Overview

Scenario 1

As a business owner or executive, you're working hard to build a successful organization. You have had no serious problems in the employment area until today, when a notice arrived from the Labour Department saying that you're under scrutiny. What do you plan to do?

What prompted this notice? A disgruntled employee who claimed you cheated him or her out of wages? You may never know.

What should you expect if your company must submit to a Labour Department investigation? The CFO of a local business recently spent more than 60 hours preparing for and meeting with the Labour department inspector. He had to provide time records from the past three years, the employee handbook, organizational charts, employee names, PAN/IRS numbers, hire dates and job descriptions. As part of the process, the investigator also conducted private interviews with several employees. In the end, the Labour commissioner ordered the company to make significant payment for back wages. The firm also incurred its own legal fees. 

Scenario 2

You have managed building a successful business over the years. Now you have expanded operations and hired a large team of experienced professionals. You also formed an HR department to cater to your business and talent needs. However you don’t really know if your HR department is really performing.

Would you want to benchmark your HR department and set world standards in your organisation? Would you want to consider the efficiencies that can make your HR department a joy to work with?

How can an organization avoid the time, expense and embarrassment of a Labour department investigation? The best solution: Conduct an audit of your own HR Department and make sure your pay practices and other policies comply with ever changing regulations.

What is an HR audit?
Used optimally, a human resource audit helps senior management to:

• Ensure compliance with wage-and-hour laws and the myriad of other employment and benefits-related statutes.
• Examine the effectiveness and costs of HR policies and practices and their role in the organization's strategic planning.
• Benchmark actual against desired performance and develop an action plan for addressing shortfalls.
• Save money by identifying and correcting inefficiencies and compliance problems.

Progressive organizations will embrace a well-executed HR audit as an important tool for creating, updating and executing HR strategies and best practices that will provide long-term support to the organization's big picture.