HR AUDITS

By Robin Bullock PHR

Conducting a Successful Audit
Why do an HR Audit?
1. To ensure legal compliance of the HR department
functions and employee related policies
2. Maintain healthy and successful procedures to ensure
company profitability and employee satisfaction
3. Update best practices and assist with department
development as it relates to company vision and
mission
4. To ensure resources are allocated and HR Department
maintains a healthy role in the success of the overall
business
5. If no record of one has been performed
What kind of Audit?
Compliance: Focuses on how well the company is
complying with current federal, state and local laws and
regulations.
Best Practices: Helps the organization maintain or
improve a competitive advantage by comparing its
practices with those of companies identified as having
exceptional HR practices.
Strategic: Focuses on strengths and weaknesses of
systems and processes to determine whether they align
with the HR departments and/or the companys strategic
plan.
Function-Specific: Focuses on a specific area in the
HR function (e.g., payroll, performance management,
records retention, etc.).
HR Audits - What kind?

Procedures Strategic
Policies Functional
Practices Best
Practices
Compliance
Who & When - HR Audit?
HR Team and/ or Outside Contractor
Field offices and other locations

When do an audit?
Before year end Add this to your HR Review
Semi-Annually
Starting an HR Department
New to job or company
If one has never been done
Procedures - Examples
Recruiting & Job posting Where, when, how, and who?
Job Descriptions Analysis Last update, developed
reflecting organizational structure, added positions
Compensation Structure
Benefit Updates
Reviews
Succession Planning
Employee Handbook
Employee Communication

What other procedures can you name that your HR

Department is responsible for?
Policies
Nepotism Open door
Vacation Customer Service
Leave FMLA Communication
Discounts Training
Computer Compensation
Succession
Best Practices
Set up of HR Department -Structure
Set up of other department -Structure
Filing systems Recordkeeping, Paper and
Electronic Files, Access,
Measuring our HR practices against other
successful companies
Determining how we add value to the company
and if we are being accountable
Compliance Federal, State, & Local
Laws
I-9s
W-4s
Union agreements
EEO
ADA
FMLA
Minimum Wage/Fair Wage
FLSA
Top offenders
I-9s

Medical Information in the File

FLSA and Exempt Abuse

Communication to Employees
Personnel Files
What to check
Employment/Orientation Records
1. Application or resume (keep in medical/confidential file if it has
protected information on it)
2. Offer letter
3. Confidentiality/ non-compete agreement
4. Handbook acknowledgement (latest revision
date_____________)
5. Drug testing policy acknowledgment
6. Drug testing consent form
7. Background check consent form
Personnel Files
What to check
Performance Records
Performance evaluation forms
Self evaluations
Relevant disciplinary warnings and performance
improvement plans

Training Records
_________________ Required training/certification
_________________ Required training/certification
General new-hire safety training checklist or
acknowledgment
________ safety training
Sexual harassment training acknowledgement
Personnel Files
What to remove?
Remove the following types of documents from employee personnel
files:
I-9s and any copies of identification
Investigation notes and reports
Any drug test or background check results
Payroll records containing SSNs or other protected information,
including W-4s and garnishments
Medical or confidential records, including anything that has
protected information such as a date of birth, medical information,
marital status, religious beliefs, etc. including:
o Benefit enrollment forms for current year, beneficiary forms,
benefit claims
o Leave of absence documentation (FMLA and non-FMLA),
disability or WC documentation
Summary of Audits
Determine what type of audit
Determine who will be involved
Set Dates to complete that are realistic
Add the audit to your review
Share the process and communicate the
findings
Keep a record of dates and outcomes
Questions and Answers
Thank you!
Robin Bullock
Slides
President@shrmjax.org