ERC’s HR Compliance Audit helps ensure that your organization is following all necessary employment rules and regulations. In today’s rapidly changing regulatory environment, it’s critical for organizations to review their HR practices on a regular basis, though most organizations don’t have the internal expertise or resources to do so. ERC experts will collaborate with your leadership team to identify areas of noncompliance, recommendations, and suggested best practices.
With ERC’s HR compliance audit, you can rest assured that your HR practices and policies are up-to-date and aligned with the latest standards.
What’s Included in an HR Compliance Audit?
Consistently maintaining compliant documentation for all phases of the employee life cycle is crucial to mitigating liability risk. ERC will ensure all personnel recordkeeping is consistent and aligned with current Department of Labor regulations and overall best practices. This includes:
- Federal/State-Required Posting Review
- Employee file audit of new hire paperwork, wage and hour documentation, performance management forms, leave/medical-related requests, etc.
Selection and Hiring Evaluation
When onboarding new employees, it’s important to comply with legal and regulatory requirements that ensure fair and consistent hiring practices. This includes:
- Job Descriptions — A review of job descriptions can identify any discriminatory language, but also ensure that the description clearly reflects the essential functions and responsibilities of the position.
- Recruiting Process — When recruiting, it’s important to be consistent to avoid any discriminatory recruiting practices, which can extend from job postings to the candidate selection process.
- Interview Process — Having a standardized interview process ensures that hiring managers evaluate all candidates equally; our consultants can also ensure that interview questions are legal according to federal and state anti-discrimination laws.
- Recordkeeping — In case your organization is accused of discriminatory behavior, it’s important to keep records of all applicants, interviews, and evaluations.
- Hiring Process and Onboarding — Once you’ve found the right candidate for a job, it’s important that you have the right procedures in place to bring them on board, including paperwork, communication of company policies, and any necessary training.
Our consultants will review whether your employee benefits offerings are competitive, meet the need of your workforce, and comply with legal and regulatory requirements. An audit of employee total rewards can help your organization attract and retain top talent and improve your reputation as an employer of choice.
A comprehensive HR audit often starts with a review of your organization’s policies and procedures, including:
- Employee Policy Review — A review of your current employment policies will not only evaluate legal compliance but also uncover any updates or revisions that need to be made.
- Performance Management Process — We’ll evaluate your current performance management policies, including your performance evaluation process, how feedback is provided, and how you document performance.
- Medical Leave Administration — Our HR Consultants will review your current processes for medical and accommodation requests to ensure consistent and compliant practices are established.
Wage and Hour Compliance
A review of company pay practices helps ensure that your organization’s compensation policy is aligned with your overall business strategy. This review also helps analyze whether employees are receiving fair compensation and benefits.
- Pay Practices — ERC will review your current timekeeping and payroll processes to ensure compliance with wage and hour laws.
- Pay Equity — Our consultants will conduct a generalized review of current pay data in order to flag any significant compliance risks related to pay inequity.
- Employee Status — We’ll help you stay compliant if you employ different types of employees, including exempt and non-exempt employees, and independent contractors.
One of the most important areas to consider from a compliance perspective is workplace safety. It’s important for your organization to create a safe working environment for all employees, but that extends to remaining compliant with standards set by regulatory agencies like OSHA. ERC’s HR Audit can help evaluate whether you have the right safety policies and procedures in place.
An HR Compliance Audit is ideal for organizations looking for a comprehensive, compliance-based analysis of current HR processes, policies, and practices.
ERC’s HR Compliance Audit includes a review of the following:
- employee record-keeping
- federal/state posting review
- policy administration
- wage and hour compliance
- selection and hiring evaluation
- performance management
- leave administration
- safety programming
Organizations will receive a comprehensive report including identification of areas of noncompliance, recommendations, and suggested best practices.
In most cases, this is completed within a 30-day time frame and includes one day on-site at your organization.
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Frequently Asked Questions
An HR Audit is a review of an organization’s HR policies, procedures, and practices to evaluate their effectiveness, ensure legal and regulatory compliance, and identify areas for improvement. ERC’s HR consultants will typically review documentation, existing policies and procedures to gather information and insights. We’ll also talk with your HR and leadership teams to understand the short and long-term business goals and objectives, as well as HR practices that must support them.
Once complete, our team will deliver an audit report with the identification of areas of non-compliance, prioritized recommendations, and best practices insights.
While an HR Audit should be aligned with your organization’s goals and, equally, any challenges you’re facing, ERC’s HR Audit generally includes a review of the following:
- Employee Recordkeeping
- Federal/State Postings Review
- Policy Administration
- Wage & Hour Compliance
- Selection and Hiring Evaluation
- Performance Management Processes
- Leave Administration
- Safety Programming
Regular HR Audits help ensure compliance with legal and regulatory standards. They also support policies and practices tied to employee engagement and retention. The frequency of an HR Audit can vary depending on the size and industry of the organization, however conducting one on an annual basis can help your organization remain compliant, reduce risk, and ensure your HR policies and practices are keeping pace with the latest developments.