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A human resource audit is a review of an employer’s
systems and processes to determine if they meet current and
projected HR needs and whether they provide sufficient protection
from legal liability. The HR audit includes a review of the
employer’s documents, policies, procedures and daily
practices.
An individualized HR audit will help companies identify potential problem areas,
improve performance, and ensure that the organization is in compliance with
state and federal employment regulations. A properly conducted HR audit
will answer such questions as:
• What are the current formal and informal employment policies? Are they clearly written?
• Are the policies applied consistently?
• Is the employer in compliance with employment documentation required by law?
Employers are recognizing the liabilities and obligations resulting from the
enormous growth and expansion of employment litigation. Failure to recognize
potential causes of action for wrongful discharge, employment discrimination
or failure to comply with the increasing number of federal and state employment
regulations can produce disastrous results.
A comprehensive HR audit is designed to aid employers in evaluating the strengths
and weaknesses of their personnel policies and procedures and help identify
and eliminate problem areas. The audit also helps employers make necessary
changes in current practices and procedures to comply with applicable employment
laws.
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