Imagine sitting down with a knowledgeable HR professional to review every aspect of your employment program in a confidential, non-judgmental, educational kind of way? Imagine understanding what your organization is doing well, and also what needs to change in order to reduce your risk. Imagine being introduced to resources that can help you as you move forward to implement those changes or to make those improvements.
The purpose of an HR audit is to uncover problem areas and ensure that the organization is on track from both a compliance as well as from a best practice point of view. It is very difficult for a company to perform this task on its own. Internal biases and lack of HR expertise can impose road blocks that are difficult to overcome.
The basic scope of an HR Audit includes the following:
- Employee Handbook – necessary policies in effect, compliant with federal and state labor laws
- Employee Files – contents complete, proper segregation of records
- Employment Classification – exempt/non-exempt, employee/contractor
- Compensation Practices – record keeping, timeliness, tax treatment, deductions
- Benefit Plans – eligibility practices, employee communication, documentation
- Hiring Practices – process driven, non-discriminatory
- Termination Practices – exit interviews, final payment, benefit continuation
- Performance Management – fair and non-discriminatory
- Employee Relations – disciplinary actions, training, communication
- Recordkeeping – access, organization, proper archiving
An HR audit is an interactive exercise designed to uncover positives and negatives, introduce alternative methods, and enable management to feel confident that their company is operating as it should be. Once the audit is complete, findings and recommendations should be reviewed carefully. Next steps can be handled by management internally, or by an outside resource, but don’t ignore the results.
For more information about how an HR Audit can reduce risk for your organization, please contact Advantage Employment.