With the tax deadline fast approaching, many of us have turned our attentions to methods for avoiding an audit. However, in business, there is an audit that can be vital to the maintenance and improvement of your company.
The human resources audit is a process for which companies review all HR activity to identify strengths and weaknesses in order to develop a plan for improvement. HR audits are critical because of the overarching nature of HR. HR is a driver for the recruitment, hiring, and retention of your workforce. It also governs compliance with a variety of state and federal laws. Performing an audit ensures that the employee experience at your company is a positive one, which can promote productivity.
When conducting audit, you should review processes in the following areas:
The most important function of an HR audit is to ensure compliance with state and federal laws governing employment. This is a big task considering the number of laws that govern employment and the heightened aggressiveness of certain government agencies. In terms of compliance, here are a few areas that your audit should focus on:
- I-9 Forms: With a greater focus on reducing the number of undocumented workers in the U.S., ICE has greatly increased their auditing efforts. It’s important that forms are turned in on time and are accurate.
- Recruitment and Selection Process: Companies must ensure that they comply with the policies outlined in Title VII of the Civil Rights Act of 1964. This means they must show equity in all hiring processes. If you have questions about compliance with rules governing the hiring process, consult a lawyer who specializes in employment discrimination defense in Tampa.
- Wage and Hour Compliance: Companies must comply with rules for employee classification found in the Fair Labor Standards Act. For example, employers must ensure that workers are correctly classified as an “employee” or an “independent contractor.” These rules govern how workers get paid and rules involving overtime.
Effectiveness of Your HR Process
Since HR is such an important function within companies, it’s a great idea to routinely evaluate the effectiveness of its processes. Along with compliance, an audit of the HR process should focus on the following areas:
- Effectiveness of technical systems
- People development
- Appropriateness and effectiveness of policies and procedures
- Hiring process
Regardless of industry, it’s critical to review all HR processes. Companies continually evolve. By reviewing your HR process, you ensure that the evolution is positive.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.