We often recommend to our clients that they conduct an HR audit as a preliminary step in the HR outsourcing process. An HR audit can provide a baseline to prioritize an organization’s human resource needs and objectives moving forward.
During an HR audit, a Smart HR consultant conducts a thorough well-rounded review and analysis of the following HR areas:
• Legal Compliance
• Posting Requirements
• Record Keeping
• Compensation/Pay Equity
• Employee Relations
• Recruitment and Hiring
• Employee Engagement/Development
• Performance Appraisal Systems/Management
• Policies and Procedures/Employee Handbook
In reviewing these areas, the Smart HR consultant determines whether an organization is in compliance with not only federal and state laws, but also local employment laws. To make a determination, the consultant does onsite interviews with employees and management, conducts a personnel file audit and reviews important HR documents such as the employee handbook, job descriptions, Summary Plan Descriptions, offer letters, new hire packets, training materials and disciplinary documents. The consultant also conducts an in-depth analysis of HR processes and procedures such as recruiting, hiring, pay and termination practices to ensure they too are compliant with federal, state and local laws. In some cases, there isn’t a question of compliance but whether a process could be performed better. The consultant uses benchmarking data to make these determinations.
Upon completion of the audit, clients receive a detailed report followed by an in-person debriefing of the consultant’s findings and recommendations. Should the client request assistance with executing any recommendations, Smart HR is available to help every step of the way.
An HR audit can be a very valuable first step in improving an organization’s HR function or can be performed in conjunction with any other HR project. Feel free to contact us today to learn more about it.