Why Audit HR Compliance for your company?

Human Resources is often referred to as the most vulnerable and multifaceted function of a business. The ever-changing nature of human resources means HR leadership and management should align goals around HR compliance needs and people needs within the organization for the present and the future.

Flex HR’s Founder & CHRO, Jim Cichanski, explains “as an entrepreneur and CEO for 21 years I supported hundreds of CEOs that were friends as well as clients. Most CEOs told me they often never really understood the complexities of human resources and didn’t fully know if they were doing everything right.” This is the perfect example of why it’s critical to have a HR expert supporting your organization. “Many times, the employer becomes exposed during the exit of selling their company recognizing for the first time the HR mistakes that have been endured and therefore, amounting to a very substantial reduction in price of the sale due to the human capital risk exposure.” Ignoring HR-related issues can lead to big risks and overwhelming monetary costs to fix them.

Accepting the need for HR Help

When a business recognizes they need proper HR support they scramble to hire various levels of human resources professionals. Sometimes this can involve hiring an HR Manager, then finding out they are too inexperienced. Next, they hire a VP HR individual but find they are doing clerk work most of the time. Lastly, they hire a director level HR person, and that employee just requests to hire employees under them to do the work. It is a vicious cycle, and at Flex HR we get the call about all of these scenarios.

A Human Resources subject matter professional is essential to keep a business compliant with all the laws of each state that employees work in and provide guidance on how to reduce risks. We recommend starting by spot checking your HR operations to guarantee your basics are covered in order to minimize your risk.

Thus, the reason HR audits are vital to ensure:

Adequate practices and procedures are legal and effective
Employee handbook has been updated within past 2 years
Legal and regulatory liabilities are not at risk
Employee files are completed, up to date and accurate
Federal and state employment law and required rules are being followed
Onboarding and offboarding guidelines and processes are appropriate
OHSA regulations and guidelines are being respected

Do I need an HR Audit?

Initiating the course to correcting your ineffective HR functions is sometimes the hardest first step in the process. A deep dive into your company’s policies, practices and procedures will reveal what major issues are deterring your company from achieving your overall business goals. This audit will also outline what areas your business is performing well. The audit is quick and painless, so jump right in.

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