1. Does the company business strategy link to Human Resources (HR)?

2. Who develop the HR Strategy? Do you assemble a cross-functional team to

develop the HR strategy

3. What does HR do in supporting the implementation of organization's strategy

4. Do you perform a gap analysis of current versus desired organizational behavior

and performance, and develop strategy to close the gap?

5. Does this company have a clear job description for each job/position? And does
each have clear competency ‘map’

6. Is the compensation system reviewed periodically? How do you evaluate your pay
structure and compensation policy at least annually and adjust it when needed?

7. Do you compare the company’s compensation programs with the market rates?
Does the current compensation system competitive

8. Who design the current compensation system? Does the BOD / HR Department
involve in formulating pay strategy?
9. Is the HR strategy aligned with the company’s strategy?
10. What does HR do in supporting the implementation of organization’s strategy
11. Do you perform a gap analysis of current versus desired organizational behavior
and performance, and develop strategy to close the gap?
12. Outline the HR department’s present role, list its function and evaluate its
effectiveness
13. Are your workforce formation fits the company’s business objectives
14. Does the company have manpower plan
15. Does every position have competency/requirement
16. Does this company have a clear job description for each job/position? And does
each have clear competency ‘map’
17. How is the recruitment methodology? Does it attract desirables workers? Does it
match capabilities of candidates with competency requirement for positions?
18. Does the company develop attractive benefit program that can retain employees?
19. Do you track your staff turnover? What is your turn over rate this fiscal year
20. How do you conduct Training Need Analysis (TNA)?
21. Do managers and employees find the training program relevant to their needs
22. What types of performance management systems do you use
23. Do you give constructive feedback to increase employee’s performance?
24. Who design the current compensation system? Does the BOD / HR Department
involve in formulating pay strategy?
25. Is the compensation system reviewed periodically? How do you evaluate your pay
structure and compensation policy at least annually and adjust it when needed?
26. Do you compare the company’s compensation programs with the market rates?
Does the current compensation system competitive?

27. Do you encourage employees to play a proactive role in improving the labor-
management relationship?
28. Does your company have Pre-Retirement Preparation Program for their
employees?
 29. Do you create an environment of open communication between employees and
management
30. What mechanisms do you have for obtaining employee feedback on a regular basis
31. Total human resources department cost (Total of questions 1 through 5
32. Human Resources (HR) Audit - Do Your HR Initiatives Treat Your Employees As
Valuable Assets

Planning and Managing Human Resources

By William J. Rothwell, H. C. Kazanas

http://books.google.co.in/books?
id=50qBiCdl8SEC&pg=PA139&lpg=PA139&dq=HR+audit+questionares&source=bl&ots=H2
yHqnJ9-q&sig=DjuU-
rekHaVs2vd0E0XWPLT6xPw&hl=en&sa=X&oi=book_result&resnum=2&ct=result#PPA137,
M2

Human Capital Measurement: Approaches, issues and case studies

Robinson D, Hooker H, Mercer M; Report 454, Institute for Employment Studies; August
2008
(read a summary)

Evaluation of Coaching in the NHS

Sinclair A, Fairhurst P, Carter A, Miller L; Report 455, NHS Institute for Innovation and
Improvement; April 2008
(read a summary)

Employee Engagement
Robinson D; Opinion Paper OP11, Institute for Employment Studies; December 2007

Engagement: The Continuing Story

Robinson D, Hooker H, Hayday S; Report 447, Institute for Employment Studies; October
2007
(read a summary)
Is HRM evidence-based and does it matter?
Rob Briner; Opinion Paper OP6, Institute for Employment Studies; March 2007

Practical Methods for Evaluating Coaching

Carter A; Report 430, Institute for Employment Studies; November 2006
(read a summary)

Customer Views of the HR Function: A Literature Review

Baldwin S; HR Network Paper MP71, Institute for Employment Studies; September 2006
(HR Network members only)

Reporting on Human Capital Management

Hartley V, Robey D; Report 423, Institute for Employment Studies; April 2005
(read a summary)

Stress Audits: What you Need to Know

Newton L, Hayday S, Silverman M; HR Network Paper MP48, Institute for Employment
Studies; April 2005
(HR Network members only)

Evaluation of Reducing Risks, Protecting People

Rick J; Research Report RR279, Health and Safety Executive; October 2004
(read a summary)

