This process is utilized to develop benchmarks and measures of Human Resources department performance. This is to make sure the HR department is meeting organizational objectives and requirements. Also, the HR Audit can identify areas that may be potential weaknesses that may lead to a lawsuit. In today’s highly regulated employment environment, there is a significant potential for legal action to be taken against an employer who does not maintain proper standards.
What Topics are in an HR Audit Survey?
HR Audit surveys may include topics such as:
HR Audit on Number of Employees:
- Total Headcount?
- Full-time / Part-time / Temporary?
- With benefits? Without benefits?
- Average years of service
- On Probation?
- On Family/Medical Leave?
- On Vacation/Sabbatical?
- By Division / Location / Department?
HR Audit on Definitions
- Hours needed to become Full-Time?
- Hours needed to become Part-Time?
- Hours worked per week?
- Time for lunch/dinner break?
- Other breaks permitted?
- Duration of the probationary period.
- Qualifies as a Staff, Supervisor, or Manager?
Required Federal Forms (Can variy based on country’s fedral law)
- File the EEO-1 form?
- Vets-100 Form?
- Veterans Preference Form?
- I-9 Form (used to verify identity and employment eligibility)? Kept on-file in HR?
- W2 / W-4 Form?
HR Audit on Personnel Files
- Where are the personnel files currently located?
- What documents are in the personnel files?
- How long are the files kept after the employee leaves the company?
- What information is removed from the personnel files and at what time after the employee leaves the company?
- What controls are in place for access to the personnel files?
- Can employees request to review their files?
- What checks are in place to ensure accurate information?
- How much of this information is stored on-line?
- Are there Job Descriptions for each position?
- Are there Job Classifications?
- Are Jobs consistently located within the job classification system?
- Do the Job Descriptions specify the minimum requirements, knowledge/skills/abilities, job duties?
- Are the Job Descriptions ADA compliant?
- Is there an organizational structure?
- Is there an Organizational Chart?
- What software is used to maintain the Organizational Chart? Can other employees use the software if needed?
- Is the Organizational Chart made public? Where is it distributed?
HR Audit on Employee Handbook(s)
- Is there an employee handbook?
- Is it distributed to new hires?
- Do the employees have to sign a form stating they read and understand the handbook?
- When was the handbook last updated?
- Do employees have access to communications through printed newsletters, website, media, other outlets?
- Who edits/controls what information is communicated?
- How often are employee updated about the company?
- How frequently are the communication tools used?
HR Information System (HRIS)
- Who is the system vendor?
- When was it installed?
- What platform(s) does it run on?
- Is it integrated with other systems in the organization? (Financial, Production, Logistics)
- What modules are included in the system?
- Does it adequately handle personnel, payroll, and benefits?
- Does it track applicants?
- Does it track training and development?
- Does it record leave data? (PTO, vacation, medical, personal )
- What pre-defined reports exist?
- Can you create ad-hoc reports?
- Can you customize reports?
- Which employees have performance management systems in place?
- When was the last time the performance management system was used?
- How is the performance management system documented?
- Are the performance management results stored in the employee’s file?
- Which employees review the performance management results? Manager, Director, VP, CEO?
HR Audit on Employment Practices
- Position Requisition
- Job Classification and Evaluation
- Training and Development
- Disciplinary Actions
- When a position becomes vacant, what forms are required to have it posted (advertised)?
- Which signatures are needed on a position requisition form?
- Can the position be moved or re-located to a different department?
- What fields in the HRIS system are used to track the open position?
Hiring / Selection
- Sources for Recruitment
- Public notice in newspaper / online?
- Requirements placed in job ad?
- Use web-databases and web-recruiting sites?
- What criteria are used to evaluate applications (applicants)?
- Are the criteria pre-defined?
- Educational minimum requirements?
- Job Interview?
- Who is(are) the Interviewer(s)?
- Are interview questions pre-defined for the position? Who defined them?
- Is there an “Interviewing Guide” (Interviewer Guide)?
- Check References?
- Background checks?
- Verify employment history?
- Verify prior salary (salary history)?
- Contact previous supervisor?
- Position Descriptions
- Knowledge, Skills, and Abilities
- Do you track EEO data of the applicants?
- Do you perform background checking?
- Are applicants required to take tests/skills assessments?
- Who designed the tests / assessments?
- Are the tests/assessments validated?
- Skills Tests
- Do any positions require medical tests/screening?
- Do you perform drug testing/screening?
- Are psychological or personality tests used?
- Do you use assessment centers?
- New Hire Orientation
Policies and Regulations
- Disabilities Act (DA)
- Age Discrimination in Employment Act (ADEA)
- Equal Pay Act
- Fair Labor Standards Act (FLSA)
- Occupational Safety and Health Act (OSHA)
HR Audit on Record Keeping
- Date of hire
- Date hired into this position
- Anniversary date
- Performance Management/Appraisal results
- Disciplinary notices
- Job Classification
- Starting Salary
- Last Salary adjustment
- Training and Development activities
Compensation Administration and Systems
- Starting Pay
- Most Recent Pay Adjustment
- Pay Period
- Job Classification
- Job Evaluation
- Paid Time Off
- Vacation Pay
- Sick Pay
- Holiday Pay
- Overtime Pay
- Merit Pay
HR Audit on Job Description
- Written in simple language that is clear to understand?
- Includes a Title, Description, and Requirements?
- Physical Requirements specified?
- Working conditions specified? Any hazards?
- Includes statements or work / duties?
- Unbiased (void of sexist or racist remarks)
- Describes interpersonal relationships required.
- Key performance measures specified?
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