HR Audits laws & HR compliance analysis

HR Audits: What you need to know

Conducting periodic HR audits is a straightforward way to ensure effective use of an organization’s human resources and to maintain or enhance HR’s reputation within the company. An HR audit is basically an investigation of the organization’s current practices, policies, and procedures. The price of conducting an HR audit is very small compared with the potential risk companies take from lawsuits, noncompliance penalties, and failed business strategies. Investigations by government agencies are conducted for a number of reasons, all having to do with enforcement of the laws and ensuring an employer’s compliance. Many are initiated by employee complaints, and HR audits will ensure that employees will not be filing complaints against the company.
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There are many different types of HR-related audits designed to accomplish a variety of objectives, such as:
• Ensuring compliance with federal, state, and local laws
• Developing organizational policies and practices
• Developing and implementing a fair and equitable compensation system
• Helping maintain or improve a competitive advantage in areas such as compensation, benefits, and recruiting
• Measuring HR departmental effectiveness
• Contributing to the organization’s strategic planning
• Establishing and supervising efficient and well-documented filing, record maintenance, and technology practices
• Identifying strengths and weaknesses in training, communications, and other employment practices
The type of audit and how frequently a company conducts audits generally depends on the company's business needs.
Audits should be conducted when there is a change in the law, after a merger or acquisition, or some other change in ...

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