The Drivers of Employee Engagement

Robinson D, Perryman S, Hayday S; Report 408, Institute for Employment Studies; April
2004
(read a summary)

Understanding Employee Opinions

Robinson D; HR Network Paper MP27, Institute for Employment Studies; February 2004
(HR Network members only)

Measuring Up: Benchmarking Graduate Retention

Tyers C, Perryman S, Barber L; Report 401, Institute for Employment Studies; June 2003
(read a summary)

Questions to Measure Commitment and Job Satisfaction

Hayday S; HR Network Paper MP19, Institute for Employment Studies; March 2003
(HR Network members only)

Kirkpatrick and Beyond: A review of models of training evaluation

Tamkin P, Yarnall J, Kerrin M; Report 392, Institute for Employment Studies; October 2002
 (read a summary)

The Human Resource Function Audit: a six-step audit to review, measure and assess the
role, contribution and performance of your organisation’s HR function
Reilly P, Strebler M, Kettley P, Carter A, Tamkin P, Robinson D; Portfolio of Human
Resource Audits, Cambridge Strategy Publications; October 1999

The Human Resource Information System Audit: a six-step audit to evaluate and improve
the effectiveness and performance of your HR information system
Robinson D; Portfolio of Human Resource Audits, Cambridge Strategy Publications;
October 1999

The Human Resource Planning Audit: a self-assessment audit to analyse, estimate and
plan the supply and demand of your organisation’s human resources
Reilly P; Portfolio of Human Resource Audits, Cambridge Strategy Publications; October
1999

Measuring the Personnel Function

Hirsh W, Bevan S, Barber L; Report 286, Institute for Employment Studies; June 1995
(read a summary)

Measuring and Monitoring Absence from Work

Seccombe I; Report 288, Institute for Employment Studies; May 1995
(read a summary)
If your company decides to undergo
an audit, it needs to consider
several early steps.
1. How broad do you want to audit?
The scope will help you select the right person to head the audit. Defining the task is a
necessary step in efficiency and cost. A small step
would be to examine your areas where employee issues have been identified by complaints
from employees. These smoking gun areas can quickly grow into costly lawsuits. Another
obvious beginning would be to look at the hiring process, the evaluation process, the
training programs, employee discipline process and the discharge area. These areas
typically produce the most suits

2. Defining the time frame to complete the process is critical. Putting off or continuing the
process in midstream can take away from the efficiency of the process. Do it quick.

3. Make sure top management is ready to participate and embraces the value. This
example from top leaders can go a long ways in ensuring cooperation at other levels.

4. Make sure everyone is ready for change. The chance of a clean report at all levels is
unrealistic. If change will be fought don’t start what you can not complete.

5. Select the internal team to help with the audit. People with knowledge of the goals of
the company and also the nuts and bolts to achieve those goals are critical.

6. Assemble all the documents that govern the audit area and make sure they are
complete. This assembly process alone can surface some issues .

The last step is to insist on a report on the findings and recommendations for the future.
This summary can be a road map for the company. It can also be a continual reminder of
where the company wants to go in the audited areas. Piecemeal advice and comments
while the process is underway can often be misconstrued or misremembered as time goes
by. Next months article will suggest a few areas of concern in case an audit makes sense
for your company. It is not an easy process, but the rewards in the future can be
significant.

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Workplace Legislation

Document Source

The expert advice in this PLA Supplement on conducting an employment law audit was
provided by Paul I. Weiner, who has practiced in the area of labor and employment law for
over 28 years.

Mr. Weiner specializes in Human Resources legal issues. His offices are located at 200
Executive Drive, West Orange, NJ, 07052, (201-736-5959).

Copyright © 1997 by Alexander Hamilton Institute, Inc., 70 Hilltop Rd., Ramsey, NJ

07446, Stacey L. Ziegler, Editor, Christine M. Suler, Production Manager, ISSN 1044-2189

Conducting An Human Resources Audit

Employment law is an ever-changing field. Your policies and procedures must change with
the laws if you hope to avoid litigation. Companies have been told that one of the best
ways to avoid employee lawsuits is to have a comprehensive policy manual. That’s good
advice, but it’s not enough. You must regularly conduct an employment law and human
resources audit to make sure that your policies reflect changes in employment laws.

