HR Audit

An HR Audit Why Conduct an HR Audit?

Conducting periodic HR audits is a straightforward way to minimize the risk of not complying with the local, state and federal laws. But an audit can also be focused on other area’s of your workforce management processes.

An HR audit is basically an investigation of the organization’s current practices, policies, and procedures. The price of conducting an HR audit is very small compared with the potential risk companies take from lawsuits, noncompliance penalties, and failed business strategies. Investigations by government agencies are conducted for a number of reasons, all having to do with enforcement of the laws and ensuring an employer’s compliance. Many are initiated by employee complaints, and HR audits shows area’s that are at greater risk for those audits and complaints. After you know what the risks are you can implement a plan to minimize the risk.

Types of Audits

There are many different types of HR-related audits designed to accomplish a variety of objectives, such as:

  • Ensuring compliance with federal, state, and local laws
  • Developing organizational policies and practices
  • Developing and implementing a fair and equitable compensation system
  • Establishing and supervising efficient and well-documented filing, record maintenance, and technology practices
  • Identifying strengths and weaknesses in the Human Resource Practis

The type of audit and how frequently a company conducts audits generally depends on the company’s business needs.

 When to Conduct Audits

The most important reason to conduct an audit is  when you feel that what you don’t know might cause some compliance risks. It is often times recommend to conduct an audit when there is a change in the law, after a merger or acquisition, or some other change in the composition of the company, and on a periodic basis. Areas like compensation and benefits, employee relations, hiring and termination, and training may be audited yearly, depending on the needs of your organization.

How Cultural Chemistry can help

There are many ways we can perform an audit for you, from sending you a do-it your self audit tool, to sit down with you or your employee to discuss and review your processes, to a full blown HR Audit with legal review. We can arrange all of it. The most common service provided by us, is our free mini audit and a meeting with you or the hr professional to discuss challenges and risks.

Not sure if you are 100% compliant?

Ask us about an HR Audit