Human capital spending
• Direct total compensation costs.
• Costs of third-party employees.
• Training and development spending.
• Headcount and full-time equivalent employees.
Ability to retain talent
• Voluntary turnover rate by major job categories (such as senior executives, mid-level managers, professionals, technicians and sales workers).
• Total turnover rate by major job categories.
Leadership depth
• Percentage of leadership positions where there is one or more qualified and available successor.
• Percentage of leadership positions filled internally during the last fiscal period.
Leadership quality
• An index based on results from an employee survey covering topics such as leadership’s vision, alignment, drive for success, collaboration, innovation and competence.
Employee engagement
• An index based on results from an employee survey covering topics such as goal setting, support, development, work processes and commitment.
Human capital discussion and analysis
• Narrative to provide context on the reported human capital metrics.
• Disclosure of risks related to human capital.
Next Step
The second draft was released in early October and is now in a 45-day public review and comment period. Barring any significant changes, the task force will put the standards to a formal vote and submit them for approval to the American National Standards Institute, a nonprofit group that oversees standards across multiple industries. To find out more, visit www.shrm.org/hrstandards.
Source: “Guideline for Reporting on Human Capital to Investors,” ANSI/SHRM Draft American National Standard, Oct. 5, 2012.