Preliminary Steps

According to Paul I. Weiner, an attorney specializing in labor law, there are two issues that
must be considered before implementing an employment law audit:

 When should the audit take place? and

 By whom should it be conducted?

Since your organization already utilizes a variety of employment-related practices and

procedures, the audit should be conducted as soon as possible, if you have never audited
such procedures before. After the initial audit, follow-up audits should be conducted yearly.
When putting together an audit team, include either in-house or outside counsel, a
representative from Human Resources, and any other individuals needed to represent a
cross-section of staff functions. All team members should be warned ahead of time
regarding the handling of confidential information.

Goals Of The Audit

The review process should provide answers to several important questions regarding the
application of your company’s policies. The audit’s goals are to determine whether your
policies are being applied consistently, whether they are the norm for your industry and
geographic location, and whether they are consistently communicated to all employees.
The audit should also provide insight as to which individuals are responsible for the
implementation and enforcement of policies. Finally, it should distinguish between policies
that are applicable to nonunion employees, and the terms and conditions of employment
for employees who are represented by a labour organization.

Areas To Audit
According to Mr. Weiner, most lawsuits can be traced to four distinct stages of the
employment relationship:

 Hiring,
 Employee evaluation,
 Employee discipline or termination, and
 Post-employment.

Therefore, your self-audit should target these areas. Sample audit questions from each of
these four areas appear on the following pages. In addition to these four areas, your
employment and human resources audit should also target regulations. Here are a few
examples.

 Review all your labour contract provisions for their impact on employees with
disabilities.
 Review all job specifications for hiring and placement of employees.
 Review all employment applications for illegal questions dealing with employees.
 Review and prepare all current job descriptions setting forth essential job
elements.
 Review current facilities to ensure accessibility for individuals with disabilities.
 Review all pre-employment tests.

Sample Questions

For the four stages of the employment relationship identified by Mr. Weiner, here are some
sample audit questions. Note: The questions provided here represent a sample of what
should be included in an employment law audit. This list is not all-inclusive, and should be
adapted to meet your specific needs.

Hiring

Job Descriptions

 Do they avoid generalities, vague terms, and professional jargon?

 Are there physical requirements that don’t have a direct correlation to the job
you’re describing?
 Is there any language that could be considered sexist?
 Do they consolidate job responsibilities and list the most important ones first?
 Is there any language that discriminates against older employees?
 Are unessential requirements listed that could block the hiring of a person with a
disability?
 Do they describe what is to be accomplished, rather than the method for
performing the job?
 Are undesirable working conditions, such as worksite temperatures, noise levels,
gases, fumes, or hazardous materials, and space restrictions listed?
 Are required interpersonal skills explained?

Application Forms
 Do you have a written policy explaining how long applications will be considered
active, and when and how applicants can update them?
 Do you purge your files on a regular basis in accordance with your policy?
 Does your application have the following disclaimers?
 Employment is at-will and can be ended at any time for any reason or no
reason.
 Falsification or omission of information can lead to refusal to hire or to
discharge.
 Applicant gives employer consent to check references, verify information, and
obtain reports from consumer reporting agencies.
 Does your application ask for any of the following information that may be
considered discriminatory?
  Applicant’s sex, or sexual preference, practices, or orientation.
 Applicant’s weight or height, unless a bona fide occupational qualification
exists.
 Whether the applicant is single, married, or divorced.
 Whether the applicant is pregnant, has children, or must make
arrangements for child care.
 Applicant’s age, other than to determine that the applicant meets minimum
legal requirements.
 Dates applicant attended high school.
 Applicant’s military status, unless military status is related to his/her ability
to perform the work.
 Applicant’s memberships.
 General questions about arrest records.
 Applicant’s religious affiliation.
 Applicant’s general state of health.
 If the applicant is a citizen of another country.
 Applicant’s attitude about trade union organisations.

Employment Contracts
 Does your employee handbook contain a disclaimer that employment is at-will
which means that the employee can be fired at any time, with or without cause?
 Does your handbook contain a statement indicating that it is intended to provide
information only, is not a contract, and can be modified at any time?
 Do you have employees sign acknowledgment forms recognizing that they have
received the handbook and understand it?
 Are your disclaimers printed in large type and placed in prominent positions?
 Does your handbook indicate that serious offenses can circumvent your
progressive discipline policy and result in immediate termination?
 Does your handbook contain statements promising a promotion-from-within
policy?

