Human Resources Audit
creating systems that develop motivated employees
The McGrath Human Resources Group offers a wide array of human resources consulting services for municipal entities and businesses (union and non-union).
IMPROVING CUSTOMER SERVICE
Your organization serves customers through human interaction. Your human resource policies and systems portray and enhance the culture of your organization. Intelligent HR systems — including recruitment, compensation, evaluation, and employee relations — encourage optimum customer satisfaction. A Human Resource Audit will reveal problem areas and provide recommendations and suggestions to ensure an integrated approach to recruiting and maintaining an effective and efficient workforce.
WHAT IS A HUMAN RESOURCES AUDIT?
A Human Resources Audit is a comprehensive review of current human resources policies, procedures, documentation, and strategies. The audit will establish best practices, identify opportunities for improvement, identify areas of improvement and enhancement, and ensure compliance with ever-changing rules and regulations.
HOW DOES A HUMAN RESOURCES AUDIT WORK?
A Human Resources Audit involves systematically reviewing all aspects of human resources. It can be comprehensive or specifically focused within the constraints of time, budgets, and staff.
WHAT IS THE BENEFIT OF A HUMAN RESOURCES AUDIT?
Quality human resource policies and systems:
- Align HR systems with organizational vision, mission, values
- Ensure HR systems mesh with the culture of your organization
- Ensure effective utilization of organization's human resources
- Review systems to ensure compliance with a myriad of administrative regulations
- Perform 'due diligence' review for elected officials/ organizational administration
- Establish a baseline for future improvement
WHAT IS INCLUDED?
Sections of review include:
- Hiring and orientation
- Performance management system
- Job descriptions
- Fair Labor Standards Act (FLSA) review
- Policy & form review
- Policies & procedure review (Employee Handbook)
- Form review
- Personnel file review
- Record retention policy review
- Management/labor relations
THE COST OF NON-COMPLIANCE
Because of the multitude of laws affecting each stage of the employment process, it is extremely important for an employer to regularly review their policies and practices to ensure regulatory compliance to avoid potentially costly fines and/or lawsuits. An employer overlooking regulatory compliance with their human resources practices could face:
- A fine of $1,100 for any violation of the appropriate payment of overtime for non-exempt employees in accordance with the Fair Labor Standards Act
- Penalties as high as $10,000 for each occurrence of failing to post required safety notices or keeping accurate records
- Fines up to $1,000 per employee for non-compliance with the Federal Immigration Reform Act
While penalties such as these help define the risk of non-compliance and signify the importance of conducting periodic HR Audits, an Audit can also ensure that policies and procedures are fair and consistent across the organization and strengthen employee satisfaction.