This metric is based on the Global Reporting Initiative (GRI) Standard Guidelines.
In the context of the GRI Standards, the social dimension of sustainability concerns an organization’s impacts on the social systems within which it operates. GRI 401 addresses the topic of employment.
This includes an organization’s approach to employment or job creation, that is, an organization’s approach to hiring, recruitment, retention and related practices, and the working conditions it provides. GRI 401 also covers the employment and working conditions in an organization’s supply chain.
The number, age, gender, and region of an organization’s new employee hires can indicate its strategy and ability to attract diverse, qualified employees. This information can signify the organization’s efforts to implement
inclusive recruitment practices based on age and gender. It can also signify the optimal use of available
labor and talent in different regions.
A high rate of employee turnover can indicate levels of uncertainty and dissatisfaction among employees. It can also signal a fundamental change in the structure of an organization’s core operations.
An unevenpattern of turnover by age or gender can indicate incompatibility or potential inequity in the workplace. Turnover results in changes to the human and intellectual capital of the organization and can impact productivity. Turnover has direct cost implications either in terms of reduced payroll or greater expenses for the recruitment of employees.
In 2018, the GRI G4 Sustainability Reporting Guidelines were superseded by the GRI Sustainability Reporting Standards (GRI standards). For this metric, the code G4-LA1-a is used in company reporting prior to 2018, and the new GRI 401-1 code used in reporting from 2018 onwards. The methodology for the former G4 standard for this metric can be found here.