References
 Does your application state that references will be checked carefully and will
influence the hiring decision?
 Do you avoid recording discriminatory information even if it is given in a reference
check?
 Does the person who is conducting the reference check understand the job
requirements?
 Do you keep written documentation on every reference check?
 Do you ask applicants to sign a release absolving previous employers from liability
for the information they provide?
 Do you understand the restrictions on gathering medical information on applicants
 Do you apply the results of your reference checks consistently to all applicants?
 Do you ask employees who are resigning or being terminated to sign a reference
request form?
 Do you authorize only a few individuals to respond to reference requests?
 Do you refuse to give oral references?
 Do you require prospective employers to furnish consent forms before giving out
references?
 Do you screen prospective employers by taking a telephone number and calling
back?
 Are your references based on both positive and negative factors?

Employee Evaluations

Performance Appraisals

 Do all evaluations follow the written schedule described in your employee

handbook and company policy manual?
  Do your evaluators have a clear idea of what are considered subjective terms in a
performance evaluation?
 Are your evaluators aware of the danger of using the performance appraisal form
as a retaliatory weapon?
 Do appraisers understand how a lowered performance rating could trigger an age
discrimination lawsuit?
 Do you require managers to explain sudden drops in performance appraisal
ratings?
 Do you have an appeals process for employees who are not satisfied with their
ratings?
 Are evaluators aware of the type of statements made in a performance appraisal
that might be considered defamatory?
 Do appraisers understand why the results of performance appraisals should be
given only to those with a need to know?

Promotions
 Do you have objective guidelines on which to base promotion decisions?
 Do you consider all promotion candidates equally, without regard to sex, race, age,
or disability?
 Are all aspects of your promotion process completely up to date?
 Do you regularly review job requirements to see if requiring less experience or
offering more training would increase your promotion pool?
 Do you keep records of all interview notes which enter into promotion decisions?
 Do you publicize requirements necessary for promotion?
 Do you check out all complaints from employees who claim they are being passed
over for promotion for discriminatory reasons?
 Do you question managers who never seem to recommend women or minorities
for promotion?
 Is there any evidence that a manager may be passing over employees for
promotion for retaliatory reasons?

Discipline

Rule Infractions

 Is the rule which was violated a reasonable one?

 Was the employee aware of the rule?
 Was the employee aware of the consequences for violating the rule?
 Does the discipline follow your progressive discipline system?
 Could the discipline be considered retaliation against an employee who has filed a
discrimination complaint?
 Did the employee offer an excuse for the rule violation?
 Could the employee have been harmed by obeying the rule?
 Does the rule violate safety or legal regulations?
 Does the rule serve a useful purpose, or is it frivolous?
 Could the employee have been trapped into a rule violation?
 Is there sufficient proof to show that the employee broke the rule?
 Are there extenuating circumstances that should be taken into account?
 Have you considered the employee’s past disciplinary record in selecting the
penalty?
 Does your Disciplinary Code or Policy comply with and are all decision makers
aware of the requirements of the Code of Good Practice on Dismissals as contained
in Schedule Eight of the Labour Relations Act, 66 of 1995.

Poor Performance
 Has the employee been properly warned about his/her performance?
 Was the employee given adequate training and reasonable improvement goals?
 Have you carefully reviewed the employee’s prior disciplinary history?
 How have you handled similar performance problems in the past?
 Have you considered any new information that may be related to the problem?
 Have you checked company policy to ensure consistency and fairness?
  How do you plan to involve the employee in helping to set improvement goals?
 Does the employee understand what can happen if improvement goals are not
met?
 Could a basic review or additional training improve performance?
 Does your Disciplinary Code or Policy comply with and are all decision makers
aware of the requirements of the Code of Good Practice on Dismissals as contained
in Schedule Eight of the Labour Relations Act, 66 of 1995.

Suspension
 Does the suspension follow the progressive discipline policy spelled out in your
handbook or policy manual?
 Is the suspension decision the result of a fair, proper procedure?
 Was the employee properly warned about the possibility of a suspension?
 Does the documentation provide a factual basis that justifies the suspension?
 Could the suspension be seen as a form of retaliation?
 Is the employee being suspended a member of a protected class or has he/she
filed a discrimination complaint?

