1. http://www.ghrogroup.com
The HR Audit: Can Your Company Afford to go Without?
In this tumultuous economic climate, where many companies are resorting to
layoffs and many other jobs lie teetering on the brink, employment-related
lawsuits are on the rise. Hundreds of employment lawsuits are filed each
week—the vast majority against small businesses. Approximately two-thirds of
those lawsuits are decided in favor of the employee. Recent data shows the
average compensatory award in federal court employment cases is nearly
$500,000, not including punitive damages or attorney fees. Even settling a
lawsuit can cost over $300,000. Can your company afford such a pricey payout?
If the answer is “no,” consider a Human Resources audit: an objective,
comprehensive review of your company’s HR compliance and practices, which
could prevent costly employment lawsuits. The two-part audit will bring out
the best in your company by streamlining and modernizing its HR services. The
compliance portion of the audit examines legal facets, including outdated or
conflicting policies and inconsistencies between policy and practice. The
practices portion of the audit focuses on HR fundamentals, including
performance evaluations, employee handbooks, recruitment, discipline and
termination, absence requests, and record keeping. Your company will become
aware of any deficiencies in its HR network and will receive direction on a level
tailored to your company’s needs.
At the end of the audit, recommendations will help your company to develop
consistent policies and to become compliant with current laws and regulations,
including ADA and FMLA. These recommendations may lead to a number of
additional improvements, such as fewer employment lawsuits, better handling
of employee grievances, and fewer errors and complaints. Fair and equal
treatment of employees encourages enhanced recruiting, increased employee
morale, and improved retention.
The benefits of an HR audit are not all legal; the audit can promote many other
positive changes withinthe company. The comprehensive nature of an audit
can help uncover the HR programs most important to the company’s
objectives, so those programs can be better utilized. The close examination of
practices may also encourage fresh ideas and approaches to HR. An audit will
also provide a benchmark of HR services to ensure consistency and to set future
goals. Global Human Resources Outsourcing offers full-service HR audits to
help keep your company at its best. For more information, contact GHRO at
888-308-0338.