HR AUDIT CHECKLIST Created by: Sensible Human Resources Consulting LLC 303-722-8828 SeR South Washagion Dewver,CO WEDS fac 07 TELOTO Tadaialomean co ‘There isso much that can be done to creat a dynamic and effective humen resources function ~ whether you have an in-house HR professional or nt. Ideally it would be best to gather al the information asked for bolo, and then discuss the priorities with profesional. Tis can create the foundation for @ great HR function ata nonprfi for years to come. ‘What ful-biown HR anit enais and how it can be tailored it to your neds: ‘The Human Resources (HR) Audit is a process of examining policies, procedurs, documentation, systems, and practices with respect oan organization's HR functions. The purpose of the audit is to reveal the sengths and weaknesses in the firm's human resources system, and any issues needing resolution. The audit works best witen the focus ison analyzing and improving the HR fineson nthe organization The audit itslT's a diagnostic tool it will help you identify what you are missing ‘or ned to improve, but ic can’t tll you what you need to do to address these issues. That's where the HR professional comes in to work with you on resolving any quagmires the auit shows. It is most useful when an organization is eady © acton the findings and o evolve its HR function toa level where its ull potent to suppor the organization's mission and objectives ean be realized The suit process consists ofa eres of questions covering the eight primary componerts of the BR funeton: 1D Roles, head count, and HR information systems (HRIS) Recruitment 1 Documentation 1D Training, development, and career management 1D Compensstion and benefits Cr Performance measurement and evaluation 1 Termination and transition 1D Legal issues and personnel policies ‘The focus ison how these activities and tasks are actually performed inthe organization. ‘The first step is to collect al she pertinent information. The process of geting information in and of itself, canbe quite informative. How are needed improvements identified? ‘Once information is gathered, we will review each major section and note disparities Decween paper (what you thinker say you do) and predce (what you actually do, as [SS Spe aries and nurse Clad Nonprofit Ashton a fied for ‘nermatonl protean an shoud ete Costus splenic te your rgienion oul loses tots ith era's pci cocoa Phe ck ‘Sse fauna ssHR AUDIT CHECKLIST Created by: Sensible Human Resourees Consulting LLC. 303-722-8895 $3 Sea Wang Dane CO F029 — Hoc TEATS Tainan revealed bythe answers tothe audit questions). This can then be compared to best Practice (what you should do to best suppor your organization's mission} ‘A cautionary note: Finding out what is insufficient and inadequate i the first step ‘ward improvement. If deficiencies are identified, its imporsant to take steps to comet, those. Organizations should take that first step only when they are ready to act onthe findings, and io make necessary improvements in thei HR skills, processes, and systems. How is follow-up and correction done? Improving the HR system takes some time. A work plan — witha imeline, sccountablity and deliverables — should be erated afer you review the completed saudi and identify areas whore improvements need, Follow-up and review should bea regular management function, performed on sn ongoing bass ‘The Human Resources Au Roles, Head Count, & Human Resource Information Systems (HR ‘How many employees are currently on staff? Locations? ‘+ How many employees are = Regular "Newly Hired and in Orientation period ~ Temporary + Full Time + Part Time = Exempt + Non-Exerapt ‘+ Whatis the definition of part-sime employee? (.e., whats the maximum number of hours an emplayee ean work tobe considered partie?) ‘What isthe minimum number of hous an employee has 1 work 1o be considered fallsime? ‘+ How longs the new hire “orientation” period?” Are employees aware of ' How long can an employee be temporary? ‘+ How many employees have supervisory responsibil”? ‘+ Are there currently up-to-date job descriptions forall employees? IFnot, which ones on’s have descriptions? Are the jo descriptions ADA compliant with essetil ‘DiSinae Sepia ates an sores Fo ti Claro Nest scion we SET intron puree iy and tnd ne cst x pfesonal atvie tseyout ‘ramon shu slo ples nb Site ogee’ s pri cecansames Powe ck ‘prop aon sens sd,SAMPLE HR AUDIT CHECKLIST (Created by: Sensible Human Resources Consulting LLC 303-722-8025 Soa Washington Denver, CO W020) ne HS-TEITIS Tai ataceran ‘functions and physical requirements? Do they have Bona Fiée Occupational Qualifications (BFOQs)? + Are independent contactors used? IP so, how many ar being used? And, for what functions? 