Termination
 Has the termination decision been compared to other penalties imposed on other
employees for similar infractions?
 Is the termination consistent with the employee’s discipline record?
 Are there any potential legal problems, such as age, race, or sex discrimination;
wrongful termination; or sexual harassment?
 Has the employee been properly warned and given sufficient time to improve
performance or behavior?
 Is the offense for which the employee is being terminated spelled out in the
handbook or company policy manual as an offense warranting discharge?
 Was the terminated employee given the right to use the company’s complaint or
review procedure?
 Do you have the documentation to show that the employee was given a sufficient
amount of time and help to remedy the problem?
 Have you given full consideration to the employee’s length of service and past
contributions to the company?
 Have you considered all possible alternatives to discharge, including reassignment,
early retirement, or voluntary resignation?
 Does the employee have any pending litigation against the company? If so, could
the termination be considered a form of retaliation?
 Does your Disciplinary Code or Policy comply with and are all decision makers
aware of the requirements of the Code of Good Practice on Dismissals as contained
in Schedule Eight of the Labour Relations Act, 66 of 1995.

Post-Termination
 Do you conduct an exit interview with employees who quit or who are terminated?
 Does your documentation support your termination decision?
 Were you able to reduce tension and resentment by showing the employee that
he/she had been given proper warning and time to improve performance or
behavior?
 What reasons were given by an employee who felt he/she was being treated
unfairly?
 How did you respond to questions about providing future references?
 Did the employee request that he/she be allowed to resign in lieu of being
terminated?
 Did you agree to allow the employee to give his/her own reasons for the
“resignation”?
 Did the employee accept the termination or did he/she raise the possibility of a
discrimination claim or a lawsuit?
 Did you obtain all keys, badges, uniforms, and other security items?
 Do you have a clearly-written, published policy explaining that the company will
provide honest and accurate references to those with a legitimate need to know?
 Do you understand how the laws of defamation apply to employer references?
  Do you remind employees who are terminating, either voluntarily or involuntarily,
about your reference policy during the exit interview?

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Human Resources - scope of the study for hr audit topic in doing project

Expert: Prof R S S Mani - 2/6/2008

Question
sir,
pls guide me what to write in the scope of the study for doing mba project in the topic HR
AUDIT. kindly reply me as soon as possible.

Answer
Introduction to The Human Resources Audit

The Human Resources (HR) Audit is a process of examining policies, procedures,

documentation, systems, and practices with respect to an organization’s HR functions. The
purpose of the audit is to reveal the strengths and weaknesses in the nonprofit’s human
resources system, and any issues needing resolution. The audit works best when the focus
is on analyzing and improving the HR function in the organization.

The audit itself is a diagnostic tool, not a prescriptive instrument. It will help you identify
what you are missing or need to improve, but it can’t tell you what you need to do to
address these issues. It is most useful when an organization is ready to act on the
findings, and to evolve its HR function to a level where its full potential to support the
organization’s mission and objectives can be realized.

Who should conduct the audit?

The team that is responsible for the audit should represent a cross-section of the
organization’s staff, including line staff, middle and upper management, and those
responsible for HR functions.

How should it be conducted?

The audit process consists of a series of questions covering the eight primary components
of the HR function:
Roles, head count, and HR information systems (HRIS)
Recruitment
Documentation
Training, development, and career management
Compensation and benefits
Performance measurement and evaluation
Termination and transition
Legal issues and personnel policies
The team works to collect information to answer the HR audit questions in each of these
categories. The focus is on how these activities and tasks are actually performed in the
organization. The first step is to collect all the pertinent information. The process of getting
information, in and of itself, can be quite informative.

How are needed improvements identified?

Once information is gathered, the audit team reviews each major section and notes
disparities between paper (what we think or say we do) and practice (what we actually do,
as revealed by the answers to the audit questions). This can then be compared to best
practice (what we should do to best support our organization’s mission).
A cautionary note: Finding out what is insufficient and inadequate is the first step toward
improvement. If deficiencies are identified, it is important to take steps to correct those
deficiencies. Organizations should take that first step only when they are ready to act on
the findings, and to make necessary improvements in their HR skills, processes, and
systems.

How is follow-up and correction done?

Improving the HR system takes some time. A workplan — with a timeline, accountability,
and deliverables — should be created after the team reviews the completed audit and
identifies areas where improvement is needed. Follow-up and review should be a regular
management function, performed on an ongoing basis.

