Why should an organization audit its policies and benefits? The answer is simple – to lower their risk and remain competitive. In recent years with rapid change, the workplace is dynamic and it’s advised that an employer should consider a routine annual audit.
Why Conduct an HR Audit?
If you are not retaining excellent employees, discharging poor performers, reducing discrimination claims, reducing the cost of benefits, offering benefits to attract excellent employees, and efficiently responding to the litigation that does occur,
you are spending money needlessly. The upward spiral of these costs demands continuing evaluation. Any company desiring to remain competitive and reduce its costs should start with an audit.
Your HR Audit Will Reveal:
- The effectiveness of your Human Resources department
- If you have taken adequate steps with regard to discrimination
- Whether you communicate effectively
- If your benefits are too expensive
- If your benefits comply with a variety of laws & health care reform requirements
- Whether your benefits package is competitive
- If your pay scale is competitive
- Whether you are prepared for employment litigation
- If you retain the right records
- Whether you effectively use your attorney
- If your treatment of employees is consistent
- Whether you are proactive about problems or only reactive to them
The completed audit will be organized by assessment of current personnel administration, equal opportunity employment, discrimination awareness, compliance, development, termination, communication, benefits, discipline, salary, safety, and litigation.
From this assessment, areas for improvement are identified and a plan is created to correct the risk. By the completion of an audit an employer will have determined where they are in compliance, where they are doing well, and where they will have to address obstacles to their goals. HRtoGO will craft a plan to implement the identified changes.