Conducting regular, internal human resources audits can yield several advantages for businesses, no matter their size. Often, individuals consider audits to be vehicles that identify what’s wrong. Although audits can point out internal deficiencies, they can also recognize what’s right.
Human resources audits can not only identify legal compliance issues; they can also increase engagement and performance with employees. At the same time, regular audits allow the business to strengthen internal processes and procedures. These audits help businesses plan for future growth, by identifying the organization’s current and future needs.
Here are four reasons to conduct an internal HR audit.
Manages State and Federal Compliance
With employment and labor laws and regulations changing so frequently, it’s beneficial for companies to conduct an internal audit, identifying both legal compliance and non-compliance. For example, businesses can review their current recruiting, hiring and termination processes for fairness. Additionally, employers can determine compliance with workplace safety, overtime compensation, employee classification, disability, and leave policies.
Since legal issues and liability can be costly, conducting an internal audit is a proactive way to mitigate risk. When examining legal compliance, employers must examine both the State of Texas and federal laws impacting human resources.
It is rare that employers comply with the documentation side of employment laws prior to their first HR Audit. For example, most employers do not have two separate folders containing the appropriate paperwork for each employer. Even more challenging, it is unlikely that each employee completed an appropriate sweet of onboarding documents and had all their pre-employment verifications completed and logged consistently.
The Treaty Oak ELG offers a customized approach to conducting internal human resources audits. Specifically, Susan Word, HR Specialist, engages with the company to understand the unique needs of the small business. After Susan has done much of the HR specialist work, she consults with Attorney Natalie Lynch to review the work for legal appropriateness. In this way, smaller companies receive the protection they need at a more palatable price.
