Checklist For HR Audit

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Checklist for HR Audit

by Marcia Moore, MSSW, Demand Media

Use of HR audit checklists can improve overall organizational performance.

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Companies conduct HR audits for several reasons. Two main focuses of an audit are legal compliance and best
practices. HR departments may take this time to recognize weaknesses and strengths in their processes and make
necessary changes. One way to ensure that all important areas are included is to develop an HR checklist. Use of the
checklist will maintain focus and serve as a record of the results.

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Employee Records
Audit checklists should include questions about the use and storage of employee records. There are legal
requirements associated with the hiring of employees and maintenance of records. For example, you must keep
information regarding health-related issues separate from other files to protect the employee's privacy. You must file
necessary immigration information for each new hire and maintain copies of certain documents. One checklist
question may be where and with whom these files are being held.

Policies and Procedures


You should have clearly defined policies and procedures in writing and you should present them to all employees. In
order to prevent lawsuits regarding such actions as wrongful termination or discrimination, you should conduct a
new employee orientation. Explain company policy and the discipline process to all employees and have them sign a
waiver of acknowledgment. HR audit checklists should contain information about when the orientation is conducted
and what is included.

Related Reading: Description of an HR Audit


Company Benefits
Employee benefits are a major part of HR responsibilities, and it's important to keep records of the medical and
dental plans you offer while watching associated costs. Audit lists with questions about programs offered with the
requirements and limits for coverage can provide a comprehensive view of what is working for the company and the
employee. This information is helpful when making decisions about what programs offer the best return on benefit
investment.

Compensation
How a company pays employees is critical to its performance and success. HR is responsible for recruiting and
hiring the most skilled employees the company can afford. You must maintain information about salaries, bonuses
and other types of payment. For an HR audit, use checklists containing questions about determining factors for
salaries, when employees are eligible for increases and who is responsible for managing the process to help evaluate
areas for improvement.

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