Resolving Important Issues in HR Audits

Companies use Human Resource audits to determine the compliance of HR policies, procedures, and guidelines. Issues in HR audit are identified before these become serious problems and help in finding the correct solutions. Moreover, audits can help HR find out how to improve inadequacies and reduce costs.

Benefits of Conducting Audits

Conducting HR audits can result in the following benefits:

• Lessens risks to the enterprise’s bottom line.
• Aligns activities with overall business goals.
• Ensures compliance with employment laws.
• Pinpoints specific areas where improvements will produce maximum positive impact.
• Detect gaps in procedures and practices.
• Help maintain or boost a competitive advantage.

In effect, the audit process helps HR managers in formulating an effective action plan where Human Resources practices may not be effective or inadequate. Here are common audit outcomes and possible solutions in addressing these issues in HR audit.

Ineffective Record Keeping

HR records are vital because these include legal compliance, monitoring of employee performance, and making educated decisions. The problem is some companies fail to maintain updated and accurate records which can cause legal and operational concerns.

Solution – Review HR records carefully. These include employee files, training and benefits reports, and performance reviews. All documentations should be correct, complete, and up-to-date.

Erratic Hiring Practices

These can result in discrimination claims, which in turn, leads to a diverse workforce. Frequent issues are imperfect job descriptions, subjective interview questions, and failure to perform detailed background checks.

Solution – Create uniform hiring practices based on unbiased criteria which will be consistently used for all job openings. Job descriptions need to exactly reflect the requirements of all positions and create interview questions based on job-related benchmarks. Candidates must go through the same assessment process while background checks are done objectively.

Lack of Performance Management

Performance management fosters employee productivity and development. The problem is many organizations do not provide sufficient support and feedback to their workers.

Solution – Come up with a seamless performance management system that includes well-defined targets and objectives, consistent feedback and mentoring, and opportunities for training and development. HR departments are tasked to ensure that employees are given a fair and impartial review.

Non-Adherence to Compliance Policies

Failure to adhere to employment laws usually lead to penalties, monetary fines, litigation, and damage to the organization’s credibility. Some of these issues are failure to provide employee benefits and pay overtime work.

Solution – Review company policies and practices to confirm compliance with pertinent laws and regulations.

PCS Prostaff – Certified Solutions Provider

If you’re looking for assistance in identifying issues in HR audit,don’t hesitate to contact PCS Prostaff.

We have been in the business of providing for different business organizations in California and adjacent states during the last 20 years. As a service provider, it ensures ease of payroll processing as well as systematic management of company payroll.

You can always visit our company website at https://pcsprostaff.com/ to see our competencies and check out the services that we offer. Or call us at these numbers 866-671-4344 during business hours to set an appointment with our ASO specialists.