Allianz, one of the world’s largest insurance companies, with over 150,000 full time employees, has published its annual human capital report in conformance with ISO 30414 human capital standards and verified by an independent auditor. The information contained in the 2021 report was reviewed by Dr. Heiko Mauterer, Board Member of the Germany-based 4C GROUP AG management consultancy, and a member of the ISO committee that created the standard. The 4C GROUP is the European affiliate of the International Center for Enterprise Engagement ISO human capital certification organization.
The number and diversity of companies publishing ISO 30414 conforming human capital reports continues to grow. One of the first companies to begin publishing human capital reports as far back as 2010, Allianz took the step this year to publish the information in conformance with the ISO 30414 human capital standard verified by an independent auditor certified for competence in the standard and human capital management. Demonstrating that human capital reports are in fact a business issue, and not a legal one, Dr. Heiko Mauterer is a business expert in human capital management and reporting, not an attorney nor even a human resources professional.
Click here for a copy of the report. To learn more about human capital reporting and the creation of this ISO 30414 report from Dr. Mauterer, listen to the recording of the session: “Why Human Capital Reporting Is Also a Marketing Issue,” held Wed. April 6 at 1 pm ET US. Click here to view and/or listen to the show.
The report is broken into sections, each of which addresses the overall goals and strategies, methods. and metrics that apply. It is organized into the following topics:
• An overview of the strategies and methods with both financial performance and a snapshot and description of stakeholders.
• Employee mental health and well being.
• AllianzU, its professional development and learning platform.
• Reward and performance and global mobility.
• People attraction and talent management.
• Employee engagement.
Click here to compare the Allianz report with the 2021 Human Capital Report of Deutsche Bank or the 2021 report of JetRuby.com. Click here to downloand the 2019 DWS report.
Contrary to the general traditional resistance of companies to disclose human capital information, this report is verified by an independent auditor to meet the reporting standards of the ISO 30414 human capital report, including such key information below compared with three years earlier (note--one Euro equals about $1.14):
• Operating profit per employee: €95.9 million, a gain from €87.2 million.
• Revenues per employee: €1.062 million, versus €1.047 million.
• Employees who participated in at least one training program---100 percent, up from 75 percent.
• Turnover rate: 15 percent, down from 16 percent.
• Sick days per employee: 6.9 down from 8.1 during a time of pandemic.
• Average age: 40.7 versus 40.6.
• Personnel expenses per employee: €87.3 against €86.9.
• Human Capital Return on Investment*; 100%, compared with 95%.
*Human Capital ROI formula: Revenue minus Non-Human Capital Expenses (operational human capital expenses, such as offices, cars, equipment) divided by human capital expenses (salaries, training costs, compensation and benefits). For this calculation, capital and depreciation are deducated from revenues.
Allianz reported strong finanical results for the same period, with revenues up 5.7 percent; operating profit up 24.6% and net loss attributable to shareholders down 2.9 percent.
Observes Dr. Heiko Mauterer, whose organization the 4C GROUP, an advisory and management consulting firm in Frankfurt, verified the information: “I believe that Allianz has made a historic step forward on the path to transparency in business. It is one thing to be among the world’s first to start disclosing human capital information in 2010. It is yet another to do so in a manner that makes the report more meaningful and comparable with others by aligning with international ISO 30414 human capital standards, and to have the information independently verified by an organization such as ours with extensive expertise in business management, human capital management, and reporting.”
Dr. Mauterer served on the ISO working group that created the ISO 30414 standard and is Senior Advisor to the International Center for Enterprise Engagement at TheICEE.org.
The 4C GROUP also verified the 2021 and 2022 of Deutsche Bank, the second company to both follow the ISO 30414 reporting guidelines but having the information verified by an independent auditor trained both in the standard and human capital management and reporting. The first company to have a 30414 conforming human capital report independently verified was Germany-based asset management firm DWS, whose 2019 and 2020 reports have been audited, with 2021 underway, according to Dr. Mauterer.
As organizations begin to see human capital reporting as a stakeholder engagement and financial strategy, the pace of such announcements may accelerate, but it has taken much longer than expected in 2019, when the topic of human capital management became of growing intereset among investor groups.
Wrote David McCann on CFO.com in September 2019 just before the pandemic, “A climate ripe for extensive disclosure of human capital data is blanketing the corporate world, with European companies taking the initial lead. Over the past two years, a litany of events has combined to create a groundswell of momentum for such disclosure. Propelling the idea is the ever-broadening consensus among stakeholders that effective assessments of a company’s performance and prospects require solid information on workforce costs, productivity, and how employees are hired, developed, and managed.”
He quotes a Deutsche Bank report: “Given that many [European] companies are talking about implementing the standard as soon as possible, it will soon be possible to incorporate human capital issues into fair value analysis.”
That was two years ago. The first ISO 30414 conforming human capital report was published in 2021 for the 2020 and 2021 fiscal year by Deutsche Bank, followed by technology application development firm JetRuby.com in March 2022.
McCann’s 2019 article confirms the long-standing commitment of Allianz to recognizing the importance of people as an asset as opposed to a sunk cost. About Allianz’ disclosures, he quotes Jeff Higgins, a former Chief Financial Officer and lead US representative on the ISO working group for the standard, “the report contains most of what the standard calls for…I would consider Allianz to be the first company that is essentially compliant with the standard.”
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