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The Hr Audit December2009 Anna R Smith (2)

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Anna Smith reviews the key components of an HR Audit.

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The Hr Audit December2009 Anna R Smith (2)

  1. 1. The Human Resources Audit December 2009 Anna R. Smith Copyright © 2009. Anna R. Smith. All Rights Reserved
  2. 2. Welcome and Introduction <ul><li>About Me </li></ul><ul><li>What is a Human Resources (HR) Audit </li></ul><ul><li>Why should you Do an HR Audit </li></ul><ul><li>Key areas you can audit with a checklist </li></ul><ul><li>How & when to consider a third party </li></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  3. 3. What is an HR Audit <ul><li>The HR Function has many responsibilities </li></ul><ul><li>Some are subjective: </li></ul><ul><ul><li>Your internal objective 3 rd party </li></ul></ul><ul><ul><li>Culture, morale, etc. </li></ul></ul><ul><li>Many HR responsibilities involve compliance – laws and regulations from feds/state/IRS etc. that apply to your workplace </li></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  4. 4. What is an HR Audit <ul><li>All Employers Fair Labor Standards Act (FLSA) Social Security Federal Insurance Contributions Act (FICA) Medicare Equal Pay Act (EPA) Immigration Reform and Control Act (IRCA) Federal Unemployment Tax Act (FUTA) </li></ul><ul><li>10+ Employees Occupational Safety & Health Administration Act (OSHA) </li></ul><ul><li>14+ Employees Title VII Civil Rights Act Americans with Disabilities Act (ADA) Pregnancy Discrimination Act </li></ul><ul><li>19+ Employees Age Discrimination in Employment Act (ADEA) Older Worker Benefit Protection Act (OWBPA) Consolidated Omnibus Budget Reconciliation Act (COBRA) </li></ul><ul><li>49+ Employees Family Medical Leave Act (FMLA) </li></ul><ul><li>99+ Employees Worker Adjustment and Retraining Notification Act (WARN) Employee Retirement Income Security Act (ERISA) </li></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  5. 5. What is an HR Audit <ul><li>The HR Audit determines if HR is doing what the department needs to be doing </li></ul><ul><ul><li>To look for potentially serious problems (land mines) – i.e., compliance </li></ul></ul><ul><ul><li>To address practices that need improvement </li></ul></ul><ul><ul><li>Implement the big ideas </li></ul></ul><ul><li>For You: a Top Ten List of things to audit yourself </li></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  6. 6. Why You need an HR Audit <ul><li>Non-Compliance is risky and potentially expensive </li></ul><ul><li>Proactive in Accounting/Financial Audits </li></ul><ul><li>Your HR function has as much potential liability for non-compliance </li></ul><ul><ul><li>Example: IRS </li></ul></ul><ul><li>Hope Method </li></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  7. 7. Self HR Audit Top 10 <ul><li>Email me at [email_address] for my full audit questionnaire </li></ul><ul><li>Because of time restraints, here is my top 10 for your own quick audit: </li></ul><ul><li>FLSA Compliance: </li></ul><ul><ul><li>Labor law posters up to date </li></ul></ul><ul><ul><li>Exempt vs. Non-Exempt test </li></ul></ul><ul><li>Employee Files: </li></ul><ul><ul><li>I-9 Separate </li></ul></ul><ul><ul><li>Medical File separate from Personnel File (HIPAA) </li></ul></ul><ul><ul><li>Job Application on file for every employee (resume also alright, not great) </li></ul></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  8. 8. Self HR Audit Top 10 <ul><li>Employee Handbook or Reference Manual: </li></ul><ul><ul><li>Employment at Will statement, New FMLA regs (January 2009,) ADA, Discrimination, Sexual Harassment Policy, Drug Testing Policy, COBRA </li></ul></ul><ul><ul><li>All of your organization’s rules/best practices </li></ul></ul><ul><li>Documentation: </li></ul><ul><ul><li>Employee Handbook – Policies </li></ul></ul><ul><ul><li>Signed Receipt of Handbook </li></ul></ul><ul><ul><li>Signed policies: Training (Sexual Harassment, Discrimination, Diversity – either training or acknowledgement of policy; IT Security Policy.) All the policies that are so important, it’s immediate termination if violated. </li></ul></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  9. 9. Self HR Audit Top 10 <ul><li>Job Descriptions: </li></ul><ul><ul><li>Up to date for EVERY position </li></ul></ul><ul><ul><li>Exempt vs. Non-Exempt test applied </li></ul></ul><ul><ul><li>Job’s skill and education requirements and a good summary of responsibilities and routine activities </li></ul></ul><ul><ul><li>Org Chart defining reporting structures </li></ul></ul><ul><li>Standard Interview Process: (EEOC) </li></ul><ul><ul><li>App’s on every candidate </li></ul></ul><ul><ul><li>All interviewers ask standard questions of all candidates </li></ul></ul><ul><ul><li>Do your interviewers know what are legal questions? </li></ul></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  10. 10. Self HR Audit Top 10 <ul><li>Evaluation of salaries/local market annually? </li></ul><ul><li>There is no such thing as comp time!!! </li></ul><ul><li>Contractor vs. Employee test </li></ul><ul><li>Do you document performance problems consistently? </li></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  11. 11. Self HR Audit Top 10 <ul><li>Special Email for HM-B clients: </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Email me for the: </li></ul><ul><ul><li>Laws that apply per # of employees </li></ul></ul><ul><ul><li>A Self Audit Checklist </li></ul></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  12. 12. 3 rd Party HR Audit? <ul><li>3 rd Party HR Audits are generally much more thorough because an outsider: </li></ul><ul><ul><li>Is objective </li></ul></ul><ul><ul><li>Has more time </li></ul></ul><ul><ul><li>Is a seasoned HR professional </li></ul></ul><ul><ul><li>Also asks big picture questions w/creative solutions </li></ul></ul><ul><li>Less expensive than litigation! </li></ul><ul><li>I do my audits via online survey, email me for the link </li></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved
  13. 13. 3 rd Party HR Audit? <ul><li>Contact Anna Smith: [email_address] </li></ul><ul><li>504.312.2941 </li></ul><ul><li>Or contact Tom Daly </li></ul><ul><li>Thank you for your time! </li></ul>Copyright © 2009. Anna R. Smith. All Rights Reserved

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