HR Audits: Keeping HR Healthy

Kristen Borrego, Outsourced Consulting Services 

TodaKristen Borrego 0023y’s HR environment is more complex than ever before. New laws and regulations can make it seem impossible to keep up. We receive calls from members all the time asking for assistance in fixing items that they have become aware are important. Still, how do you know what you don’t know? In most cases, the best way to uncover lurking compliance issues is a Human Resource audit of your current practices.

What is a Human Resource Audit?

A Human Resource audit is a review of your current HR activities to determine what, if anything, needs done to improve the function. It involves systematically reviewing all aspects of Human Resources, ensuring that government regulations and company policies are adhered to and key practices are in place. It also includes highlighting current strengths, reviewing processes where HR could operate more efficiently and effectively, and identifying problem areas.

What areas can a Human Resource audit cover?

Organization Demographics

  • Employee size, locations, and employee groups
  • Government contracts, industry, and private/public/ nonprofit sector
  • HR department structure and positions

Pre-employment Screening & Selection

  • Employment application
  • Candidate background check procedures
  • Interview and screening process meet EEO standards, definition of an applicant, and candidate testing tools and practices
  • Candidate reference check procedures
  • E-Verify requirements

Regulatory Reporting

  • New-employee reporting
  • EEO-1 filed
  • EEOP/Affirmative Action program
  • Form 5500
  • OSHA regulations followed and log maintained

Wage & Hour

  • Overtime pay practices and timesheet procedures
  • Equal Pay Act compliance
  • Federal, state, and local payroll withholding implemented
  • Child labor considerations – employment of minors

Benefits Administration

  • COBRA and FMLA administration process and procedures
  • Benefit plan documents for healthcare and retirement plans

HR Administration

  • Employment posters
  • Americans with Disabilities Act – reasonable accommodation practices and accessibility
  • Employee Handbook

MSEC has resources to assist you in conducting your own HR audit or we can do it for you! If you are ready to know what you don’t know contact us at hrmanager@msec.org.