For the past year, I have been leading SHRM’s Investor Metrics Workgroup, which is a key component of SHRM’s larger standards setting initiative. I am pleased to report that we have made significant progress.
In December a draft Investor Metrics Standard was passed by the Workgroup. This month, the draft Standard will move on to the next step of the process, which is a vote by the larger SHRM Metrics & Measurement Taskforce. After that the Standard will go through a public comment period, and if necessary, revisions. Then, finally it will be an official ANSI standard (and it may then go on to be considered by ISO as an international standard).
(Turns out the standards-setting process has many steps!)
As the next steps of this process unfold, we will be looking for firms that are interested in beta-testing the standard. So if you think this might be of interest to your organization, please contact me directly, and I can provide you with more detail on the draft standard and the process for beta-testing it.
I have been appointed as the workgroup lead on a SHRM/ANSI taskforce that is charged with developing American National Standards for improving reporting about human capital on Form 10-K (the annual report that all publicly traded firms in the U.S. must file with the U.S. Securities and Exchange Commission).
This workgroup is a part of a larger effort that SHRM has launched to create standards for the HR profession. When the standard has been established, we intend to submit this document to the Financial Accounting Standards Board (FASB) for consideration.
This is, for me, a very exciting development since I have long advocated for improved reporting on human capital. It would have important implications for the HR profession and, perhaps more fundamentally, has the potential to change how people are managed and developed.
The group’s work will be guided by the following questions:
- What does the existing knowledge/research base tell us?
- What can we learn from other groups working on this?
- How do we make the standards stick by understanding the perspective of the parties that will be impacted?
- What specific human capital information should be included in Form 10-K?
If you have perspectives or advice that you would like to share on any of these questions, I’d be delighted to hear from you. Please feel free to post a response or to contact me directly.