HR Audits & Due Diligence

HR Audits & Due Diligence

by Steven sieja
Periodically, a human resources audit & due diligence, or comprehensive method to analyze current HR documented policies and procedures is needed. It’s important to distinguish what areas need to be improved. We enhance and align your company to stay in compliance with constantly changing government rules and regulations.

During a HR audit we review all company reports, employee files, records, departmental practices and processes to meet a variety of objectives. Such objectives include identifying strengths and weaknesses in current best practices, ensuring efficient and consistent documentation, safeguarding technology guidelines, and even improving competitive advantages. We find any holes in these key practices, and fill gaps to minimize any violations.

Customized Due Diligence Process

When undergoing a Merger & Acquisition, a human resources due diligence review is necessary. Likewise, Flex HR identifies obstacles that compromise your organization’s human capital value and develops a synchronized HR strategy to create value and reduce risk. Specifically, this includes assigning a dedicated on-site individual or a multi-level team approach to ensure quality and consistency for successful growth.

We have seen company worth drop by over 50% due to the vulnerabilities associated with our findings upon completion of a due diligence. Furthermore, we manage employees to support your tactical objectives and give you the best return possible. The human part of capital, however, makes it the least standardized function in most organization. Keep in mind that 30-70% of your company’s total value is human capital. We all know the danger in an acquisition. Over 60% do not succeed without planning and implementing a strong transition plan. We have completed over 400+ due diligence audits where our ultimate goal is an acquisition or merger.

Employees Are Your Most Valuable Asset

Company audits help reassure that employment of best practices are making a positive impact on your workforce throughout an employee’s entire life cycle with your organization. Often times if a function is not working to its fullest potential, it may be evaluated for improved productivity, efficiency resulting in reduced costs.

Final Recommendations

Additionally, we like to give a visual report at the completion of our audit. We define the level of compliance by our coding system: red if there is a violation of law and you are not in compliance, yellow if the company is absolutely not at a best practice, and green for functions that have good process in place and are being handled to at least a minimum standard. Most important, you receive advocated approaches to any one of the items that are not at a best practice level. Finally, we immediately implement these solid recommendations to correct the situation.

Hand making notes on compliance and HR Audits and Due Diligence graphic chart
Administrator business man financial inspector and secretary making report calculating balance. Internal Revenue Service checking document. HR Audit and Due diligence concept

Mergers & Acquisitions

  • Pension compliance
  • Reduced risks
  • Redundancies
  • Required policy administration
  • State and local government compliance
  • Wage & hour