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Setting Standards

Human Resource Executive (05/31/12) Tom Starner

The Society for Human Resource Management’s efforts to develop an “investor metric” standard to “help the investment industry determine the value of human capital and report on it easily” is receiving criticism from some in the HR community. The proposed standard calls for companies to disclose almost every corporate cost associated with the hiring, retention, and training of employees and contingent workers, plus detailed information regarding how the company is organized and staffed.

Both the American Staffing Association and the HR Policy Association have asked SHRM to drop efforts to create an investor-metric standard. Their opinions were sent by letters during a 45-day comment period—that ended May 24—following the release by SHRM of a first draft of the proposed standard on April 10. Lee Webster, director of HR standards at SHRM, says his organization will continue to work with the other members of a task force of 166 HR practitioners, line managers, academics, and consultants, and review all comments. He also sent a letter to ASA and HR Policy, thanking them for their comments.