The HR Audit involves a review of clients’ current policies and practices to identify gaps and design the most effective service strategy for the business. The HR Audit is a crucial first step that EnformHR takes when engagement begins with a new client. The purpose of the HR Audit is to identify areas of strength and weakness and where improvements may be needed. The information gathered from the audit helps determine whether current HR processes comply with State and Federal regulations and support business goals.
The HR Audit compares current policies and procedures and compares against HR Best Practices. The examination goes further than just employee record keeping. A proper audit can help identify initiatives to ensure the organization is properly utilizing their human capitol, examining multiple factors such as position-fit, productivity, employee engagement, and turnover.
The HR Audit includes a comprehensive discussion and review of current practices, policies, and procedures, and often includes benchmarking against organizations of similar size and industry. After the audit, EnformHR will provide a summary of findings and recommendations for the next steps. Specific areas examined in the audit include:
- Equal Employment Opportunity (EEO)
- Age Discrimination in Employment (ADEA)
- Americans with Disabilities Act (ADA)
- Fair Labor Standards Act (FLSA)
- Record-keeping (personnel files, I-9s, applications, etc.)
- Compensation/pay equity
- Employee relations
- Performance appraisal systems
- Policies and procedures/employee handbook
- Health, safety and security (OSHA compliance, Drug-Free Workplace, Workplace Violence)
Legislation affecting all aspects of Human Resources is constantly evolving and the legal ramifications of noncompliance impact the HR department, the organization, and its employees. An HR Audit can help to ensure compliance while measuring the effectiveness of HR programs in developing and motivating employees. At a minimum, the results of an audit help determine what HR initiatives need to be put in place, how these changes will impact the organization’s bottom line, and how to prioritize problem areas in terms of significance.