Human Resource Management Life Cycle: Clause 8.0: ISO 30415: 2021: Diversity, Equity and Inclusion

Train people well enough so they can leave. Treat them well enough so they don’t want to.” – Sir Richard Branson 

Introduction

The human life cycle refers to the various stages of development that humans go through from birth to death. While there can be slight variations depending on cultural, social, and individual factors, the typical human life cycle includes the following stages: Infancy, early childhood, adolescence, adulthood and end of life.

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Content: Human Resource Management Life Cycle: ISO 30415: 2021: Clause 8.0

  1. What is the Human Resource Management Life Cycle?
  2. What are the different requirements?
  3. Why it is important?
  4. How can an organization effectively implement it?
  5. Conclusion

Objective

As per ISO 30415: 2021 standard, developing an inclusive workplace requires an ongoing commitment to Diversity, Equity and Inclusion (DE&I) to address inequalities in organizational systems, policies, processes and practices, as well as people’s conscious and unconscious biases and behaviours.

Human resource management is core to developing and maintaining an inclusive work culture in any organization. Starting from developing the policy for recruitment to the cessation of the employee, HR plays a crucial role.

Once you go through the article, you will understand the requirements of human resource management, the nine different stages of the life cycle,  the four key aspects of each stage (General, Actions, Measures and Outcomes) and how an organization can effectively implement it.

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Definition: ISO 30415: 2021

Bias (3.5): Tendency, inclination or opinion that is preconceived or unreasoned that hinders impartial judgment.

Diversity (3.7): Characteristics of differences and similarities between people. Diversity includes factors that influence the identities and perspectives that people bring when interacting at work.

Employee Resource Group- ERG (3.8): People with shared demographic and other diversity dimensions, and their allies. An ERG generally consists of people who join together in a network to share experiences and beliefs, and to promote diversity and inclusion in the workplace.

Equality (3.9): State of being equal, especially in status, rights, opportunities or outcomes.

Equity (3.10): Principle that policies, processes and practices should be fairly applied and individual needs recognized.

Fairness (3.11): The principle that everyone should be subject to procedures that are equitable and as far as possible free from systematic bias.

Inclusion (3.12): Practice of including all stakeholders in organizational contexts.

Onboarding (3.16): Process of welcoming people into the organization, its culture, expectations, policies, people and their roles.

Voice (3.19): The way people communicate their views and influence matters that affect them.

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Detailed Information

As per the recent study by Harvard Business Review, companies with an above-average total diversity (meaning migration, industry, career path, gender, education and age diversity), had 19% higher innovation revenues and 9% higher EBIT margins. Yet only 40% of employees agree that their manager fosters an inclusive environment!

The studies show a strong correlative relationship between business performance and DEI (Diversity, Equity and Inclusion). Organizations that have greater access to talent and increased employee engagement contribute to this performance effect. When the organization’s top management starts looking at DEI as a business case, the implementation will increase in a real sense.

The standard is relevant to the following United Nations Sustainable Development Goals (SDGs):

  • (5) Gender Equality
  • (8) Decent Work and Economic Growth
  • (9) Industry, Innovation and Infrastructure
  • (10) Reduced Inequality.

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As per clause 8.0 of ISO 30415: 2021, the following are the 9 different stages of the HR cycle.

  • Workforce planning
  • Remuneration
  • Recruitment
  • Onboarding
  • Learning and Development
  • Performance management.
  • Succession planning
  • Workforce mobility
  • Cessation of employment

The detail for each stage is bifurcated into 4 parts to clearly define it (General, Actions, Measures and Outcome).

Work Force Planning (Clause 8.2):

General 1.       Current and future workforce supply and demand.

2.      Identification of workforce knowledge, skill and ability.

Actions 1.       Develop workforce planning considering DEI initiatives.

2.      Possible opportunities and risks related to DEI.

3.      Clear identification of workforce knowledge, skill and ability.

4.      Collect data about existing workforce composition considering demographic profile, sector, regions etc.

5.      Compare it with existing workforce availability to identify demographic underrepresentation and DEI Risks and opportunities.

Measures 1.       Data about existing workforce availability vs existing manpower

2.      Trends about the existing gap.

Outcomes 1.       Articulation of DEI objectives in workforce planning.

2.      Identification of possible risks and opportunities related to workforce planning.

3.      How to become a more inclusive organization.

Remuneration (Clause 8.3):  

General 1.       Pay and benefits employees receive based on their role.

2.      Pay and benefits could be fixed, partially variable, performance-linked etc.

3.      Benefits can be non-monetary like paid leave, retirement benefits, health care, flexible time etc.

Actions 1.       Incorporate DEI principles and objectives in policies.

