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In this blog let’s see what are the key modules that capture the information related to the Labor Practices and decent work KPI.

 

Aspect: Employment

 

LA1 Total workforce by employment type, employment contract, and region.

 

To make things clear, employment type means whether it is fulltime or part time, Employment contract refers to temporary or permanent employment, and region can preferably be the country in which the organization is operating.

 

This data can be collected from the SAP HCM sub module Personnel Administration. For the last one, workforce by region, we can leverage the SAP delivered standard report “HR Master Data Sheet (Report RPPSTM00)”. It comes with the facility to restrict the selection to country grouping, which has an organizational assignment to a country.

 

It is a usual practice to distinguish whether the employee is a permanent or temporary; full time or part time by allocating a separate Employee Id for the them, from which we can report on the first 2 parameters.

 

LA2 Total number and rate of employee turnover by age group, gender, and region.

 

The term “Turnover” is defined as follows “Number of employees who leave the organization voluntarily or due to dismissal, retirement, or death in service”. In short, this is the KPI on the attrition level.

 

For a particular reporting period, we need to figure this out. There is a SAP delivered report “Staff Changes (Query STAFF_CHANGES and Query STAFF_CHANGES2)”, which comes with its own selection criterion for reporting period and the following selection criterion:

  • Employment status
  • Personnel area
  • Personnel sub area
  • Employee group
  • Employee subgroup

Restricting with a reporting period and Employment status, we must be in a position to figure out the required KPI.

 

Once we have the main list, then it is just a matter of time to filter it or sort it out with respect to gender or age wise. We can use “Statistics: Gender Sorted According to Age (Query GENDER_PER_AGE)” to achieve this one.

 

Another way, perhaps simpler way, is to create a “ZREPORT” based on the following tables Actions infotype (0000), and/or the Additional Actions infotype (0302) to straight away achieve the purpose.

 

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

 

This is basically a qualitative disclosure, just listing out the benefits given to the full time employee. This can include:

  • Provident fund,
  • Gratuity,
  • Life insurance,
  • Health care,
  • Disability/invalidity coverage,
  • Maternity/paternity leave,
  • Retirement provision,
  • Educational loan/ leave,
  • Club membership,
  • Stock ownership, etc.

 

Aspect: Labor/ Management Relations

 

LA4 Percentage of employees covered by collective bargaining agreements.

 

Usually the agreements signed with the trade unions are applicable to the particular set of categories of the employees like Permanent employees, temporary employees, part-time employee etc. If there is any set of employees, who are exempted from such agreements say temporary or part-time employees, then that needs to be reported. Perhaps we can leverage the naming convention used for different set of employees to get the right figures.

 

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

 

The examples of significant operational changes, as given in the GRI guidelines, include, restructuring, outsourcing of operations, closures, expansions, new openings, takeovers, sale of all or part of the organization, and mergers.

 

This is again a qualitative disclosure on how many weeks or months are given, before such significant changes are going to be implemented. Whether an agreement signed with the employee union, exists on this needs to be disclosed.

 

Lets see the remaining KPIs in part 2.

 

Disclaimer: The opinions expressed in this blog are purely my personal opinions and has no legal liability on my employer or affiliates or parent organization.

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