Auditing the HR Function

Kelli W. Vito, SPHR, CCP KV Consulting

 Why Conduct an HR Audit?
 Routine check-up (uncover any
conditions you may have and set up a
treatment plan)
 Determine how you can best align HR
operations with organizational goals
 Ensure compliance with federal and
state regulations
Aspects of HR Audit

Strategic Compliance
Functions Issues
 HR Emerging Issues
 Executive management ethics
 Skyrocketing healthcare costs
 HR outsourcing
 Baby boomer exodus – labor shortage,
aging and diverse workforce
 Knowledge work – managing
knowledge workers
 Typically Out of Scope
 Payroll
 Safety and Health
 Workers Compensation
 Retirement Plans
 Health Insurance Plans
 Deferred Compensation Programs
 Unemployment
HR Department Basics
HR Department Basics
 Strategic Management

 Strategic Plan
 Operational Plan
 HR Performance Management
 HR Budget
 Legislative/Regulatory Environment
Key Administrative Advisors

People resources

Technology resources Monetary resources

 HR is Strategic Partner when:
 HR leader has/is:
 strong knowledge of HR roles and functions, business
strategy and operations
 perceived as a credible advisor by his/her peers and
executive management.
 Top HR position is organizationally on the same
level as other program directors and
administrative directors
 HR Dept. is viewed as approachable and trusted
to provide accurate information.
 HR is Strategic Partner when:

 HR Dept. is part of a network of HR Depts. in

peer organizations that share experiences,
strategize regarding common problems, and
stay abreast of latest HR trends and
developments.
 Strategic HR plan is closely linked to overall
strategic plan.
 Performance assessment of HR programs,
including key metrics, is routinely completed.
 Department Structure & Staff
Competencies
 HR Organizational Chart
 HR Staff Competencies
HR Competencies
 HR Facilities
 Physical facilities of the HR department
 Reception of job candidates
 Legal and other employment notices
 Private areas for interviews and
employee consultations
 HR convenient to employees
 Easy access to HR employee for
questions
 HR Technology & Information
Control
 HRIS
 Information Management Processes
Key HR Risk Areas
Key HR Risk Areas
 Workforce Planning &
Employment
 Workforce Needs Determination
 Organizational Design
 Recruiting Programs
 Selection Process
 Contractor Management
 Succession Planning
 Turnover and Employee Relations
 Regulations Compliance
 Fraud
 HR Development
 Training Needs Assessment
 New Employee Training
 Technical Training
 Supervisory Training
 Training Assessment
 Employee Coaching
 Performance Appraisal
 Counseling
 Discipline
 Total Rewards
 Compensation Philosophy
 Job Documentation
 Market Analysis
 Salary Structure Development
 Job Evaluation
 Salary Administration
 FLSA Determination & Overtime
 Benefits Administration
 Payroll
 Employee & Labor Relations
 Policies and Procedures
 Employee Attitude Surveys
 Employment Records
 Employee Compliant and Grievance
Process
 Labor Relations
 Risk Management
 Safety & Health
 Outsourcing and Co-sourcing
 Needs Assessment
 Vendor Selection Process
 Vendor Management
 KV Consulting

Kelli W. Vito, SPHR, CCP

kelli.vito@kvconsulting.net
512-293-4678