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. Hiring experts for HR audit services will not only help you assess the important factors for creating a financially healthy future, but it can also provide insights into the qualitative aspects that impact your organization’s culture.
Nine Reasons to Conduct an HR Audit
While contracting HR audit services isn’t mandatory, here are nine 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, HR audit services 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. Employing HR audit services can ensure that you’re not only adapting to the employment 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 and how to communicate about fair pay and compensation. An HR audit can provide insights into both areas and help address inequities or inconsistencies. Starting in 2019, companies with more than 100 employees must provide the U.S. government with data about worker compensation, broken down by sex, race, and ethnicity. HR audit services can help you be prepared for these reports, while also helping the company avoid any unwanted surprises.
- An HR audit will 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 what type of hire you should make.
- An HR audit can analyze and reduce employee turnover. The economy is booming, and the competition among employers to acquire and retain top talent has never been fiercer. Using HR audit services can help identify reasons why employees may be leaving and improve retention. Whether you’re looking to capture insights through an effective exit interview or 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, using HR audit services 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.
- An HR audit can help address and prevent harassment. With the dialogue surrounding the #MeToo movement, workplace harassment has become a hot button issue at companies across the country. Using HR audit services helps companies identify potential harassment issues and ways to foster a safe working environment.
Enhance the Processes & Procedures Impacting Your People
Whatever specific challenges you’re facing, our HR audit services can 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.