How to Comply with Human Capital Reporting Rules Today

How to Comply with Human Capital Reporting Rules in 3 Steps

Guest article from John R. Mattox, II, Ph.D., Action Learning Associates

People drive value for organizations, now more than ever. 

Too many managers and leaders struggle with quantifying that value. They do not know how to create competitive advantage. Do you know the VALUE of your Human Capital?

Dave Vance, the Executive Director of the Center for Talent Reporting, (, recently published an article in Chief Learning Officer (CLO) Magazine that described when the Securities and Exchange Commission (SEC) will require human capital reporting. 

On August 26, 2020 the SEC revised that rule and now requires that organizations report information that is “material”—meaning anything that an investor would find valuable when considering buying a security.  That is BIG news. That ruling includes human capital metrics. Do you NEED to measure the VALUE of your Humana Capital?

Thankfully, there is a readily available framework for measuring and reporting human capital. The International Standards Organization (ISO) which has improved product quality and consistency around the globe with ISO 9000, has developed a standard for sharing meaningful measures of human capital called ISO 30414.

How Should You Prepare?

There are many ways to approach this IS) 30414 Human Capital Reporting Standard. Here are three steps that will certainly help:

  1. Assess your current state.  Look across your systems, analytics resources, and reporting processes.  Can the current state in your organization provide the information needed?  The likely answer is no, but that is okay, because it is a starting point.  The output of this step should be a document that defines what you have, and what you don’t have. We can help.
  2. Plan for your future state.  You need to close your data and reporting gaps identified in step 1.  Leverage your systems, teams, and processes.  Prioritize the metrics that your stakeholders say are most important.  Also spend time determining how much effort will be required to obtain each metric and report it.  Use the business needs and efforts required as guides for prioritization.
  3. Deliver.  Practice generating a full report regularly. Start today. Each attempt should identify persistent gaps and areas that need process improvements.  Set a date for when you need to deliver the full report without any missing data. Drive towards completion.  Launch the report and share results with stakeholders long before the final report is needed for reporting or compliance reasons.  Continue to iterate and improve.


  • ISO 30414 provides a useful framework for gathering, analyzing, and reporting results
  • Prepare by examining the current state of your HR analytics practices; close gaps on the metrics that need to be reported
  • Leverage your internal resources, systems, and processes
  • Engage external resources like Action Learning Associates, with expertise in HR analytics and ISO 30414.
  • Contact us today. You can’t afford to wait.