In Part 1 of this series, it was shown that ESRS S1 (Own Workforce) and DIN EN ISO 30414 overlap in five areas:

Learning & Development, Diversity & Pay Equity, Recruitment/Turnover/Retention, Health & Safety, and Engagement & Culture.

These intersections are crucial. They form the basis for consistent HR KPIs. Such KPIs are suitable both for internal management and for external sustainability reporting. However, the key is not to measure everything. Instead, companies should deliberately prioritize those indicators that generate strategic relevance.

Part 2 demonstrated that these data points are much more than pure reporting figures. Rather, they reveal clear cause-and-effect relationships:

  • Learning & Development increases productivity, strengthens innovation, and has a long-term positive impact on CAGR and ROIC.
  • Diversity & Pay Equity foster engagement, employer branding, and better decisions; at the same time, they reduce recruitment costs and increase EBIT margin or TSR.
  • Recruitment, Turnover & Retention ensure stability, reduce frictional losses, and improve revenue per FTE as well as EBIT.
  • Health & Safety reduce absenteeism and costs, while contributing to cost-to-serve and profit per employee.
  • Engagement & Culture serve as leading indicators for performance, retention, innovation, and cash conversion.

These correlations are hypotheses. Each company must verify them with its own data. Nevertheless, they provide a valuable basis for linking HR KPIs with financial performance indicators such as EBIT margin, ROIC, or revenue per FTE.

This is exactly where Part 3 comes in. The focus is on the question: How can companies move from a confusing KPI landscape to a core set of effective steering KPIs? And how can this core set be integrated into strategy, governance, processes, and tools?

Practical Examples from the DACH Region: Four Impact Logics

In my work with clients, I see that successful companies don’t just collect HR data. They also translate this data into clear management logics. Four examples from the DACH region show how different levers can work and how strongly they contribute to financial results.

Allianz: Diversity & Equal Pay as a Innovation Driver

Allianz closely links diversity and pay equity with engagement, reputation, and innovation. This is deeply embedded in its corporate culture. Equal pay audits, diversity KPIs, and networks like “Allianz Pride” act as central levers. The result: rising inclusion scores, international recognition in diversity rankings, and a measurably higher return on innovation. In this way, diversity shifts from a compliance issue to a driver of cash conversion and competitiveness.

B. Braun: Occupational Safety as a Resilience Booster

B. Braun has strategically realigned its occupational safety policy. With ISO 45001 certifications, a globally harmonized LTIR standard, and a systematic near-miss program, the number of workplace accidents was reduced by nearly five percent. Fewer accidents mean fewer days lost, lower costs, and greater operational resilience. This is a clear competitive advantage in global supply chains.

Siemens: Learning & Development for Productivity & Growth

Siemens is investing heavily in upskilling to build future skills. Digital learning platforms such as Coursera and predictive analytics link learning participation directly to retention and performance. In the field of the GenAI alone, more than 35,000 employees completed over 229,000 learning hours. This not only strengthens innovation, but also boosts productivity and reduces turnover in critical roles.

Würth: Pipeline Management for Stability & Efficiency

Würth addresses the skills shortage through consistent pipeline management and analytics-based retention. As documented in the Würth Group Sustainability Report 2020-2022, critical roles could be filled more quickly and internal mobility was increased. In some clusters, more than 40% of leadership positions were filled internally. This sends a clear signal of stability, lower recruitment costs, and higher efficiency.

Conclusion: Measure Less, Manage Better

The examples make it clear: collecting a large number of HR KPIs makes little sense. What matters is selecting and linking the few relevant KPIs in a way that generates steering impact:

  • Allianz shows how diversity & equal pay drive innovation.
  • B. Braun uses occupational safety as a lever for resilience.
  • Siemens demonstrates that learning & development drive growth.
  • Würth proves that pipeline management ensures stability.

The common denominator: HR data is translated into HR driver trees and causal paths connected to financial outcomes – from cash conversion to ROIC. In this way, reporting becomes real management.

For executives, this means: not “measuring more and more,” but focusing and embedding. Those who build the bridge from HR KPIs to business impact turn human capital into a true value driver.

I am happy to share my experience on how these approaches can also be implemented in your company. Feel free to reach out. I look forward to the dialogue.