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Human Resource Audit Is All About Investigating Your HR Policies and Employment Laws

29th April 2010
By Andrew Decosta in Employment Law
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Every organization regardless to its size and number of employees follows some particular HR policies according to which an annual human resource audit is a mandatory requirement to measure the current stand of the organization and inquire about the required improvements. This audit encompasses a methodical evaluation of different aspects of human resource to find out whether the company's policies are adhered to government rules so that the organization seldom faces an expensive lawsuit or fines.
A human resource audit may be carried out by the organization's HR staff, an external consultant or by an employment law attorney. Whoever is in charge of the audit must have ample knowledge about corporate HR policies and should maintain a checklist to tally the company's existing policies with its current requirements. An audit conducted by an external consultant adds an extra piping to the cake apart from bringing the details of all pertinent laws to the desk. HR policies, HR audits and employment law advices provided by an independent source are always considered to be better than self-audit. However, self audit is at least better than having no audits at all.

Generally audits involves a series of questions framed based on some particular functional areas. An audit may not be a single day ball game. It touches the hr policies, may need to investigate about some documents, interviewing managers and HR staffs depending upon the type and size of the organization.
HR audits generally include some targeted areas like staff recruitments, administration, employee relationships, compensation and employee classifications.
An audit of staffing can help in identifying the turnover probabilities, deficit in achieving the goals and predict the possibilities of future job openings.
An audit can also review compensations, employee classifications and time records. It also examines the policies to prevent the organization from facing legal sues or fines for not adhering to the federal, state or local laws.
HR auditing in the arena of administration and employee relationship comprises verifying HR duties, administration procedures, attendance record handling, communication procedures and performance measurements.

Regular audits of HR policies and functions help tone down the risk factors. If you have major compliance concern for your organization you may decide upon an audit carried out either by an employment attorney or by an independent entity that have a reputation for providing extensive services that includes HR audits, framing suitable HR policies and offering valuable employment law advices. By leaving the auditing job to an external source you can find out the correct problems and get yourself prepared to face the government investigator if required.
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