnover rate Involuntary critical turnover rate Voluntary turnover rate (without retirement) Exit/turnover reasons/leaving employment by reason ​ Skills and Capabilities Total developing and training costs Learning and development information Internal mobility rate Workforce competency rate Succession planning ​ Workforce Availability Absenteeism rate Full-time equivalents Number of employees Contingent workforce; independent contractor; temporary workforce Number of full-time and part-time employees ISO 30414 Certification Our ISO 30414 Certification Process Our ISO 30414 certification process can be generally broken down into 5 big steps: ​ Step 1: Assess current human capital risk disclosures vs. ISO 30414 guidelines Step 2: Identify potential disclosure gaps Step 3: Evaluate enterprise data availability and system reporting capabilities to determine which metrics to include in internal and external reports Step 4: Certification audit Step 5: Monitoring and re-certification audit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Find out more about our HR Consulting Services Interested in Getting Certified with ISO 30414? 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The Window Into Your Workforce SOLVE™️ helps you make data-informed decisions on workforce performance, spending, value, and risk. Watch SOLVE™ quick walkthrough video below Learn More Workforce Intelligence & Management Solutions Business Analytics for Human Capital Management SOFTWARE SERVICES SOLUTIONS Forecast Smarter Workforce Spending Learn More SOLUTIONS Benchmark Workforce Productivity and Cost Learn More Improve Performance, Recruiting, Retention & More Learn More OUR CLIENTS See Client Successes Analytics-as-a-Service Learn More SERVICES Human Capital Financial Statements Learn More Workforce Analytics and Planning Training Learn More 1. What are workforce intelligence solutions? Workforce intelligence provides analytical tools designed to help companies optimize their workforce, reduce labor costs, and increase productivity. By automating manual processes and having real-time insights into workforce data, workforce intelligence gives dynamic, data-based solutions to help businesses make smart decisions about workforce planning and management. 2. What are the core functions of workforce intelligence software? Core functions of workforce intelligence softwares like SOLVE™ include, but aren’t limited to: Identifying areas with cost savings potential, forecasting workforce trends, tracking employee performance metrics and ensuring compliance with labor regulations. 3. How can HCMI's workforce analytics benefit my organization? Our workforce analytics software can help your organization by identifying patterns, trends, and opportunities for improvement in areas like employee performance, retention, diversity & inclusion, productivity, etc. These insights can further help you make informed decisions to optimise your workforce, reduce costs, and drive better business decisions. 4. What industries does HCMI serve? Our expertise includes serving a diverse range of industries, including finance, healthcare, retail, technology, manufacturing and more. At HCMI, our solutions are designed to cater to the unique challenges faced by workforce in different companies across various sectors. 5. How do you help organizations to improve their workforce planning? Our workforce planning solutions enable organizations to predict future hiring requirements, identify skill gaps, and also to develop strategies that can close those gaps. The SOLVE software can help by aligning workforce plans with business objectives to ensure that a company always has the right talent in place to achieve success. 6. How does your software ensure data security and privacy? SOLVE uses industry standard security measures including secure FTP and SSL (secure sockets layer), which provides a 128-bit encrypted link between the user’s web browser and the SOLVE Servers. Plus, SOLVE stores no PII (personally identifiable information) and uses approved employee ID numbers to protect non-personal data and meta data (data about data), adding an extra layer of data protection and security. 7. Can your software be integrated with our existing HR systems? Yes, HCMI's software is designed to seamlessly integrate with a variety of HR systems, so you can leverage your existing data while we streamline your organization’s human capital management processes. 8. What is the implementation process for HCMI's software solutions? The process starts with an initial consultation to understand your organization's specific needs. This is followed by the customization and integration of our software with your existing systems. We also provide training as well as ongoing support to ensure a smooth transition for your employees. 9. What kind of customer support does HCMI provide for its clients? Our clients are fully supported by a team of workforce analytics experts, and HCMI's tech support professionals guarantee 97% system uptime. With a SOLVE subscription, you will have access to an expert analytics consultant, assisting part-time and actively working with you to identify powerful “did you know” insights. We will help you drive the most value from your SOLVE implementation.

