A Human Resource Audit provides a detailed assessment of HR management activities and practices. This audit assessment identifies gaps between current operating procedures and recommended practices. It also outlines recommendations and practical solutions to close the gap between current practices and proven HR best practices.

After several HR audits for numerous organizations over many years, there are five recommendations that pop up most often in the HR audit report. By addressing these top five areas for improvement, companies can 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 both full-time and part-time employees.

When reviewing I-9 forms, common errors include:

  • Employee did not sign the top section
  • Proper forms of documentation are not provided
  • Information on documentation appears in wrong areas on the form
  • Hire date is missing
  • Company information is incomplete or missing
  • Company representative signature is missing

Immigration and Customs Enforcement (ICE) requires the correction of I-9 forms to be done in a very specific way. Even correcting forms may not relieve a company from ICE fines and penalties.

Recommendation #2: Develop or Revise employee handbook.

All companies need an employee handbook whether they have 10 employees or thousands of employees. This 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 varies 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 need to be reviewed and updated to ensure compliance with changes in laws and regulations. They also need to reflect changes in company benefits and policies. Every employee receives a copy of the employee handbook and signs an acknowledgment form stating they have received and read the handbook.

Recommendation #3: Develop or update job descriptions.

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

Review your job descriptions on an annual basis to prevent them from being outdated. Make sure you reflect the current duties performed by each employee. This also helps employees understand their job duties, and can be the basis for their performance evaluations.

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

A structured interviewing and hiring process ensures the company selects the most qualified applicants for all open positions. Develop guidelines and procedures for the process and follow them for all hiring decisions.

Provide managers who are interviewing and hiring employees proper interviewing skills training. Otherwise, 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. It helps determine if the candidate’s skills and experience are relevant to the skills and experience required for the position. Training in behavioral interviewing helps the hiring manager better identify and select the 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.

While companies often have an evaluation form, evaluations may not be a company priority and not completed on a consistent basis. An effective evaluation system also requires managers be 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 540-420-1004 or click here for a free consultation.

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