AUDITING HUMAN RESOURCES

Dr Sorab Sadri and Prof. Jayashree Sadri

Why Conduct an HR Audit?Routine check-up (uncover any conditions

you may have and set up a treatment plan)Determine how you can best align HR

operations with organizational goalsEnsure compliance with federal and state

regulations

Aspects of HR Audit

I

ComplianceIssues

HR Emerging IssuesExecutive management ethicsSkyrocketing healthcare costsHR outsourcingBaby boomer exodus – labor shortage, aging

and diverse workforceKnowledge work – managing knowledge

workers

Typically Out of ScopePayrollSafety and HealthWorkers CompensationRetirement PlansHealth Insurance PlansDeferred Compensation ProgramsUnemployment

HR Department Basics

Strategic Management

Strategic PlanOperational PlanHR Performance ManagementHR BudgetLegislative/Regulatory Environment

Key Administrative Advisors

People resources

Monetary resourcesTechnology resources

HR is Strategic Partner when:HR leader has/is:

strong knowledge of HR roles and functions, business strategy and operations

perceived as a credible advisor by his/her peers and executive management.

Top HR position is organizationally on the same level as other program directors and administrative directors

HR Dept. is viewed as approachable and trusted to provide accurate information.

HR is Strategic Partner when:HR Dept. is part of a network of HR Depts.

in peer organizations that share experiences, strategize regarding common problems, and stay abreast of latest HR trends and developments.

Strategic HR plan is closely linked to overall strategic plan.

Performance assessment of HR programs, including key metrics, is routinely completed.

Department Structure & Staff CompetenciesHR Organizational ChartHR Staff Competencies

HR Competencies

HR FacilitiesPhysical facilities of the HR departmentReception of job candidatesLegal and other employment noticesPrivate areas for interviews and employee

consultationsHR convenient to employeesEasy access to HR employee for questions

HR Technology & Information ControlHRISInformation Management Processes

Key HR Risk Areas

Workforce Planning & EmploymentWorkforce Needs DeterminationOrganizational DesignRecruiting ProgramsSelection ProcessContractor ManagementSuccession PlanningTurnover and Employee RelationsRegulations ComplianceFraud

HR DevelopmentTraining Needs AssessmentNew Employee TrainingTechnical TrainingSupervisory TrainingTraining AssessmentEmployee CoachingPerformance AppraisalCounselingDiscipline

Total RewardsCompensation PhilosophyJob DocumentationMarket AnalysisSalary Structure DevelopmentJob EvaluationSalary AdministrationFLSA Determination & OvertimeBenefits AdministrationPayroll

Employee & Labor Relations

Policies and ProceduresEmployee Attitude SurveysEmployment RecordsEmployee Compliant and Grievance ProcessLabor Relations

Risk ManagementSafety & Health

Outsourcing and Co-sourcingNeeds AssessmentVendor Selection ProcessVendor Management