The HR Audit

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The HR Audit : 

The HR Audit December 2009 Anna@hm-b.com

Welcome and Introduction : 

Welcome and Introduction About Me What is an HR Audit Why should we do one Key areas you can audit with a checklist How & when to consider a third party

What is an HR Audit : 

What is an HR Audit HR is in charge of: Remaining compliant (Federal/State laws, DoL, EEOC, OSHA, ADA, IRS, COBRA, HIIPA, record retention, etc.) Preventing litigation (Wrongful termination, discrimination, labor disputes, unemployment claims, etc.) Unbiased “3rd Party” in your Organization Attracting, retaining talent Payroll, benefits, training, performance Shaping, driving the culture Creating, maintaining a fair workplace (rules, best practices, etc.)

What is an HR Audit : 

What is an HR Audit An HR Audit determines if HR is doing what the department needs to be doing To look for potentially serious problems (land mines) To find areas needing improvement (are we doing what we say we are doing?) To document processes for reference To address compliance issues You will leave today with a quick list of things to audit yourself

Why do we need an HR Audit? : 

Why do we need an HR Audit? Non-Compliance is risky and potentially expensive Proactive in Accounting/Financial Audits Your HR function has as much potential to be just as exposed as your finances Example: IRS Hope Method

Quick Audit List : 

Quick Audit List Labor Law Posters Up to Date? (FLSA) FMLA: Employees Advised? Handbook! Keeping Resumes/Job Apps for defined period? EVERY applicant have an app? Affirmative Action Survey? Every employee have a job app on file? Interview Questions: consistent throughout process? Documented? Interviewers trained on what is legal to ask? I-9’s separate from employee files? Everyone have one? Employee medical files separate from personnel file (medical exam, health insurance, etc.)? (HIPAA)

Quick Audit List : 

Quick Audit List Reference Checks: on file and consistent? Formal job valuations on file and consistent? Do you have a mediation/progressive discipline process and documentation? Org chart? Job Descriptions? Exempt vs. Non-exempt test on each position? Evaluation of salaries/local market annually?

Quick Audit List : 

Quick Audit List Info given out on reference checks of former employees? OSHA injury log? OSHA workplace incident (form #300) filed within 8 hours? Contractor vs. Employee test Employee Handbook? Updated since January 2009? Have the at-will statement? Every employee signed receipt of handbook?

Quick Audit List : 

Quick Audit List COBRA compliant? ARRA compliant? EEOC-1 report if over 100 employees Routine examination of turnover rates? Training goals defined at least annually? Documented New Hire Orientation? Documented sexual harassment training? Documented discrimination training? Documented diversity training? Documented overtime? Do you use “comp time”?

Quick Audit List : 

Quick Audit List Special Email for HM-B clients: Anna@hm-b.com Email me for the Quick Audit List

3rd Party Audit? : 

3rd Party Audit? 3rd Party Audits are generally much more thorough because an outsider is: Objective Has more time Is a seasoned HR professional Also asks big picture questions Less expensive than litigation!

3rd Party Audit? : 

3rd Party Audit? Contact Anna Riester:Anna@hm-b.com 504.312.2941 Contact Tom Daly to get in touch