Most companies are familiar with the concept of an audit, especially when it comes to the financial aspects of the business. However, conducting an audit of your Human Resources policies and procedures could be just as valuable. An effective HR audit will not only help you assess the important factors for creating a financially healthy future, it can also provide insights into the qualitative aspects that impact your organization’s culture.
8 Reasons to Conduct an HR Audit
While an HR audit might not be mandatory, here are eight ways it can provide incredible value for your organization:
- An HR audit helps ensure compliance with important HR regulations. Staying up to speed on the latest compliance and regulations updates is critical. Whether you’re trying to avoid ACA-related penalties or provide appropriate overtime compensation, an HR audit can help you ensure you’re avoiding any potential fines or penalties.
- An HR audit helps eliminate the guesswork around benefits packages. Making sure your employee benefits package is legal and competitive is one of the most challenging aspects of Human Resources. An HR audit can help you answer all of your questions around which healthcare benefits package is right for your business and how you can simplify your annual renewal and enrollment process.
- An HR audit helps you stay up to date with the latest employment laws and trends. The business world is changing rapidly, including the laws that govern Human Resources departments. An HR audit can ensure that you’re not only adapting to theemployment law trends that are shaping today’s workplace but that you’re also up to date on the general business trends that could impact your organization.
- An HR audit helps ensure that your employees are being paid fairly. As an employer, you need to know what fair pay should be for your employees. You also need to know how to communicate with employees regarding fair pay and compensation. An HR audit can provide insights into both areas.
- Accurately classify your employees. As the popularity of freelance work and independent contractors has risen in recent years, so has the ambiguity on how to classify employees. An HR audit can help you determine how an employee should be classified or consider what type of hire you should make.
- An HR audit can analyze and reduce employee turnover. Employee turnover can be incredibly costly for your organization. Whether you’re looking to capture insights through an effective exit interview or looking for ways to boost morale and improve your company culture, an HR audit can provide insights to help you reduce employee turnover.
- An HR audit can improve organizational structure and update job descriptions. Whether you’re just starting your business or experiencing rapid growth, an HR audit can help you evaluate and improve the people, processes, and procedures you use to run your business An employee handbook is a foundational element for businesses just starting out. As your company grows and evolves, an HR audit can help you re-assess job descriptions in the same way you evaluate finances and budgets.
- An HR audit will help you adapt to the evolving expectations of Millennials. As Millennials continue to make up the larger percentage of today’s workforce, employers must be ready. An HR audit can help you ensure you are prepared and equipped for the ways in which Millennials will impact your organization.
Enhance the Processes & Procedures Impacting Your People
Whatever specific challenge you’re facing, an HR audit will help you enhance processes and procedures that are directly impacting your greatest asset—your people. Our team at LBMC Employment Partners understands the nuances of federal and state labor laws to help you understand and execute procedural tasks surrounding HR compliance. We can also help you address cultural issues that might be holding your business back.
Connect with our team to learn more about our HR audit process and other HR services.