A Human Resource Audit provides a detailed assessment of HR management activities and practices. This audit assessment will identify the gap between current operating procedures and recommended practices. Audit reports will outline recommendations and practical solutions to close the gap between current practices and proven HR best practices.

We have conducted several HR audits for numerous organizations over many years. In my experience, there are five recommendations that are often listed in the HR audit report. These top five areas for improvement should be addressed by companies to limit liability and fines and improve employee/employer relationships.

Recommendation #1: Complete or correct 1-9 forms for all employees.

An employer is required to have a completed I-9 form on file for each employee on the payroll. This includes full-time and part-time employees of the company.

When reviewing I-9 forms, some common errors include:

  • The employee not signing the top section
  • Proper forms of documentation not provided
  • Information on documentation copied in incorrect areas on the form
  • Hire date missing
  • Company information incomplete or missing
  • Company representative signature missing

When errors are found on the I-9 form, Immigration and Customs Enforcement (ICE) requires the correction of I-9 forms to be done in a very specific way. Corrected forms do not necessarily relieve a company from ICE fines and penalties.

Recommendation #2: Develop or Revise employee handbook.

All companies should have an employee handbook whether they have 10 employees or thousands of employees. The employee handbook provides information on the company’s policies, procedures, and benefits. It outlines management and human resource best practices and provides the employee with an understanding of company expectations.

The contents of the employee handbook may vary depending on the number of employees at the company. For example, a company with less than 50 employees is not required to comply with the Family and Medical Leave Act (FMLA) and is not required to have an FMLA policy in the handbook.

Handbooks should be reviewed and updated to ensure compliance with changes in laws and regulations and to reflect changes in company benefits and policies. Every employee should receive a copy of the employee handbook and sign an acknowledgment form stating they have received and read the handbook.

Recommendation #3: Develop or update job descriptions.

There should be a job description for each position within a company. The employee and the employee’s manager should have a copy of their job description, and a signed job description should be filed in the employee’s personnel file. The job description is an important part of various HR processes including hiring, orientation, and employee performance management.

Job descriptions often become outdated because they are not reviewed on an annual basis. Each job description should reflect the duties performed by the employee at the present time. A current job description helps employees understand their job duties, and it should be the basis for their performance evaluations.

Recommendation #4: Develop an interviewing/hiring process and provide training for managers.

A structured interviewing/hiring process ensures the company selects the most qualified applicants for all open positions. It’s important to develop guidelines and procedures for the process and follow them for all hiring decisions.

Often managers who are interviewing and hiring employees have not received proper interviewing skills training. They may ask discriminatory questions or questions that are not relevant to the position.

Behavioral interviewing techniques are very helpful to understand an applicant’s past skills and experience and determine if those skills and experience are relevant to the skills and experience required for the position. Training in behavioral interviewing is beneficial in selecting an applicant that is the most skilled and the best fit for the position and the company.

Recommendation #5: Develop or revise the performance evaluation process.

An excellent employee performance evaluation process is a win-win for the company and the employee. All employees should receive feedback on their performance whether it’s positive feedback or constructive feedback.

As mentioned in Recommendation #3, job descriptions are an important part of the performance evaluation process. If the employee and the manager do not have a current job description for the employee’s position, it is difficult for the employee to understand their job expectations and for the manager to effectively evaluate job performance.

Often companies have an evaluation form, but typically evaluations are not a company priority and are not completed on a consistent basis. It can also be challenging to have an effective evaluation system if managers have not been trained on the requirements of the evaluation process. Conducting employee evaluations on a consistent basis improves employee performance and the employee/manager relationship.

If you are looking for a partner to improve human resource management policies and practices for your company, please contact us at 540-685-1005 or click here for a free consultation.

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