1. Conducting a Successful HR Assessment
Jennifer Kramer, SPHR, SHRM-CP
Managing Director
Sikich HR Consulting

2. Learning Objectives Why conducting an HR Assessment is a good practice
Different kinds of HR Assessments
The assessment process
What to include in your Assessment
Overall goal is to ensure compliance and increase effectiveness
of your HR policies and procedures

3. Why Conduct an HR Assessment?

4. What Keeps You Awake at Night?

5. Increased EEOC Claims

6. External and Internal Forces
Sarbanes-Oxley requires effective internal financial controls
Securities and Exchange commission Guidelines require management to “…exercise reasonable management oversight.”
The U.S. Federal Sentencing Guidelines require that management demonstrate that it took reasonable steps to engender an organizational culture of compliance and to “monitor and audit” compliance activities, behaviors and results
Governmental agencies (EEOC, NLRB, DOL, etc.) are attacking systemic noncompliance.

7. Importance of Human Capital
Human capital is becoming the single most importance factor in an organizations…a source of innovation and a driver of business success
Compliance
Productivity
Sustainability, and
Profitability

8. The HR Assessmsent

9. What is an HR Assessment?
Objective and systematic evaluation that provides:
Compliance and governance requirements are being met
Business and talent management objectives are being
Human resources management risks and fully identified, assessed,
and managed
The organization’s human capital adds value

10. Benefits of the HR Assessment
Compliance regulation and/or company policies
Ensuring alignment of HR management
Assessing the outcomes
Establishing an “early warning system”
Exploring effective utilization of human resources
Streamline work process
Measure continuous improvement
Maintaining or enhancing the organization’s reputation in a community
Instill a sense of confidence in the human resources

11. Types of Assessments Compliance Best Practices Strategic
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 practice 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 (i.e. – payroll, performance management, record retention, etc.)

12. When To Conduct an Assessment
Annual Spring Cleaning
Merger or Acquisition
Major regulations or legal changes
Certain employment thresholds
Business growth

13. When to Conduct an Assessment
New facility opening in another state or country
Employee morale, high turnover, attendance or excessive discipline
Prepare for potential government audit or litigation
Taking over the HR function

14. Conducting an HR Assessment

15. Scope of the Assessment
Planning Stage
Who will conduct assessment?
What do you want to audit?
What assessment tools will you use?
How will the process be rolled out?
How will results get reported?
Who will get the results?

16. Gaining Buy-In Stage Explain the reason for it
To protect them and the organization
To help them understand policies, procedures and laws
To gain a better understanding of their department
To help them set best practice procedures
To avoid costly and time consuming litigation
Show managers the relationship of key indicators to the organization’s
goals

17. What to Include in Your Assessment
The Foundation
Managers and Supervisors
Processes
Stakeholder Input
Workforce Analysis and HR Metrics

18. Review Your Foundation
Recruitment and Selection
Training and Development
Compensation
Performance Management Process
Recordkeeping and Reporting
Leave Administration
Workplace Practices
Benefits

19. Evaluate Managers… How to handle complaints of harassment
Difference between exempt and non-exempt
Giving employment references
FMLA and other leaves of absence
Consistency in applying policies and procedures
Sick and vacation tracking
Employee files

20. Review HR Processes
Forms, policies, letters, approvals, workflow, etc.
On-Boarding
Processing payroll
Administration of benefits
Termination of an Employee
Leave administration/Attendance Tracking

21. Survey Your Internal Customers
What does management see as the department’s priorities?
What do employees see as the department’s priorities?
Is HR effectively meeting the needs?
Recruitment
Training and Development
Employee Relations
Open Door Policy
Communications
Salary Administration
Benefits Administration
Policies and Procedures
Performance vs. Importance

22. Workforce Analysis and HR Metrics
Diversity
Employee Relations
Job satisfaction
Legal complaints or grievances
Wage and salary market indicators
Health Care Cots per Employee
Incentives / Perks / Total Rewards
Impact of compensation programs
Cost per Hire
Time to Fill
Absence Rate
Turnover Rate
HR Expense Factor
Training Expenses

23. Develop the Assessment Questionnaire
Partner with Sikich
SHRM
Department of Labor
Equal Employment Opportunity Commission
Equal Employment Advisory Council

24. Gather and Analyze Information
Assessment Tools
Interviews
Surveys / Test
Focus Groups
Document Review
File Reviews
Questionnaires
Samplings
Reports

25. Findings and Recommendations
Executive Summary
Assign risk level
Written report
State the facts
Avoid opinions
Provide back up where needed
Departments involved

26. Findings and Recommendations
Action Plan
Recommend one or more strategies for improvement
Identify action items and to whom each is assigned
Establish realistic priorities
Set time frame for follow-up
Keep in mind resistance to change, but don’t be satisfied with
adequacy—strive for continuous improvement.

27. Pitfalls to Auditing HR
Lack of management commitment
Choosing too great a scope
Underestimating the time it will take
“No news is good news” style of management … we do not want to “stir up trouble”
Long tenure in the position
As with accounting audits, the findings and recommendations from HR audits are only as good as the information provided. If you are not entirely honest and objective, no purpose is served.

28. A Word of Caution
HR assessment reports are increasingly being used to report audit findings to wider audience
Investors
Major stockholders
Venture capitalists
Governmental agencies
Civil rights groups
Plaintiff attorneys
HR assessment findings include proprietary and confidential
information and in many cases produce discoverable information

29. Closing Comments
The Optimal Outcome is to take HR to the next level Embrace a well-executed HR assessment as an important tool for creating, updating and executing HR strategies and best practices that are linked to and play a vital role in the company's strategic planning and execution

30. Questions or Comments?

31. Jennifer Kramer, SPHR. SHRM-CP Managing Director
Human Resources Consulting Services
Sikich LLP