DI's ISO30414-compliant consulting services
Dream Incubator (DI) is the first consulting firm in Japan to introduce ISO30414-compliant consulting service. The talk between Technical Committee (TC260) member Mr. Zahid Mubarik and DI’s business producer Mr. Shunsuke Hosaka provides an overview of ISO30414, the benefits and difficulties faced by Japanese companies when adopting the standard.
ISO30414 is a management system standard that provides guidelines for human capital reporting with 58 key metrics divided into 11 categories. According to Mr. Hosaka, investors are becoming increasingly interested in intangible assets and human capital metrics. The benefits of ISO30414 include: 1/ Managers have a tool to measure and analyze human capital contribution to the organization; 2/ Strengthen the company’s reputation, improve ROI, employee morale, wellbeing and safety, reduce employee turnover, as a result gaining clients and investors’ trust.
As the standard is based on Western labor practices, DI will support our clients in adopting this standard in a manner that fits each unique situation and needs in Japan.
Investors now care more about human capital metrics to grasp their investees’ ability to sustain the human resources needed for business strategies and diversity for innovation under the influence of declining birthrate and aging population, digitization, changing working conditions due to COVID-19. In the latter part of the talk on ISO30414, Mr. Zahid Mubarik and Mr. Shunsuke Hosaka cover 3 major challenges involved in adopting the standard faced by Japanese companies: 1/ Some aspects of the standard do not match Japanese labor practices; 2/ Some metrics require a system in place for internal surveys and succession planning which many Japanese firms fail to have; 3/ Japan has relatively low diversity and engagement rates compared to its peer nations. These common challenges should be addressed using ISO30414 as a tool for improvement.
The goal should not solely focus on ISO30414 certification, but should include a sound understanding of the standard itself. Japanese companies are advised to showcase their outstanding HR aspects to investors, even initiatives not covered by the standard.
