In this video, human resources professional consultant and trainer Catherine Mattice covers the importance of conducting an HR audit. She explains the components of an HR audit plan, including scope, logistics and timeline. The tutorial also demonstrates the importance of transparently communicating the audit with a company’s employees.
- Winston Churchill once said, "Let our advance worrying become "advance thinking and planning." In other words, you could spend your time worrying about whether employees are correctly classified as exempt or non-exempt or if the time clock calculates vacation correctly or you could take the time to perform an audit on Human Resources to ensure that everything is in order. An audit is a great way to ensure the things you are responsible for are compliant and up-to-date. In conducting your audit, the first thing you'll want to do is create a checklist of all things HR.
I've made it easy on you and put one in the Exercise Files for this course. As you review the checklist, I'm certain some things will stand out to you as desperately needing an audit while others may not. For that reason, the next thing you should do is create an audit plan. The audit plan will help you stay on track. As you can see in the template audit plan I put in the Exercise Files, the first part is the Scope. Depending on what you're auditing, you may say, in that no audit of Human Resources has ever been conducted, this audit will cover all things HR, or you might decide the Scope is limited to something more specific, such as this audit aims to determine compliance and uniformity in compensation, benefits, and classification.
The next section of your audit plan will be about Logistics, in other words, spend some time brainstorming how and where you will get the information you need for your audit. For example, if ensuring employees are correctly classified as exempt or not exempt is a goal, then you'll probably need to spend some time with employees interviewing them about their jobs, so let them know in advance you will need some of their time. This leads me to the next item in your audit plan, which is a Timeline. As your reviewing the checklist and figuring out what you will audit and how, also consider when you will audit each section.
That way if you need employee time, for example, you can give them plenty of advance warning. A Timeline also ensures you stay on task and complete the audit within a reasonable time frame. A quick note about communication, if you do find it will be necessary to spend time with employees or poke around the business in places you don't normally go, you could make people feel uncomfortable about why you're doing that. Before you start your audit, communicate about it with transparency. You could send an email out letting people know you need to spend some time understanding what's happening in HR.
Employees just need some assurance you aren't auditing the business in order to recommend people for layoffs, for example. I know the audit plan can sound a little daunting, and you may be thinking I've got this checklist so I'll just get started. Yes, you could do that, but the audit plan can make the process more streamlined and ensure you cover everything. Doing the audit with just the checklist in hand will get results, but you may miss something, so take a few hours to write out your plan, get your checklist in order, and then go and get started.
HR consultant Catherine Mattice outlines some of the considerations of the human resources professional, such as balancing the needs of employees with the interests of the organization. She reveals how to conduct an HR audit to identify HR practices that need improvement. She then outlines core HR responsibilities: staffing, training, documentation, compensation and benefits, performance reviews, job descriptions, compliance with state and federal regulations, and more.
- Building trust with employees
- Conducting an HR audit
- Classifying employees
- Setting up compensation and benefits
- Creating and enforcing company policies
- Writing job descriptions
- Recruiting, interviewing, and hiring new employees
- Managing employee performance
- Training employees
- Disciplining employees