In August of 2020, the SEC published new rules for human capital reporting of public companies. The rule requires human capital metrics for companies subject to SEC reporting requirements. It will continue to require reporting of employee counts, but encourages additional information, such as temporary, part-time and contractor counts too.
In summary, the new rule requires disclosures about human capital resources, including any human capital measures. The rule references attraction, development and retention of personnel as three areas where human capital disclosures are to be reported. As a result, the SEC suggests the below metrics as examples. The below metrics are primarily activity or efficiency data that most organizations traditionally track anyway.
Attraction: Time to fill vacant position, time to fill critical vacant positions, percentage of positions filled internally, percentage of critical positions filled internally
Development: Development and training cost, percentage of employees who have completed training on compliance and ethics
Retention: Turnover rate
Based on the above, talent organizations now have another compelling reason to measure the effectiveness of onboarding programs, strategic programs like leadership development and the impact of learning that increases employee engagement. Measuring the impact and outcomes of these strategic learning programs will augment the data above and really showcase the outcomes of realizing better recruiting, retention and engagement.Performitiv worked with leading organizations to create the Net Impact System, including the Impact Process Map. The model and map are the perfect roadmap for measuring attraction, development and retention impact. Contact us if you want to apply practical learning strategies - in real-time - to effectively measure strategic, visible and costly programs. Reach out to us not only to learn how to better report learning impact on these items, but to use the data to create high performing workforces and to better support your SEC reporting too.
The Performitiv Team