eqHR Solutions Business Tips: Are you ready for an HR Audit?

Posted on December 15, 2015

An An HR audit is an objective look at your company’s HR policies, practices, procedures and strategies.

Like most business leaders, the word “audit” may fill you with feelings of dread. No one wants a regulatory “expert” coming in to their world, asking a bunch of technical questions and passing judgment on their business practices or worst, issuing a citation / fine.

Employment law, especially in states as complex as California, is ever evolving. Practices put in to place five years ago may now violate current state and/or federal regulations and recent court decisions.

Scheduling a periodic human resources audit is an effective tool to assess the current state of your company’s HR policies and procedures and to reduce potential future liability.

A properly executed audit can protect the company, establish best practices and identify opportunities for improvement. This objective evaluation can help you determine whether specific practice areas are adequate, legal and/or effective. The results can provide decision-makers with the information necessary to decide what areas need improvement.

What can you expect from a professional HR Audit?

The scope of HR audits conducted by eqHR Solutions focus on all areas of the HR function including:

• Are you properly managing leaves of absence, based on your company size?
• Are your employment files set up correctly?
• Are your exempt employees properly classified?
• Are your independent contractors properly classified?
• Based on the number of your full time employees, are you complying with those specific laws and regulations like, AB1825, AB2053 and the ACA?
• Do you comply with the California paid sick leave?
• Do you handle employee terminations appropriately?
• Do you have a performance review system in place that does not discriminate?
• Do you have a policy prohibiting sexual and bully harassment?
• Do you have a structured compensation plan in place?
• Do you have an updated employee handbook?
• Do you keep accurate hiring records, such as job postings, interview records, job applications and resumes?
• Does your company have a drug & alcohol free workplace policy?
• ü  Is your method of determining salary increases /bonuses discriminatory?

If you want to eliminate your worry about a regulatory audit, call or email eqHR Solutions today schedule a no cost consultation with a highly trained HR consultant.

This article was written by Lauren Sims, an eqHR Solutions Principal Consultant who may be contacted by calling eqHR Solutions.