How HR Audits Keep Your House in Order

September 21, 2017 | Sabrina Clay, CCWP
 
We all have enough to do in our day, and some days maybe more than we would like. So, the thought of adding to that already-full plate seems inconceivable. Yet I am asking you to take a quick step back.  Picture your home and the care and feeding that goes into its maintenance. Dusting, vacuuming, windows, mowing grass…..you get the picture. Now think about just doing any or all of those tasks just one time.  Your house becomes disheveled, your yard an overgrown mess. This is similar to what you are doing with your human resources practices if you don’t keep your “house” in order.
 
The human resources “house” is a critical component to the strategic operation of a business.   But how do your human resources practices and processes measure up to regulations from the Department of Labor (DOL), Department of Justice (DOJ), Equal Employment Opportunity Commission (EEOC) and the National Labor Relations Board (NLRB)? Quite a daunting list!
 
An HR assessment, also referred to as an audit, is a truly objective look at your company's HR policies, practices, procedures, and strategies.  The purpose is to protect your company, establish best practices and identify opportunities for improvement.  But there never seems to be an ideal time. So take a tip from your own playbook….planning.  A terrific way to ensure a regular review is to build it into your process.  To ease the burden, you can break your audit into segments:

• Compliance: Centers on your company's compliance with current federal, state and local laws and regulations.
• Strategy: Concentrates on the strengths and weaknesses of processes and systems to determine how and if they align with the company’s strategic plan.
• 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.
• Function-Specific: Focuses on a specific area in the HR function (e.g., payroll, performance management, records retention, etc.).

 
As you are going through your audit, try to stay focused on the task.  It’s so easy to get caught in the moment, trying to “fix” things as they are uncovered.  A more practical method is to complete discovery, document your findings, then devise a plan to address areas needing improvement.  This is also a great time to uncover what is working (aka Best Practice) and not working. Once this is complete, then you can execute on your plan. 
 
By documenting your audit, you have a comprehensive record of what was completed in prior years for look-back purposes, and to see how far you have come!  Are you making the same mistakes year over year?  Are there one or two areas where you seem to struggle with consistently?  This “record” can serve you well.
 
Laws change, company visions can morph, and so should your practices. An audit will provide the checks and balances to keep your company squeaky clean.  If available time is an issue, there are firms such as H2R-Solutions that can help keep your HR “house” in premium working order.

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