Episode 31
The Biggest Thing to Affect the Talent Industry in 2020 | with Gerry Crispin
The SEC’s August 2020 mandate requiring public companies to disclose human capital metrics is reshaping how talent leaders build business cases and prove ROI. Gerry Crispin explains why this quiet regulatory shift is the biggest story in recruiting this year.
Episode Key Takeaways
In August 2020, the Securities and Exchange Commission announced that all public companies must now disclose human capital management measures in quarterly and annual filings—a first-time requirement with legal force. This stems from a 2019 petition by 26 institutional investors managing $3 trillion in assets, demanding transparency on metrics like engagement, retention, and hiring that directly impact stock performance.
The ISO 30414 standard, published in 2018 and developed by 40 countries over three years, defines 58 human capital measures that the SEC implicitly endorsed by citing them in guidance. Eleven to fifteen of these measures relate directly to recruitment, mobility, and turnover—giving TA leaders a globally vetted framework for what to measure and report.
Gerry emphasizes this is a watershed moment for talent leaders: CEOs will now ask HR for clean, consistently measured data tied to business outcomes because investors will use it to decide where to allocate capital. This shifts the conversation from ‘make employees happier’ to ‘here’s how this investment impacts our stock price and regulatory compliance.’
Goldman Sachs has already moved to require compliance with future SEC standards before bringing companies to IPO, signalling that this requirement will cascade beyond NASDAQ-listed firms into private equity, venture capital, and multinational organizations globally.
The real opportunity lies in proactive leadership: TA leaders who align their metrics to ISO 30414 now—before mandates arrive in their jurisdiction—will have credibility and influence when executives scramble to build compliance frameworks. Waiting for legislation means playing catch-up; leading means shaping the standard.
Frequently
Asked
Questions
What did the SEC require companies to disclose in August 2020?
The SEC mandated that all public companies disclose human capital management measures as a separate item in quarterly and annual filings. Companies must report any human capital metrics they believe are material to how they manage their business, along with how they measure them. This applies to every public company in the United States.
What is ISO 30414 and why does it matter for TA leaders?
ISO 30414 is an international standard published in 2018 that defines 58 human capital measures agreed upon by 40 countries. It covers cost of hire, internal mobility, retention, engagement, and ROI of human capital investments. The SEC cited these measures in guidance, making it a de facto global framework for what to measure and report.
How does this SEC rule change the business case for TA budgets?
TA leaders can now frame budget requests in language CEOs understand: ‘The SEC requires us to report this metric. It’s currently at X. I need budget to move it to Y, or we’ll report declining performance to investors.’ This ties talent investments directly to stock price and regulatory compliance, elevating TA from cost centre to strategic asset.
Does this SEC rule apply to private companies or non-US organizations?
The SEC rule applies only to public companies. However, private companies will feel pressure because their investors and acquirers will expect compliance. Multinationals will need to adapt measures across geographies. Since ISO 30414 is international, non-US organizations should begin aligning now to prepare for similar regulations in their markets.
What should TA leaders do right now to prepare?
Download ISO 30414 (costs $138) and audit which of the 58 measures your organization currently tracks. Identify 3–5 that are material to your business and investor concerns. Build a roadmap to measure them consistently over quarters. This positions you as a strategic partner when executives ask what to report to the SEC or investors.