By Joe Giordano

Voluntary Human Resources compliance audits can save a company significant time, energy, and money by ensuring the many facets of human resources related laws are being complied with.

Human Resource audits usually consist of two (2) main functions:

(1)An evaluation of operational human resource centered policies, procedures, and practices.

(2)A review of human resource related indicators such as turnover, absenteeism rates, time to fill vacancies, etc.

There are many benefits a company can obtain by conducting a human resource based audit. Examples of such benefits are:

Ensuring legal compliance with the four (4) areas most vulnerable to legal actions:

(A) Establishing means to measure performance

(B) Identifying areas within Human Resources that require improved efficiency and productivity

(C) Identifying potential cost reduction opportunities

(D) Ensuring proper classification and utilization of exempt and non-exempt employees

(E) Comparing current practices with industry accepted best practices

Particular areas within Human Resources that should be included as part of the audit would be compliance with:

Some of the functional Human Resources areas that should be included in the audit are:

An extensive full-scale audit of the entire Human Resources Department should be done initially. Once completed, most companies are able to schedule annual mini-audits to ensure compliance with regulatory guidelines and to ensure the most current and best practices are being utilized to effectively operate the Human Resources function.

For information on Human Resources audits or for any other training needs contact Joe Giordano, Consulting, Training, and Development Services, at (410) 860-6664