HR AUDITS By Robin Bullock PHR Conducting a Successful Audit

Why do an HR Audit? 1. To ensure legal compliance of the HR department functions and employee related policies 2. Maintain healthy and successful procedures to ensure company profitability and employee satisfaction 3. Update best practices and assist with department development as it relates to company vision and mission 4. To ensure resources are allocated and HR Department maintains a healthy role in the success of the overall business 5. If no record of one has been performed

What kind of Audit?  Compliance: Focuses on how well the company is complying with current federal, state and local laws and regulations.  Best Practices: Helps the organization maintain or improve a competitive advantage by comparing its practices with those of companies identified as having exceptional HR practices.  Strategic: Focuses on strengths and weaknesses of systems and processes to determine whether they align with the HR department’s and/or the company’s strategic plan.  Function-Specific: Focuses on a specific area in the HR function (e.g., payroll, performance management, records retention, etc.).

HR Audits - What kind?  Procedures  Policies  Practices  Strategic  Functional  Best Practices  Compliance

Who & When - HR Audit?  HR Team and/ or Outside Contractor  Field offices and other locations  When do an audit? Before year end – Add this to your HR Review Semi-Annually Starting an HR Department New to job or company If one has never been done

Procedures - Examples  Recruiting & Job posting – Where, when, how, and who?  Job Descriptions Analysis – Last update, developed reflecting organizational structure, added positions  Compensation Structure  Benefit Updates  Reviews  Succession Planning  Employee Handbook  Employee Communication  What other procedures can you name that your HR Department is responsible for?

Policies  Nepotism  Vacation  Leave – FMLA  Discounts  Computer  Open door  Customer Service  Communication  Training  Compensation  Succession

Best Practices  Set up of HR Department -Structure  Set up of other department -Structure  Filing systems – Recordkeeping, Paper and Electronic Files, Access,  Measuring our HR practices against other successful companies  Determining how we add value to the company and if we are being accountable

Compliance – Federal, State, & Local Laws  I-9’s  W-4’s  Union agreements  EEO  ADA  FMLA  Minimum Wage/Fair Wage  FLSA

Top offenders…  I-9’s  Medical Information in the File  FLSA and Exempt Abuse  Communication to Employees

Personnel Files What to check  Employment/Orientation Records 1. Application or resume (keep in medical/confidential file if it has protected information on it) 2. Offer letter 3. Confidentiality/ non-compete agreement 4. Handbook acknowledgement (latest revision date_____________) 5. ð Drug testing policy acknowledgment 6. ð Drug testing consent form 7. ð Background check consent form

Personnel Files What to check  Performance Records Performance evaluation forms Self evaluations Relevant disciplinary warnings and performance improvement plans  Training Records _________________ Required training/certification General new-hire safety training checklist or acknowledgment ________ safety training Sexual harassment training acknowledgement

Personnel Files What to remove?  Remove the following types of documents from employee personnel files:  · I-9s and any copies of identification  · Investigation notes and reports  · Any drug test or background check results  · Payroll records containing SSNs or other protected information, including W-4s and garnishments  · Medical or confidential records, including anything that has protected information such as a date of birth, medical information, marital status, religious beliefs, etc. including:  o Benefit enrollment forms for current year, beneficiary forms, benefit claims  o Leave of absence documentation (FMLA and non-FMLA), disability or WC documentation

Summary of Audits  Determine what type of audit  Determine who will be involved  Set Dates to complete that are realistic  Add the audit to your review  Share the process and communicate the findings  Keep a record of dates and outcomes

Questions and Answers Thank you! Robin Bullock Slides