2.      Evaluate and benchmark the role value.

3.      Pay and benefits decisions to be fair, equitable & transparent and communicated clearly.

4.      Identify anomalies in remuneration related to gender, geographic location etc.

5.      Collect data related to satisfaction with remuneration and reports.

Measures 1.       Number of complaints and disputes related to pay and benefits.

2.      Level of satisfaction or dissatisfaction about fairness in remuneration and related policies.

3.      Measure the gap and anomalies related to gender, geographic location etc.

Outcomes 1.       Policies and practices are fair, equitable and transparent.

2.      Equal pay for work of equal value.

3.      Pay anomalies and disparities are addressed.

Recruitment (Clause 8.4):      

General 1.       Process of attracting, sourcing, assessing, selecting and employing people with knowledge, skill and ability.

2.      To broaden the candidate pool, use diverse and accessible recruitment channels.

3.      While screening, assessing and selecting, should be aware of the possible bias, disparity in gender, socio-economic disparity and demographically under-represented groups.

Actions 1.       Identify potential risks and opportunities related to bias and discrimination.

2.      Develop and use transparent, fair and non-discriminatory practices to manage potential conscious and unconscious bias including automated HR system algorithms.

3.      Use inclusive language in job promotion and advertising.

4.      Communicate DEI principles and objectives to the recruitment agencies.

5.      Clear job description to demonstrate required knowledge, skill and abilities from various cultural backgrounds.  

Measures 1.       The number of complaints, incidents and allegations related to bias and discrimination.

2.      Number of offers accepted and not accepted with reasons.

3.      Workforce turnover and retention data.

Outcomes 1.       Society recognizes the organization as a fair and inclusive workplace where everyone is valued.

2.      Identification and address of risks related to bias and discrimination during recruitment.

Onboarding (Clause 8.5):       

General 1.       Process of welcoming the people recruited into the organization and its culture.

2.      Introduction about the organization’s initiatives related to DEI.

Actions 1.       A structured process incorporating both standard and job-specific requirements to provide opportunities for open communication and feedback.

2.      Identify individual requirements regarding work environment, facilities and technology including any specific individual need like health condition impairment etc.

3.      Identify individual requirements for learning and development like mentoring, and coaching (under-representation demographic).

4.      Communicate and promote the expectations related to diversity, equity and inclusion.

5.      Provide information about resources like helpline number, ERG (Employee Resource Group), and how to resolve DEI-related issues or people complaints.

Measures 1.       Number of completing the onboarding process and their satisfaction level.

2.      Number of occasions and types of DEI support people used like ERG, helplines etc.

3.      The number of development opportunities like coaching and mentoring.

4.      The number of complaints related to bias and discrimination.

5.      Number of people staying or leaving within 6 months of completing onboarding.

Outcomes 1.       Employees feel welcomed, included and valued.

2.      Employees are aware of and understand the importance of DEI.

3.      People know how to access policies and resources and where to go for help and support for issues related to harassment, discrimination, retaliation and whistleblowing.

Learning and Development (Clause 8.6):

General 1.       Focus on improving individual, team and organizational performance through enhancing knowledge, skill and ability.

2.      Learning needs to be identified during recruitment, onboarding and performance management reviews.

3.      Formal and informal approaches for learning and development like online, individual, on the job, coaching, mentoring etc.

Actions 1.       Learning and development should be accessible to everyone including those who need special attention.

2.      Identify individual and organizational needs and provide adequate resources.

3.      Integrate DEI principles in the learning and development process.

4.      Use inclusive, knowledgeable and experienced trainers, coaches and mentors who reflect a wide range of perspectives, abilities, values and beliefs.

Measures 1.       The number of people who participated in learning and development activities.

2.      Evaluation of feedback and satisfaction level.

3.      Evaluate the impact of learning and development on the organization’s outcome.

Outcomes 1.       People understand the importance of DEI principles and objectives.

2.      Equal access and opportunities to all groups of people.

3.      People develop skills and confidence to recognise, challenge and address bias and discrimination.

Performance Management (Clause 8.7)

General 1.       Establishing individual performance & behavioural expectations and identifying learning needs & expectations.

2.      Performance management should encompass recognizing and rewarding inclusive behaviour and addressing biased and discriminatory behaviour.

Actions 1.       Communication of DEI principles and expectations in performance management policies so that people can contribute to developing an inclusive culture.

2.      Define performance management objectives linked with DEI principles and objectives.

3.      Provide constructive feedback and identify areas for improvement.

4.      Monitor performance management outcomes to identify potential rater bias and disparity.

5.      Review the performance management process to ensure that DEI principles are embedded and are fair, impartial constructive and inclusive.

Measures 1.       The number of people who participated in the performance management process.

