HR Audits and Updates
Organizations often conduct audits to determine the level of risk for an existing business entity or in anticipation of a purchase or Merger & Acquisition, to create a baseline for prioritizing future projects, or to determine whether HR is managed in a cost effective manner. When conducting an HR audit, there is typically an evaluation of the company’s operational HR policies, practices and processes and a review of HR indicators such as those related to hiring, performance management, discipline or termination. Some additional risk areas that should be carefully reviewed include:
- Misclassification of exempt and nonexempt jobs
- Inadequate or improper personnel files
- Prohibited attendance policies
- Inaccurate time records
- Insufficient documentation
One of the first places to begin your review of company operational HR policies, practices and processes is with your handbook. Does your handbook include all of the basics and most importantly, are employees aware of it and do the policies and procedures described in the handbook reflect your current practices? Further, in today’s business climate, your handbook should be updated on an annual basis to incorporate the newest policies. Recent handbook updates should reflect changes resulting from Genetic Information Nondiscrimination Act (GINA), the American’s with Disabilities Act (ADA), Family Medical Leave Act (FMLA) (Military Leave, Qualifying Exigency, Break times for Nursing Mothers), Organ Donor and Bone Marrow Leave (CA), Text Messaging bans (30 states, DC and Guam) and the increased use of social media.