In order for the human resources department to be an effective business partner to your organization’s operations, you need to ensure that the department is offering the best possible services to both employees and potential employees. An HR audit helps you achieve that. In addition, it protects the organization by ensuring that it is in compliance with current federal and state labor and employment laws.
Through interviews, document review, process mapping and powerful analytics, SPG conducts a complete audit of the entire HR system. This entails both an internal analysis of HR processes, people, structure, impact, and outputs, and an external analysis of best practices, comparative measurements, results, and norms within the HR industry. We will examine the following systems and processes:
- Payroll: An examination of the practices pertaining to processing employee wages, withholding appropriate taxes and remitting accurate employer taxes
- Compensation: An analysis of compensation philosophy, equal pay for comparable work, salary grades and ranges, market pay, salary increases and incentives
- Recruitment: A review of processes for sourcing and attracting potential employees, including an analysis of the return on investment of your recruiting sources such as online job postings, traditional advertising, job and career fairs, college recruiting and social and professional networking sites
- Selection and Assessment: An examination of the effectiveness and efficiency of hiring processes, including practices pertaining to preliminary screening, interviews, testing, and reference checking, employment negotiations, and on-boarding.
- Termination and Turnover: A review of termination, resignation, retirement, and down-sizing practices to ensure they protect the organization against expensive wrongful termination suits. Includes an analysis of exit interview processes and data to determine reasons for turnover, the impact it has on the organization.
- Personnel Files: An examination of the HR department’s policies and systems for handling personnel file materials, including appropriate documentation, security, storage, and access.
- Legal compliance: A review of the organization’s compliance with federal and state labor and employment laws enforced by agencies such as the U.S. Equal Employment Opportunity Commission and the U.S. Department of Labor, including a review of the extent to which the organization meets statutory and jurisdictional requirements and standards.