The Human Resources Audit
The purpose of a Human Resources
Audit is to provide a professional and objective perspective on a company’s Human Resources efforts, identification of areas that can be improved and recommendations for changes, including those that involve compliance with various state and federal laws.
A Human Resources audit assesses the company’s level of compliance with federal and state laws and evaluates the effectiveness of the overall Human Resources function. In an effort to address these complex issues both small and large companies are increasingly auditing their Human Resources functions in order to stay compliant.
The First Step in the Human Resources audit procedure is to meet those employees who may be currently performing the company’s Human Resources functions.
The Second Step is to review, evaluate and make recommendations on the following:
- Recruitment and selection
- applications, legal and illegal interview questions, reference check releases, Fair Credit Reporting Act compliance, job descriptions, selection tools, job
- methods, consistency, market analysis, alignment of performance management with salary
- Employee Relations
- performance management, disciplinary procedures, counseling, employee recognition, termination procedures, exit
- Mandated benefits
- social security, unemployment insurance, worker’s compensation,
- Optional group benefits
- medical, dental, life and disability insurances, time off benefits, flexible benefits, retirement plans, employee assistance programs, tuition assistance, other
- compliance with the Fair Labor Standards Act, designation of “exempt vs. non exempt “ employees, independent
- personnel files, confidential records, payroll records, I-9 forms, W-4 forms, disciplinary forms, annual evaluations, pre-employment health screenings, medical/worker’s compensation
- Training and development
- new employee orientation, staff development, leadership, sexual/workplace harassment, Family and Medical Leave, effective
- Employee communications
- company handbook, recognition programs, announcements, staff meetings, mandated
- Internal policy development
- organization wide policies on equal employment opportunity, smoking, sexual/workplace harassment, time off, holidays, sick time, absenteeism and tardiness, personal appearance, solicitation, drug and alcohol, leave of
Properly conducted audits can identify practices that must be changed, highlight areas with room for improvement and focus on positive policies that should be continued. It has been proven that the seven areas where employers are most likely to make errors are:
Misclassification of exempt and non exempt jobs
Inadequate Personnel Files
Prohibited Absentee Policies
Inaccurate Time Records
Independent Contractor status
PHHR, through our Human Resources Audit and other available services, will give
your company appropriate and actionable alternatives and solutions to undesirable situations
that keep you awake at night! Learn more
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