What is an HR Audit and Why You May Need One
Progressive organizations will embrace a well-executed HR audit as an important tool for creating, updating and executing HR strategies and best practices that will provide long-term support to the organization’s vision.
A human resource audit helps organizations to:
- Ensure compliance with various laws and the myriad of other employment and benefits-related statutes. Governing bodies include IRS, DOL, EEOC, etc.
- Examine the effectiveness and costs of HR policies and practices and their role in the organization’s strategic planning.
- Benchmark actual against desired performance and develop an action plan for addressing shortfalls.
- Reduce costs by identifying and correcting inefficiencies and compliance problems.
A comprehensive audit will include discovery in these areas:
- Department infrastructure
- Compliance with state and federal employment laws
- Recruitment and selection processes
- Employment-related tests
- Employee relations
- Performance-evaluation/management processes
- Documentation, including employee handbooks
- Job descriptions
- Personnel records and files
- Benefits administration practices
- Benefit costs
- Exempt and non-exempt classifications
- Time-keeping and pay practices
- Recordkeeping and posting requirements
- Policies governing independent contractors
- Training and Development
- Technology
- Safety and security
- Labor relations
If you are concerned that your organization may be lacking the time or expertise to ensure full human resource compliance, contact us and we can put you in touch with the most appropriate HR resource who will be able to diagnose the problem and also correct your specific situation.
