Integration Aspects in Sustainability Reporting for Labor Practices and Decent work KPI under GRI Framework Part L2
Please refer part L1 for continuity,
Aspect: Occupational Health and Safety
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.
List out the committees on “Health and safety” at different levels like facility level, company, region, or group levels. Then we can report the required percentage. This can be collected manually or through SuPM Module.
A better approach could be, the organization can have a fixed percentage of workers in such committees, so that uniformity is followed throughout the organization. Any exceptions, if it exists, can be reported.
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region.
This data must ideally come from Environment, Health and Safety (EHS) module. But as the volume of data will, ideally, be not much, it can be collected by Sustainability Performance Management (SuPM) module preferably.
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
This is again a qualitative data on the programs and policies, which needs to be developed as per the existing laws of the country and implemented.
LA9 Health and safety topics covered in formal agreements with trade unions. Health and safety topics covered in formal agreements with trade unions.
This is also a qualitative data, which can be collected manually. Perhaps, all such agreement may be classified, stored and retrieved from the Records and Case Management, if required.
Aspect: Training and Education
LA10 Average hours of training per year per employee by employee category.
This KPI can be captured by the HCM sub module Training and Events Management. There are quite a lot of standard reports from which we can get this KPI.
One of the important reports is “Attendance Statistics (Report RHKURS20)”. This report generates attendance statistics of all business events (training) for one or more event types in a given period. But the challenge is, reporting this statistics by the Employee Category. One solution is to filter the statistics based on the training, because usually one set of training is given to one set of employee category.
If this approach does not yield the desired result, then we need to identify the list of employees under each category and leverage the report “Attendee’s Training History (Report RHTHIST0)” iteratively and get the required KPI. The training history is a list of all the training and education events attended by an attendee or for which an attendee is booked.
As per GRI, the formula to be used is as follows:
LA10 = Total hours per employee category / Total employees per employee category.
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
This is again a qualitative KPI. The organization needs to list out, what all assistance and support it is giving to its employees, who are going to be retired or terminated.
As per GRI, some of the programs spelt out are as follows:
Do employee training or assistance programs to upgrade skills provide any of the following?
- Internal training courses;
- Funding support for external training or education; and
- The provision of sabbatical periods with guaranteed return to employment.
Do transition assistance programs to support employees, who are retiring or who have been terminated, provide any of the following?
- Pre-retirement planning for intended retirees;
- Retraining for those intending to continue working;
- Severance pay;
- If severance pay is provided, does it take into account employee age and years of service;
- Job placement services; and
- Assistance (e.g., training, counseling) on transitioning to a non-working life.
LA12 Percentage of employees receiving regular performance and career development reviews.
Ideally this percentage has to be 100%. But in case if some employees are left out, may be they are contract employee or part-time employee or for any other reason, the number of employees needs to be found out and the required percentage needs to be reported.
The standard report, which I can find, is “Attendee Appraisals (Report RHXEVALP)” This report generates a list of appraisals created for attendees of business events. We can also leverage this report to display attendees that have not yet been appraised.
Perhaps, using it to find out the total employees who have not been appraised, we can get the required KPI of who all have been appraised.
HCM sub module Personnel development has sophisticated appraisal function, from which we can report on this KPI in detail, if required.
Aspect: Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.
In governance bodies and in each employee category we need to report on the breakdown with respect to gender, age, minority group and any other indicators of diversity.
From Employee master data and the list of employees under each category, we can iteratively find out the breakdown, according to gender and age. For minority group and other indicators, the organization needs to be clear on what are the other indicators, it is going to report on. The HR master data needs to be enhanced accordingly, to include these parameters.
LA14 Ratio of basic salary of men to women by employee category.
Perhaps the infotype, “0008 HR Master Record- Infotype 0008 (Basic Pay)” can provide this KPI. For each employee category, list out male and female employees, and find out the average basic pay for men and women in each category. Perhaps we can leverage the infotype for personnel Data – 0002, which contains information on gender along with infotype for basic pay 0008.
Of the 14 KPIs listed here,
Majority (8) can be taken from HCM module, viz, LA1, LA2, LA4, LA5, LA10, LA12, LA13, LA14.
Qualitative KPI are LA3, LA8, LA11.
EHS/ SuPM/ Manual data collection can be used for LA6, LA7, and LA9.
This blog series “Integration Aspects in Sustainability Reporting” is an effort to explain how the standard modules in ECC can be leveraged in taking the Sustainability Report and how organization can leverage ECC or combination of ECC with BI or ECC + BI + SuPM to achieve this end. This has been summarized in my blog series “SAP Sustainability Solution – Approaches for Sustainability Reporting – Part 3“.
Well, the only topic left out is Environmental KPI. This will perhaps be written by one of my colleagues having expertise in that area.
When analyzing all the KPI and its integration to various modules for Sustainability Reporting, we have found quite an interesting trend/ pattern. Instead of publishing it as a blog, we will perform some more detailed analysis and come forth with a white paper on the same. I have thrown a little light on the hazy topic – Sustainability. I hope when Sustainability topic gains more momentum, my work will get more attention. For now, I am taking a break, see you later.
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.