It is vital that the distinction between practice and decision standards be as clear in the world of human capital as it is in the world of finance and accounting.
Like GAAP standards, emerging HR standards should describe typical practices or measurements that are “feasible at scale” for most organizations. As more organizations adopt them, we will see more common approaches to measuring things like employee turnover and cost-per-hire, and the resulting data will be more easily compared and analyzed. As research uncovers links with organizational performance, we may in the future see a better case for a set of decision standards that can justifiably be connected to organizational performance. Practice standards are a prerequisite to decision standards in HR, just as they were in finance and accounting.
Via Bond Beebe Accountants & Advisors, Alain Platevoet