Human Resources Consulting - Columbia SC

The Human Resources Audit

The purpose of a Human Resources Audit is to provide a professional and objective perspective on a company’s Human Resources efforts, identification of areas that can be improved and recommendations for changes, including those that involve compliance with various state and federal laws.

A Human Resources audit assesses the company’s level of compliance with federal and state laws and evaluates the effectiveness of the overall Human Resources function. In an effort to address these complex issues both small and large companies are increasingly auditing their Human Resources functions in order to stay compliant.

The First Step in the Human Resources audit procedure is to meet those employees who may be currently performing the company’s Human Resources functions.

The Second Step is to review, evaluate and make recommendations on the following:

  1. Recruitment and selection - applications, legal and illegal interview questions, reference check releases, Fair Credit Reporting Act compliance, job descriptions, selection tools, job offers
  2. Compensation - methods, consistency, market analysis, alignment of performance management with salary management
  3. Employee Relations -  performance management, disciplinary procedures, counseling, employee recognition, termination procedures, exit interviews
  4. Mandated benefits - social security, unemployment insurance, worker’s compensation, COBRA
  5. Optional group benefits - medical, dental, life and disability insurances, time off benefits, flexible benefits, retirement plans, employee assistance programs, tuition assistance, other perks
  6. Payroll - compliance with the Fair Labor Standards Act, designation of “exempt vs. non exempt “ employees, independent contractors
  7. Recordkeeping - personnel files, confidential records, payroll records, I-9 forms, W-4 forms, disciplinary forms, annual evaluations, pre-employment health screenings, medical/worker’s compensation records
  8. Training and development - new employee orientation, staff development, leadership, sexual/workplace harassment, Family and Medical Leave, effective interviewing
  9. Employee communications - company handbook, recognition programs, announcements, staff meetings, mandated posters
  10. Internal policy development - organization wide policies on equal employment opportunity, smoking, sexual/workplace harassment, time off, holidays, sick time, absenteeism and tardiness, personal appearance, solicitation, drug and alcohol, leave of absence

Properly conducted audits can identify practices that must be changed, highlight areas with room for improvement and focus on positive policies that should be continued. It has been proven that the seven areas where employers are most likely to make errors are:

  1. Misclassification of exempt and non exempt jobs

  2. Inadequate Personnel Files

  3. Prohibited Absentee Policies

  4. Inaccurate Time Records

  5. Insufficient Documentation

  6. FMLA Eligibility

  7. Independent Contractor status

PHHR, through our Human Resources Audit and other available services, will give your company appropriate and actionable alternatives and solutions to undesirable situations that keep you awake at night! Learn more about all of our Services...

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Paul Hilton, Human Resources Consulting, LLC
Columbia, South Carolina
Office: (803) 481-9533 Cell: (803) 305-8962  

Paul Hilton, Human Resources Consulting, LLC