A New Human Capital Audit Process That Retools Your Human Resources Strategy for the 21st Century
Much has changed in the 5 or 10 years since many organizations have seriously audited the effectiveness of their Human Capital practices. Three veterans in Human Resources Management and Standards and Enterprise Engagement have created a state-of-the art audit of human capital practices to address the critical importance of return-on-investment, stakeholder experience and greater organizational effectiveness.
A newly created audit service enables organizations to assess the effectiveness of their key human capital practices, including not just employees but other stakeholders as well, including customers, distribution partners and vendors. International Center for Enterprise Engagement (ICEE) is the first to bring 21st Century human capital standards to the Human Capital Audit marketplace that encompasses not only the latest effective practices in multiple areas of human resources, but also the equally critical areas of customer, distribution partner, vendor and community resource management.
Over the last several years, ISO has published 12 standards that create a unique opportunity for organizations to benchmark and potentially update their Human Capital Management (HCM) practices to better align with organizational objectives and create a better experience for all stakeholders.
As the first organization devoted to certification in human capital standards with its ISO 10018 Quality People Management certification, the ICEE at the Healthcare Management Institute of the University of Texas Medical Branch is offering the first Human Capital Audit service to help organizations benchmark their current practices against most effective practices based on the 12 ISO standards and latest research.
Why It May Be Time for Your Organization to Conduct an HR Audit
This new Human Capital Audit addresses growing demands from investors, boards, customers, and employees for organizations to focus on people. This new audit advisory service addresses questions being asked by leading investors, pension fund managers, customers, distribution partners, and employees. What many organizations lack is a roadmap of how to make the connection between human capital investments and positive measurable outcomes. See ESM: Effective Practices for Everyone: 9 Human Capital Standards Now Available from ISO.
The 21st Century Human Capital audit addresses a growing urgency because people increasingly want to invest in and do business with organizations that have a strategic focus on people. ISO practices not only are proven to improve processes and outcomes, they mitigate the risk of the loss of valuable talent, customers, distribution partners, or vendors; accidents, product liability and other litigation issues, not to mention corporate reputation.
While many industries and professions have been disrupted by major changes over the last decade or more, the human resources field has talked a lot about disruption, but little appears to have changed. Whether or not an organization seeks ISO certification, it can benefit from worldwide-respected effective practices developed through a consensus-based process involving nearly three dozen countries and hundreds of experts representing all areas of business and academia. These new standards provide the first opportunity for organizations of any size to benchmark their organizations against the latest effective practices defined by the world’s most respected standards organization.
What Is New About These ISO Standards?
The major contribution of ISO standards is to apply a systematic approach to elements that often are disconnected or even siloed in organizations. ISO standards have helped improve quality and safety precisely because they looked at the processes necessary to connect to provide better outcomes. Until about eight years ago, ISO had overlooked the need to have a similar systematic approach to people with clear return-on-investment measures: whether quantitative in terms of financial results, productivity, quality, retention, absence of litigation or other claims, or qualitative, in terms of better experiences for all stakeholders. This new service can help organizations of almost any size audit their human capital practices to ensure that they align with effective practices and can help recommend solutions based on the gap analysis and potential return-on-investment on potential measures.
Organizations have not had a completely updated objective, open-source benchmark for years against which to assess not only their human resources operations, but their entire human capital strategy– encompassing not only employees but customers, vendors, distribution partners, and other communities. With its practical management experience with organizations large and small, and with its knowledge of ISO Annex SL and ISO 10018 and the 10 new ISO HR standards, of which few organizations are yet aware, there simply is no organization better qualified than ICEE to provide this Human Capital Audit service.