Employment laws are ever changing. Workplace lawsuits are on the rise. Fines for non-compliance can add up quickly and deplete your hard earned profits. The average lawsuit settlement is $165,000 before you pay lawyer fees; if you suffer through a jury trial when faced with litigation, it could cost you $1 Million or more.
Often times Human Resources' staff is so busy trying to keep up with day-to-day operations that many HR practices and procedures get neglected, which increases company risk levels. Allowing high risk practices to continue can quickly lead to expensive litigation and/or compliance violations. However, human resources practices and policies can result in cost savings for companies by ensuring HR compliance, consistency, and appropriate processes. Certain HR functions can save a business a considerable amount of money. In other words, HR can add to your bottom line through cost-saving measures.
| 1 | Bad policies, not having policies, not having the right policies in place, and/or not following your policies |
| 2 | Inappropriate hiring processes |
| 3 | High turnover |
| 4 | Low morale |
| 5 | Non-compliance of employment laws |
| 6 | Non-compliant job descriptions |
| 7 | Misclassification of workers |
| 8 | Wage and hour violations |
| 9 | Lack of training |
| 10 | Inadequate compensation plans/programs |
Conducting a Human Resources (HR) audit is a smart way to make sure your organization is legally compliant, as well as, uncover illegal processes. The HR audit is the process of examining intensely and objectively the organization's HR policies, procedures, documentation, systems, practices and strategies to protect the organization from litigation, establish best practices, and identify opportunities for improvement. An objective review of the employer's "current state" can help evaluate whether specific practice areas are adequate, legal, and effective.
In a nutshell, the HR Audit gives organizations the opportunity to assess what the organization is doing right, as well as how things might be done differently, more efficiently, or at a reduced cost. It also helps the company identify outsourcing opportunities and cost saving strategies.
Our expert HR team can conduct a thorough audit and review all aspects of your human resource processes, including:
- Hiring and Orientation
- Benefits
- Compensation
- Policies and procedures
- Performance evaluation process
- Grievances and disciplines
- Termination process and exit interviews
- Job descriptions
- Form review
- Personnel file review
- I-9's review
It only takes one disgruntled employee to file a complaint of unfair labor practices to incite a full blown investigation by the IRS, DOL, EEOC, ect. These investigations can interrupt you business as well as be time-consuming and very expensive. Are you prepared? By conducting an HR Audit, you can avoid litigation and non-compliance fines. An HR Audit can also provide an objective look at the company's human resources policies, practices, procedures, programs, and strategies to help not only protect the company from litigation and fines; it can establish best practices, identify opportunities for improvement, and evaluate outsourcing options. HR Audits can ensure effective utilization of HR resources and improve customer service, which in turn can add to your bottom line.