2.      Any adverse and disproportionate impacts.

3.      Level of satisfaction and dissatisfaction with the performance management system.

Outcomes 1.       Objectives linked to DEI are met and fostering a culture of accountability and responsibility among everyone.

2.      Bias and discrimination in the performance management system are challenged and addressed.

Succession Planning (Clause 8.8)

General 1.       Considering, selecting, developing and placing individuals in positions that have a significant impact on organizational performance.

2.      Identify a diverse pool of potential successors ready now or in the future, to assume leadership roles and critical positions.

Actions 1.       Incorporate DEI principles in succession planning policies.

2.      Communicate in an accessible, inclusive and transparent manner.

3.      Identify the possible risk related to bias when identifying people for succession planning.

4.      Ensure that people from demographically underrepresented groups are aware, have access, and are supported through mentoring.

Measures 1.       Percentage of workforce identified for succession planning and placed.

2.      The number and types of complaints.

3.      Reported level of satisfaction and dissatisfaction.

Outcomes 1.       Succession planning is fair, transparent and inclusive.

2.      Systematic and periodic review to check whether diverse pool of potential successors.

3.      Effectiveness of personal development plan identified as potential successors.

Workforce Mobility (Clause 8.9):   

General 1.       Policies, processes and practices involved with transferring individuals from one location to another.

2.      It can include temporary assignment, expatriation, in-patriation and repatriation.  

3.      Ensure inclusive, proactive and systematic risk management approach related to flexibility, health, safety, well-being, immigration and other factors.

Actions 1.       Identify possible risks and opportunities related to temporary assignment, expatriation, in-patriation and repatriation.

2.      Recognise and respond to individual and family circumstances that can influence the decision to accept or decline the work assignment or relocation.

3.      Ensure that individuals who decline the offer are reconsidered for the future assignment without any bias.

4.      Collect data about satisfaction and dissatisfaction.

5.      Review workforce mobility decisions to identify and address any potential bias and demographic under-representation.

Measures 1.       Percentage of workforce who accepted or declined the mobility opportunity with reason.

2.      Number and type of complaints related to the workforce mobility process.

3.      Reported level of satisfaction and dissatisfaction about fairness.

Outcomes 1.       Policies are fair, transparent and inclusive.

2.      Everyone is made aware of the mobility policies and opportunities.

3.      The broadest range of people is represented in the work assignment outcome.

Cessation of Employment (Clause 8.10)

General 1.       End of individual’s employment with an organization either voluntarily or involuntarily, through resignation, retirement, redundancy, performance-related, ill health or death.

2.      Policies, processes and practices for cessation should be transparent, and implemented impartially, sensitively and respectfully, with due regard to confidentiality, wellbeing and health.

Actions 1.       Consider the possibility of redeployment to alternative work or a flexible work environment before terminating employment due to ill health or capability.

2.      Ensure the criteria for redundancy and severance are non-discriminatory.

3.      Provide the opportunity for consultation, concern and appeal mechanism and support from ERG.

4.      Collect data by diversity dimension on workforce turnover and attrition resulting from resignation, retirement, redundancy and dismissal.

5.      Collect solicited and unsolicited feedback through different mechanisms like exit interviews, social media etc. to ascertain the organization’s image as an inclusive employer.

6. Provide a channel so that people can remain connected after their employment has ended.

7.      Investigating and resolving complaints of bias and discrimination in the decision-making process.  

Measures 1.       The trend in turnover and retention.

2.      Trends in solicited and unsolicited feedback on cessation of employment.

3.      Monitor the exit interview data.

Outcomes 1.       Policies, processes and practices that are transparent, implemented impartially, minimize biases and prevent discrimination.

2.      Consultation mechanism with individuals like ERG.

3.      The organization has a reputation as an inclusive employer.

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Conclusion:

In the 21st century, leaders have no choice but to adopt diversity and inclusion to its core. With a surge in understanding and implementing the principles of DEI in true essence, the results will be more dynamic and fruitful. The latest research has shown many benefits of a diverse and inclusive workplace:

  • Higher revenue growth
  • Greater readiness to innovate.
  • Improved global image and license to operate.
  • Higher employee retention

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References:

ISO 30415: 2021

ISO 30408: 2016: HRM: Guidelines on Human Governance

ISO 30400: 2022: HRM: Vocabulary

Industry Experts

This is the 204th article of this Quality Management series. Every weekend, you will find useful information that will make your Management System journey Productive. Please share it with your colleagues too.

In the words of Albert Einstein, “The important thing is never to stop questioning.” I invite you to ask anything about the above subject. Questions and answers are the lifeblood of learning, and we are all learning. I will answer all questions to the best of my ability and promise to keep personal information confidential.

Your genuine feedback and response are extremely valuable. Please suggest topics for the coming weeks.

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