| Conducting an internal audit may not top the list | | | | if there is a good first or second place to begin |
| of things HR professionals look forward to doing, | | | | with, but there are plenty of places to get to. An |
| but the importance of reviewing HR practices | | | | HR audit should ask the following questions: |
| should not be understated or ignored. Simply put, | | | | * Do you have all the required postings present |
| an HR audit can be the savior that keeps your | | | | and visible? |
| company out of the court room. | | | | * Does your company follow all appropriate I-9 |
| Think about this: On average, there are more | | | | requirements, including proper recording? |
| than 450 employment lawsuits filed each week. | | | | * Do employment applications contain any |
| The most common target is private employers | | | | questions that are illegal? Are they properly |
| with between 15 and 100 employees. While you | | | | maintained? |
| may not be able to control if somebody files the | | | | * Is the employee handbook current and legal? |
| suit, are you prepared to defend the company | | | | Do employees have a copy? Have they signed |
| when someone does? With plaintiff attorneys on | | | | documentation showing that they have obtained a |
| the offensive, joined by an administration and | | | | copy? |
| Department of Labor sympathetic to that cause, | | | | * Are any files stored in the managers' desk files |
| employers need to be ready to handle whatever | | | | (rather than properly placed in records file)? |
| is thrown their way. | | | | * Are all OSHA logs are up to date, completed, |
| But the reasoning behind internal HR audits | | | | and available to employees? |
| extends further than lawsuit defense, for | | | | * Do you have an electronic communication policy |
| example: | | | | (this includes email, social media, etc.)? |
| * Audits are a sure way of making sure the best | | | | * Do you have a policy for company issued cell |
| practices and HR metrics are being followed by | | | | phones (how often can they talk, can they text/ |
| the company | | | | send pictures, for personal use or just business, |
| * They help with process improvement | | | | etc.)? |
| * They can lead to fewer errors and complaints | | | | * Do you have a legally sufficient anti-harassment |
| * Can increase readiness for government | | | | policy? Does it include a strong anti-retaliation |
| investigations | | | | policy? |
| * May lead to a reduction in EPLI (external | | | | * Do you have a grievance or complaint |
| insurance) coverage costs | | | | procedure in place that employees are aware of |
| * Build management support to come on board | | | | and feel like they can use? |
| with HR practices | | | | * Is the at-will language in your handbook legal? |
| * Lead to a better use of employment law | | | | * Is the paid time off policy clear? |
| expenses | | | | * Do you have a satisfactory equal opportunity |
| So, what exactly does an HR audit do? As with | | | | employment policy? Is it noted on job postings? |
| any audit, it takes a look at just what you are | | | | * Are FMLA policies and procedures up to date? |
| doing a little more closely. In this case, it | | | | * Do you have substance abuse policies in place? |
| measures the health of current HR practices. An | | | | * Are employees aware of safety or accident |
| HR audit will help you identify deficiencies and | | | | reporting policies? |
| provide direction in the following subjects: | | | | * Are ERISA and COBRA requirements met and |
| employment practices, employment policies, | | | | followed through on? |
| employment related documentations, employment | | | | * Are ADA policies up to date and followed? |
| law compliance. | | | | * Does the company comply with all FLSA |
| Bottom line: an internal HR audit is an opportunity | | | | regulations? See this article for more information |
| to save the company money and avoid problems | | | | on wage and hour requirements under FLSA. |
| they may otherwise face. At the end of the day, | | | | * What are your recruiting procedures that you |
| an audit should help you to develop more | | | | have in place? Are you looking for the right |
| consistent policies, treat employees more fairly, | | | | candidate? Do you have an effective (and legal) |
| and in return the employees become more | | | | application? Do you conduct a background check |
| productive. | | | | (criminal check plus work history/ references)? |
| When it comes to an audit, there are two main | | | | Who handles the interviews? |
| areas of focus- compliance and best practices. | | | | * Do you have a proper onboarding practice for |
| Compliance looks at the legal aspects of HR and | | | | new employees? |
| includes areas such as missing, outdated, or | | | | * Do you have a formal performance evaluation |
| conflicting policies or inconsistencies between policy | | | | procedure? What about a disciplinary policy |
| and practice. The practices pays attention to | | | | procedure? Is it followed consistently? |
| what is (and isn't) working for the company | | | | * Are you properly retaining all records for the |
| including the current processes (on issues such as | | | | appropriate time as required by law? |
| recruiting, discipline or terminations) and | | | | And as you move forward, remember these two |
| procedures (on issues such as performance or | | | | rules from HR 101: document everything (juries |
| evaluations). | | | | will only believe what you have in writing) and be |
| To get started, you will need to develop an audit | | | | consistent (a policy isn't a policy unless it's followed |
| team. This includes key management personnel. | | | | every time). |
| You want people who can give you clear input of | | | | For a FREE hour-long presentation from two |
| what exactly is going on. Feedback from | | | | leading employment attorneys on this subject, |
| non-management employees is helpful, but they | | | | please login to our Insider Network at |
| should not be part of a formal 'team.' | | | | Note: This information is not intended as legal |
| So you have the team and are ready to go. | | | | advice or counsel. Please seek a qualified attorney |
| Which areas should you look at first? I don't know | | | | for more information. |