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Technology Helps Communicate HR's Value
Two-thirds of the 250 largest companies in the world now issue sustainability reports, along with their financial reports, to capture the full value of the organization and its potential for future growth. Sustainability reporting has been formalized under guidelines by the Global Reporting Initiative, an international network comprising business, labor, investors and accountants. The guidelines document non-financial key indicators including social, environmental, governance and HR-related factors that may affect business results. As companies and their stakeholders increasingly recognize the links between sustainability reporting, risk management and business planning, HR metrics will find a far more central role in corporate reporting.
Hewlett-Packard's annual sustainability report, which follows GRI guidelines, includes information and data on its labor practices, training programs and spending, performance review process, pay policies, employee benefits, options grants, employee stock purchases, career development, leadership program participation, workforce reductions, ergonomics assessments and employee communications. It also discloses the number of employees terminated, warned or demoted for ethics violations.
Executives and shareholders increasingly recognize that financial data alone cannot provide full transparency. Markets in the U.S. and abroad readily reward companies that offer a full accounting of non-financial measures that may affect the viability of the organization. A growing number of institutional investors, insurance companies and financial institutions are demanding that all companies meet global standards for the disclosure of non-financial data, including HR data. Workforce management executives looking for a place to document HR's contribution to the organization have now found one.
Workforce Management, January 29, 2007
According to a Chartered Institute of Personnel and Development (CIPD) survey, the use of technology within human resources has grown considerably in recent years, 77% of organisations used some form of Human Resource Information System (HRIS) in 2005. The top 7 reasons for introducing HR technology based on the respondent percentages:
1. Improving quality of information available (91%)
2. Reducing administrative burden on the HR department (83%)
3. Improving speed at which information is available (81%)
4. Improving flexibility of information to support business planning (59%)
5. Improving services to employees (56%)
6. Producing HR metrics/measures for performance improvement (55%)
7. Aiding human capital reporting (42%)
Human Resources, January 1, 2007
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