Solutions Overview Blog & ViewPoint Blog posts, ViewPoints, and thought leadership on human capital management, workforce management, workforce analytics, and human resources. Redefining Talent Acquisition: The Comprehensive Shift to Skill-Based Hiring 32 Tackling the Future of Workforce Planning with Generative AI and SOLVE™️ 64 Data-driven Workforce Planning: A Solution in Times of Tech Industry Layoffs 54 Navigating the Challenges of Workforce Planning in 2024 235 Revolutionizing Recruitment in the Digital Age 58 The Art of Effective Workforce Management 45 Why ‘Embracing Diversity’ is More Than Just a Buzzword 47 HCMI featured on Geeks, Geezers & Googlization Show - Human Capital Management Disclosure 126 HCMI CEO, Jeff Higgins, Presents at Paychex Thrive Business Conference 186 Most U.S. Companies Favor SEC’s Proposed Proxy Rule Changes 37 SASB Standards Board approves the Human Capital Research Project 59 Chairman Jay Clayton's Remarks at Financial Centres Summit 25 How and Why Human Capital Disclosures are Evolving 101 Showcase for a Data-Driven HR: Understand the Business Impact of Employee's Attrition 101 SEC May Soon Require Human Capital Reporting 37 More Signs That HR Field Will Seize Human Capital Opportunity 37 Lifting the Lid on the Value of a Company’s Human Capital 38 Stop Making Workforce Spending Decisions Blindly: Link People Investments to Business Outcomes 406 HR Reporting: An HR Equivalent of Financial Statements 250 An HR Leader’s Dream Come True: Human Capital Financial Statements 139 Top 5 Reasons You Need Human Capital Financial Statements 135 How Workforce Analytics is Like the Human Body 74 There is No “1 Magic Metric” 83 Do Companies See the Overall Picture When Relocating Jobs? 57 Talent Management: Now that You’ve Adopted it, Can You Measure it? 49 Workforce Productivity Quantified 118 Is Increased Workforce Productivity Sustainable? 30 The TCOW: Mooing Towards Improvement 118 Which is the Most Spoken Language in the World? 27 The Tale of Three Mobile Manufacturing Companies 48 Getting into the Swing of Analytics 33 Featured in CFO Magazine, HCMI CEO Discusses the Value of Human Capital Disclosure 80 HCMI Featured in the Latest Edition of Drake Business Review 57

White Papers Human Capital Disclosure Statement Introducing the Human Capital Disclosure Statements, a reporting framework that captures and quantifies key information about your human capital and its business impact, allowing users to make workforce management decisions that are both sustainable and optimized. Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

White Papers Linking Human Capital to Business Performance You can’t afford to miss this one! Our broad-reaching white paper lays out detailed analysis and evidence to support the conclusion that human capital metrics can successfully predict public company stock price changes (i.e., performance). Highlights of the white paper: Learn the correlation between select HC metrics and stock price. Covers 22,000 companies over 16 years and 6 HC metrics. Breakdown of specific industries and how they’re affected. Discover how Total Cost of Workforce(TCOW) is superior to traditional headcount metrics. Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

Case Studies The Financial Impacts of Wellbeing on Workforce Productivity Organizations publicly extol their people as their most valuable asset. However, measuring the precise financial return of human capital investments on the bottom line has proved to be an elusive goal. The Human Capital Management Institute (HCMI) outlines the research linking companies who invest in Virgin Pulse wellbeing programs to significant financial returns in the form of workforce productivity gains, lower attrition rates, and fewer days lost to illness. Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

White Papers Explore HCMI thought leadership producing real ROI and competitive advantage through smarter workforce spending and better talent management 8 Steps to Critical Workforce Planning in Uncertain Times This updated whitepaper outlines the 8 critical steps you can take to build your own workforce plan. Download The War for Talent in the Tech Industry: Leverage External Data to Win A case study on leveraging external labor market data to win the talent war. Download Top 20 Requirements for A Workforce Analytics, Planning & Market Intelligence Solution Read the top 20 requirements for Workforce Analytics, Planning & Marketing. Download 2020 Workforce Productivity in the North American Banking Sector This summary report is a high-level workforce productivity and return on workforce benchmark analysis that includes historical performance trending and comparing workforce productivity of 41 of the top 50 North American Banks. Download 8 Steps to Workforce Realignment Planning in Uncertain Times This eBook outlines the 8 critical steps you can take to build your own workforce realignment plan. Download Examining HR Analytics Through the Lens of Finance This eBook provides HR and business leaders with a starting point for delivering actionable business insights into the talent investment side of their organizations. Download The Top 25 Questions to Boost Your Workforce Analytics To help companies make sense of all the available data, HCMI has put together a list of the top 25 most important human capital questions that all HR leaders should be asking. Download Human Capital Financial Statements HCMI’s Human Capital Financial Statements (HCF$) provide a standard means with which to measure, report and disclose a company’s human capital. Download Linking Human Capital to Business Performance White Paper - Summary Key findings of our comprehensive research on the linkage between Human Capital metrics and company financial performance. Download Linking Human Capital to Business Performance This research whitepaper provides evidence to support the conclusion that human capital metrics can successfully predict public company stock price change. Download Total Cost of Workforce (TCOW) While human capital costs may vary, they remain the single biggest organizational expense. This white paper sheds light on the Total Cost of Workforce and how you can be ready to manage it. Download Top 5 Metrics for Workforce Analytics This white paper will help address this issue by outlining the top 5 key human capital metrics and how they can help make sense out of the challenges and confusion of economic downturns and growth cycles. Download Human Capital Disclosure Statement Introducing the Human Capital Disclosure Statement, a reporting framework that captures and quantifies key information about your human capital and its business impact. Download

