ISO TS 30425:2021 download.Human resource management Workforce availability metrics cluster.
Iso 30414 highlights guidelines on the following core human capital reporting areas or clusters:
— compliance and ethics;
— costs;
— diversity;
— leadership;
— organizational culture;
— organizational health, safety and well-being;
— productivity;
— recruitment, mobility and turnover;
— skills and capabilities;
— succession planning;
— workforce availability.
ISO TS 30425 deals specifically with the cluster ot metrics in tne worKiorce avaiianiiity area. Managing workforce availability is a major challenge for all kind of organizations. ISO 30414:2018, 4.7.12, describes the significance of the workforce availability metrics.
Workforce availability metrics should be calculated at a granular level within organisations and aggregated across organisations, locations or both to deliver an overall understanding of each metric at every level as well as the aggregate workforce availability position, e.g. team, stream, department, location and organization level.
The metrics within the workforce availability metrics cluster as documented in ISO 30414 are:
a) number of employees;
— headcount;
— number of full-time and part-time employees;
Once established, the reporting should include a comparison of previous periods with the current period and of past years with the current year. Three-to-five years is a typical comparison period. This measurement period will allow trends to be established and further allow an organization to better manage expectations and outcomes by establishing targets for future comparison. A further comparison of actual headcount to budgeted headcount adds to the depth of understanding of headcount for managers, executives, the board and other relevant stakeholders.
The example in Tbk.1 compares the actual headcount with the budgeted headcount by quarter over a one-year period. This analysis can be expanded to include a full-time and part-time breakdown, a comparison with previous years or both.
4.4 How to use
Headcount can he used to monitor the size and mix of the workforce. Headcount can be both a historical and leading indicator of growth along with potential issues with expansion or contraction of the workforce. The more granular the dissection of the workforce size the greater the potential for analysis (e.g. breaking down the workiorce by department or team, comparing teams or departments based on budgeted headcount and comparing TMlike for likes headcount with comparable teams). An increasing gap between budgeted and actual headcount can indicate the area has issues with attraction or retention of workiorce.
5 Full-time equivalent (FTE)
5.1 General
Full-time equivalent (FTE) describes the number of full-time employees needed to complete the total hours worked in a defined period.
5.2 Purpose
The conversion of part-time employees to FTE highlights the equivalent number of full-time employees delivering the outputs and outcomes for an organization. Headcount by itself can he misleading as the number of part-time employees can skew the total number of employees required to deliver organizational outcomes.
The combination of full-time employees and calcuLation of part-time employees to FTE offers greater Insight Into the construction of the organization. The percentage of FTE who are part-time employees oilers further insight into the make-up of the employees over time.
5.3 Formula
The calculation of the Fit should align with the Financial year. the annual budgeting cycle or both. The point In time for calculation Is at the end of each defined measurement period, for example the end of month one, the end of quarter two or end-of-year totals. If for any reason the organization decides on another measurement point, utilization of the preferred measurement point should be consistent and articulated.
Once established, the reporting should include a comparison of previous periods with the current period and of past years with the current year Three-to-live years is a typical comparison period. This measurement period will allow trends to be established and further allow an organization to better manage expectations and outcomes by establishing targets for future comparison. A further comparison of actual Fit with budgeted FTE adds to the depth of understanding of headcount for managers, executives, the board and other relevant stakeholders.
The formula for the calculation of Fit is:
DA+(B/C)
where
A is full-time employees;
B is part-time total hours;
C is average weekly working hours;
D is full-time equivalent total.
Using the Central functions and Administrative Row In Table 2 below, an example of the application of the formula is as follows:
140 100 + (1 600/40)
5.4 How to use
Table 2 calculates the Fit hours for part-time employees and adds the full-time employees for the nominated period. The calcubtion assumes the time per week worked by full-time employees equals 40 h.
6 Contingent workiorce
6.1 General
Globally. the use or contingent and temporary workforces is increasing due to improving technology, a remote workforce. the gig economy and the need for organisations to improve flexibility and agility.
6.2 Purpose
The purpose of measuring contingent workforce is to gain an understanding of the effort and working hours produced by this labour source. This understanding of effort and working hours can then be compared and analysed as described in 6.4.
6.3 Fonnula
The calculation of the contingent workforce. the temporary workforce or both should align with the financial year, the annual budgeting cycle or both. The point in time for calculation is at the end of each defined measurement period, for example the end of month one, the end of quarter two or end-of- year totals. if for any reason the organization decides on another measurement point, utilization of the preferred measurement point should be consistent and articulated.
Once established, the reporting should Include a comparison of previous periods with the current period and of past years with the current year. Three-to-five years is a typical comparison period. This measurement period will allow trends to be established and further allow an organization to better manage expectations and outcomes by establishing targets for future comparison. A further comparison of actual headcount with budgeted headcount adds to the depth of understanding of contingent workforce for managers, executives the board and other relevant stakeholders.
Total contingent workforce is the sum of all workiorce as described In ISO 30414:2018.47.12.3.
Total temporary workiorce is the breakdown of all workforce as described in ISO 30414:2018,4.7.12.3 b) and ThbI4.
7 Absenteeism
7.1 General
Absenteeism Is important to measure as it impacts the overall ability of an organisatlon to deliver outputs and productivity levels on a day-to-day basis.
7.2 Purpose
This metric displays the percentage of available working days that employees are unavailable. Employees can be absent from work because of sickness, Injury, medical problems, personal Issues, strikes or job dissatisfaction. These absences can be avoidable or unavoidable. Vacation, statutory holidays and authorized leave are not part of the absenteeism rate calculation.
7.3 Formula
The calculation of absenteeism should align with the financial year. the annual budgeting cycle or both. The point in time for calculation Is at the end of each defined measurement period, for example the end of month one, the end of quarter two or end-of-year totals. If for any reason the organization decides on another measurement point, utilization of the preferred measurement point should be consistent and articulated.
Once established, the reporting should include a comparison of previous periods with the current period and of past years with the current year. Three-to-five years is a typical comparison period. This measurement period will allow trends to he established and further allow an organization to better manage expectations and outcomes by establishing targets for future comparison. A further comparison of actual absenteeism with budgeted absenteeism adds to the depth of understanding of absenteeism for managers, executives, the board and other relevant stakeholders.
The calculation olan absenteeism rate is:
A=B/C×100
where
7.6 Contextual factors
Many factors can have a significant impact on the measurement outcome. As Indicated In TabhL5. It is possible for instances where results can be less than expected or worsening; further investigation can find positive indicators of improvement. An example of this can be seen in Tabk1. The overall Increase In the use of part•tlme resources Is 11 % over the measurement period. This Is possibly down to management strategy. Further study of Table 3 notes the increase in logistics and production departments of 12% and 15 % over the measurement period.
Further analysis and Investigations are needed to put these numbers Into context.
When considering the context supporting the metric results, consider any underlying reason5 for Fit movement, such as:
— current activities the organization is undertaking;
— reorganizations;
— current activities in educating the workforce;
— cultural shifts, both positive and negative;
— generational perspectives;
— social change or awareness leading to increases in reporting; market demand;
— union negotiatIon or other industry or regional activities;
— industry expectation;
— economic factors;
— downturns;
— upturns.
7.7 Predictive factors
When forecasting potential improvements or deterioration in the current situation, organizations can look to future known and anticipated events and consider:
— planned organization structural or workforce changes;
— upcoming union negotiations;
— economic Factors;
— downturns;
— upturns;
— workforce awareness and education;
— political, social, environmental and legislative dynamics;
— industry sector impacts.