Human Resources Audit

Introduction to The Human Resources Audit

Roles, Head Count, & Human Resource Information Systems (HRIS)

How many employees are currently on staff?

How many employees are:

Regular
Probationary
Temporary
Full Time
Part Time
Exempt
Non-Exempt
What is the definition of a part-time employee? (i.e., What is the maximum number of
hours an employee can work to be considered part-time?)

What is the minimum number of hours an employee has to work to be considered full-
time?

How long is the probationary period?

Are employees aware of their status?

How long can an employee be temporary?

How many employees have supervisory responsibility?

Are there currently up-to-date job descriptions for all employees? If not, which ones don’t
have descriptions?

Are independent contractors used? If so, how many are being used? And, for what
functions?

Is the 21 point test for Independent Consultants being used for classification?

Have issues related to classification of employees been raised?

Recruitment
How did the work force get to be the current size?
What are some of your organization’s future needs for personnel?
What are the procedures for hiring in your organization?
What recruitment sources are used? (e.g., advertisements, referrals from other agencies,
personal contacts)
Are current employees given appropriate consideration for promotion or lateral position
changes?
Who does the preliminary screening of candidates?
Who selects candidates for interviews?
Is training provided for those who conduct interviews?
How is the recruitment, screening, and selection process documented?
What is the interview process that is used (e.g., individual, sequential, panel)?
Who holds final authority to hire?
Who checks references?
How are the reference checks documented?
Who makes the offer of employment?
Where is the hiring paperwork generated?
Who negotiates compensation packages?
List the practices you believe are unique to your organization.
What is the turnover rate (percent of employees leaving each year) in your organization?
Has this changed over time?
Who gives references for former employees?

It is common business practice for companies to perform an audit of their financial records
and accounting procedures. An audit may be legally required for some businesses as well
as some retirement plans. Auditors are checking for the accuracy of transactions, proper
reporting of assets and adherence to accounting standards. The auditor makes
recommendations for corrective action and future direction. This type of audit is looked
upon as a necessary part of doing business.

Employees have a significant impact on the bottom line, so an audit of the HR function
would be favorable. Audits can be limited in scope focusing on specific areas that may
need attention such as hiring practices, compensation and/or benefits, or they may be
more extensive looking at the HR function as a whole.

The purpose of conducting a human resource audit is to support the overall business plan
of the organization. The process has three parts: to identify and prioritize management
issues relating to human resources; identify gaps between the current practices and
policies with that of the business objective; and to identify any legal difference and
potential exposure. Unfortunately most companies who perform an audit only focus on
compliance and miss those items that could really make a difference in one’s business over
the long term.

The Human Resource audits should be done every twelve to eighteen months and should
coincide with the organizations business planning cycle. While some will say that the audit
should be done annually, but since it is such a large task pushing it to every eighteen
months is fine but definitely should not go beyond two years. The other option is to
establish an audit cycle to break the task into manageable sized pieces.

When planning an audit of your Human Resource function, here are a few things to
consider:

Timing: When would be the best time to conduct an HR audit is dependent upon a number
of considerations such as the audit cycles of other functions. It may be difficult to have
two audits going on at the same time.
What is the normal cycle for implementing changes? If benefits change at one time during
the year and there is a series of open enrollment meetings, that may also be the best time
to announce any changes that come out of the HR audit. So the audit should be
conducted far enough in advance of the open enrollment period to allow for development
of new HR initiatives.

Scope: What areas if not all of the Human Resource Function should be reviewed? Does
one particular area need special attention? The business plan may also identify areas for
review based upon future products, sales, marketing initiatives or expansion.

The Audit Team: When selecting the audit team, consider individuals from different
disciplines within the organization and not solely the human resources staff. This will
provide a fresh perspective for looking at the HR function.

The team coordinator may be an internal individual or an external consultant with a

background in HR. The advantages of having an external person involved, is that they
have the time to devote to this project as it is their sole job while an internal person may
still have the demands of their own position on them. As independents they do not have
cultural issues to contend with and have outside experiences upon which to form
comparisons.

Follow-up: Taking action on the audit team’s recommendation is critical to the success
and creditability of the audit. As important as selecting the audit team is the selection of
the individual or group of individuals who will be charged with the responsibility of carrying
out the recommendations and implementing the changes. This individual or individuals
needs to have the position and authority to carryout the changes and recommendations.
The reporting relationship needs to be directly to the CEO and/or the board of directors.