solve overview Human Capital Metrics Handbook Definitions, formulas, and best usage advice for over 620 workforce metrics including many best-in-class measurements into one convenient package. It's the offline version of SOLVE™️ Metrics. The Ultimate HR Metrics Guide This is a must-have guide for all professionals interested in implementing evidence-based talent management or even just upgrading their HR reports. Why Human Capital Metrics Handbook STANDARDIZE HR METRICS Remove confusion and countless back-and-forth by giving everyone access to the same HR metrics handbook. ALL-IN-ONE METRICS GUIDE Comprehensive list of metrics from all talent management function. ALL TALENT MANAGEMENT AREAS Whether it’s recruiting or training, chances are the metrics you are looking for are already covered by this guide. Inside Human Capital Metrics Handbook Human Capital Metrics Handbook is just not a detailed compilation of HR measurement names and definitions. It comes with detailed descriptions, formulas, common usage and best practice advice on metric interpretation and application from HCMI's team of experts. Metrics are measured across all elements of the employee life cycle and are broken down by 11 most commonly and best/optimized use. Key example areas include: Cost, Revenue and Profit Optimization Recruiting and Hiring Training ​ Leadership and Development Engagement Productivity and Performance Compensation and Benefits Mobility and Career Development Human Capital Metrics Handbook, in Numbers... Unlock Actionable HR Insights. This guide is an indispensable tool for professionals aiming to refine strategies and enhance analytical capabilities, ensuring every decision is informed and impactful. ​ For $825 , including US shipping, this handbook is your gateway to actionable insights. For international shipping, please contact us here . Secure Your Copy Here Ready to Talk? Get in Touch or Schedule a Demo Reach Out to Us

Case Studies Optimizing Recruiting Sources Scofield Financial (pseudonym) is a mid-sized, regional financial services company whose high turnover rates were reducing much of their recruitment to replacement efforts. In partnership with HCMI, Scofield was able to identify and target the best sources of hire, and make specific recommendations and adjustments by job type. Read the answers to questions like: Which recruiting sources were Scofield’s most reliable sources of top talent? Where is Scofield getting the highest percentage of high performers? Where are they getting more bad hires and early leavers? How can current recruiting sources be improved? Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

White Papers 8 Steps to Workforce Realignment Planning in Uncertain Times Whether it’s juggling a remote workforce or realigning the business to stay afloat during this unprecedented event, you need to move fast while avoid missteps that could cripple your business performance during the recovery. Wouldn't it be great to have a workforce realignment plan to achieve this? This ebook outlines the 8 critical steps you can take to build your own workforce realignment plan. Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

Case Studies Sales Training ROI Imperial Services Corp, a global firm, had experienced a plateau in annual sales volume, and needed to better understand what correlated same-store sales and the overall top line. Analyzing multiple factors across a half decade of workforce data, HCMI helped to determine how various factors like experience, manager quality and training influenced productivity for different stages of the sales associate career path. In this business case, learn more about how: Different talent and organizational factors correlated to sales production Notions of experience driving performance and productivity were debunked Training programs impacted individual productivity in different geographies and channels The analysis project generated an ROI opportunity of $180 million Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In

Case Studies Human Capital Financial Statements Human Capital Financial Statements (HCFS) provide a standard means with which to measure, report and disclose a company’s human capital. Learn more about how a large publicly traded Asian telecommunications company using HCFS, registered significant 2 year productivity gain over peers by optimizing their Total Cost of Workforce (TCOW). Download Please create an account to view downloads: Sign Up If you already have an account, please log in: Sign In