The word ‘audit’ does not usually elicit feelings of excitement; however, taking time to thoroughly review a process is essential to keep things running smoothly. Conducting a proactive HR audit is a great way to give yourself peace of mind (especially if the EEOC or Department of Labor come knocking!). HR audits can accomplish the following in a short amount of time:
• Keep a company in compliance with local, state, and federal employment laws
• Ensure the company is using industry best practices
• Shift the focus of HR to a strategic function – aligning the HR objectives with the overall business plan
• Identify specific areas in which the HR function needs additional support
• Improve administrative and operational efficiency
• Identify strengths and focus on continuous refinement
When conducting an HR audit, you can choose whether or not you review the entire HR function or just a specific area. The choice is yours. Here are a few great places to start your HR audit review:
Compliance, Record Retention & Policy Design
Reviewing local, state, and federal laws against your current policies is a must. Employment laws are changing all the time – best to keep on top of things to ensure you are following the latest.
Recruitment & Onboarding
Ensuring your recruitment and new hire onboarding practices are sound is critical to the growth of your company.
Compensation & Benefits
Reviewing your pay structures, payroll systems, and company benefits keeps this area running smoothly.
An HR audit can help fine-tune your annual reviews and set the foundation for succession planning.
In summary, an HR audit can help you not only achieve operational efficiency, but also take your HR-function to the next level. With sound practices and policies in place, not only will your organization run like a well-oiled machine, but you will also garner a reputation as an employer of choice. A true win-win.
Need assistance with conducting an HR audit? Email us or give us a call at 703-587-5615. We specialize in HR compliance and HR strategy. We would love to put our expertise to good use for you!