When done correctly auditing all or portions of the human resource function should
strengthen HR’s position and keep it aligned with the business plan of the organization.

Items to look for in an H.R. audit

Last month the topic of whether to do an H.R. Audit and methods to
approach this adventure were discussed. The following are a few areas
to consider if you have made this leap. 1. HIRING PROCEDURES start the
entire life cycle of employment so it’s logical to start with this area. You
need to look at your recruiting methods and documentation. The
advertising methods are significant from an EEOC point of view. In the
area of non-union salting situations the hiring procedures and the resume
retention policy is important. The forms in the application need a
review from a discrimination / ADA point of view.

2. RECORD RETENTION PROCEDURES

start with the interview. A policy on 1-9 retention is the start. The procedure
to retain records and call back or reject applicant’s needs examined
and put in place. Medical records procedures and drug testing methods
and results need to be based on a clear policy which is legally defensible.
3. INTERVIEW PROCESS needs to have a structure. A procedure for who
interviews, what is covered, how the job description is conveyed and how
a decision is made needs to be documented and honored. The right
to get references needs covered in the application, and the procedure on
follow-up needs to be documented. If a job description has some aspects
that could exclude people with some type of disability they need to be
validated as legal and supported by the nature of the job.
4. A solid and workable DISCRIMINATION POLICY AND PROCEDURE
needs to be documented and given to employees. A record keeping
system of how and when this procedure is used is important to show it
works.
5. A procedure for TRAINING AND INTRODUCTION needs to be in
place in order to jump start the involvement of the employ and to get
a quick read on the employee’s long term skills.
6. A policy on ELECTRONIC USE AND MONITORING needs to be given to
new applicants. It needs to be enforced all the time.
7. EMPLOYEE PERSONNEL FILES need to be maintained according to a clear
procedure. This includes a policy on destruction of such files. Remember
in Iowa, an employee has access to such files by law following the procedure
in IC #92B.
8. EMPLOYEE HANDBOOKS need to be in place. The procedure to
disseminate them and to review them needs to be documented and
honored. The debate as to how extensive the handbook should be
needs to be resolve.
9. Procedure to EVALUATE EMPLOYEES in a timely fashion need
considered. The timing and method needs to be communicated. This
assumes that policies on absenteeism and tardiness are in place.
10. PROMOTION AND DEMOTION practices need to be reviewed in
order to have consistent handling of all similarly situated employees.
Avoid even the potential for discrimination and error on the side of too
much documentation.
11. DISCIPLINE AND DISCHARGE practices need to be critically
examined as this is the root of many law suits. Documentation and the
checks and balances to avoid varied results must be in place.
12. CONTINUING TRAINING policies for positions need to be considered.
Training should produce better employees, and it is clear that it gives
the employees the feeling of a future in the company.
13. SEVERANCE policies need to be considered to cover quits, discharges
and down sizing. Each one of these situations likely will produce a different
outcome. The more a uniform system can be created the better in order to
avoid discrimination claims.
14. WAGE-HOUR record keeping is an important area. In addition review of
all jobs to see if they fit any of the exemptions is a crucial part of this
review. A lot of money can be lost in this area if it is challenged.
15. EMPLOYEE BENEFIT plans need a constant review. The government places a large
burden on people to get the proper documentation and reports in place. This will include a
review from a HIPPA aspect to the COBRA procedures. A clear assignment of the task of
keeping qualified plans in place needs to be made.

16. OSHA policies, procedures and educations need documented. Training people to
comply and honor these programs can save a lot of fines and improve safety ratings. A
person needs to give this a high priority on all jobs and even in the office.

17. UNION COMPLIANCE OR AVOIDANCE procedures need to be considered. Staying in

compliance with union agreements in varied areas requires attention just as staying non-
union requires a clear goal and work assignment.

18. PAYROLL practices are significant areas to examine. This will include Davis-Bacon
compliance. A clear retention policy needs to be in place. All of this can take a lot of effort
to review. Once these areas are covered and in place the protections from legal risk and
governmental action should only need a periodic review. These practices should bring
rewards to the company that has invested time and money in such a project.
| 4 | www.mbionline.com Please feel free to call Leon Shearer with your H.R. / Labor
Relations questions at 515–480-3334.
Accountability in Human Resource Management

By Jack J. Phillips