1+ Ts he 20+ point et for Independent Constants being sed fr classification? ‘Have issues related oclesstication of employees been mised? ‘+ EBO-I compliance: ifapplicable, do you file annually? Recruitme ‘How did the work force got tobe the current sie? Was it reactive or planned? ‘Whar ee some of your organiation’s fase needs for personnel? ‘+ Whar are the procedures fo hiring in your organization? ‘+ What recstmentsoures are used? (eg, advertisements, job boards referrals, soci networking, et.) ‘+ Are curent employees given appropriate consideration for promotion o¢ lateral postion changes? Who makes those decisions and are they properly documented? Who does the preliminary sersening of candidates? ‘Who selects candidates fr interviews? ‘+ Is waining provided for those who conduct interviews? ‘+ How are the reeruitment, soreeing, and selection processes documented? ‘What sche interview process that i used (eg, individual, sequential, panel, ‘behavioral questions)? ‘+ Does application form ask if epplicant needs accommodation (ADA? ‘© Who hold inal authority to hie? ‘© Who checks references? IFoutside frm, are you supplying roquited Fair Credit, Reporting Act forms bafore and after it you deny employment bared on findings? ‘+ How is reference checking documented? Who makes the offer of employment? ‘shore standard offer later? If's0, attach coy. + Where isthe hiring paperwork generated? ‘+ Who negotiates compensation packages? 1 _Listthe practices you believe are unique to your organization, Disoner Supe arisen an erent fo he Clo Norra ssoiton we or intrmtonl perpen nl and sneldnot becnmie se rots ei tak yout ‘Srnesion shed nor sampler nhs Sethe opinion ese ccamsaer Paws ck spp psa ssn feat.‘+ Whicis the tumover rate in your organization? Has this changed ove sie? + Who gives references for former employees? ‘+ If government contactor re you AAP and OFCCP compliant? Who is keeping wp with all the required logs for AB (Like applicant racking spreadsheet, self idemfication forms, ete)? tat ‘Where and with whom are the personnel files curently eld? 198? Colorado atestations? Are they completed acevraely and on time? ‘+ Whar document are held in personel files? + How are the following documented by your organization? ‘Hiring: Applicaton, Iterviewing, nd Reference Checks + Teansitons Paid Time Off + Training + Discipline + Work History 1 Work Assignments Significant accomplishments * Emergency contact information ‘+ Performance evaluation and performance management + Termination How long are files held and where are hey stared after employees leave? ‘+ Whatis the interface between HR and Finance? + Isa payroll service used, and if'so, which one? * Does the payroll service provide any governmental employment filings? Are you sure they've made the necessary changes forthe employee tak changes under ARA ed can handle Fur changes? Ts owverify Being used for new hires? + Isthere training of managers and employes about personnel ile, and policies and procodures for accessing thea? ‘+ How are Paid Time Of FMLA and Workers Compensation documented? Disha Sopa aes ani eouren Forte Cleats Newpoit Asocnion aaa 4 intron puree ot and soe becasue spend ave as ye pian shou sor amplea bes the opsan spore seamsnces Ps eck ‘Morera sis ssn teste.SAMPLE HR AUDIT CHECKLIST (Created by: Sensible Human Resources Consulting LLC 303-722-8595 Sout Wahngon Dane. CO 81209 fac MTEC TeakTaonsaa er ‘When requests for employee information are made to your organization, who fils the request? ‘+ san HRIS system being used, and iso, which one? Does it imerface with payroll? ‘Training, Development and Career Management ‘+ Who is responsible for new employee orientation? What arc the clemens ofthe orientation progrant? ‘+ Where and to whom do new employees go when they have questions about your organization other jobs? ‘+ Istherea formal raining program for employees and managers? Ifo, pease describe ‘+ What esining and development initiatives have occured in your organization? ‘+ How are managers and supervisors trained and prepared fr their roles? ‘What isthe average length of time an employce stays with your organization? Does this vary by position type? ‘+ How much does your organization spend annually (in toa and per employee) on ‘employee training and development? Doss this var by position type? ‘Compensation and Benefits Basic Compensation Questions ‘+ Isthere formal compensstion program? 1 How are wages set? Ae formal salary ranges se? ‘+I formal salary ranges are set, are they made public to employees? 4+ How ae jobs rated? ‘How frequently are jobs revalustd or updated? Are any salary surveys sed? IfSo, which ones? ‘+ Arepay ranges revised asa result ofthese surveys? How froquently? ‘+ Who in your erganiastion (what position) administers the compensation program? Are COLA’s given, and if so wht isthe basis forthe COLA? Are merit increases given, and if so are they integrated with performance evalustion? ‘nratoal press oly ata mow be const pos dic ame our erpuiton soul or spl o bs he onan spec samsances Fea ook “Spropate rtnn! tains fooled(Created by: Sensible Human Resources Consulting LLC 303-122 HebSous Wasiagon Dener,CO 209 fre 5-72-0106 Taiaataoasaacom = HR AUDIT CHECKLIST Is there a bonus system and, iso, how is it structured? How isthe compensation program and total compensation package communicated to employees? What are he “cultural issues” or beliefs related to compensation in your organization? How is employee communication regarding compensation and benefits delivered in ‘your organization? Health and Welfare Benefits Describe the health insurance program proved by your organization, Are you preparing forthe Health Care Reform Act requirements? Have you done en analjis ofthe financial impact? Docs the orzanization contbute towards coverage and ifs a what percentage? Are domestic parmers covered? IFso how sre taxes being handled? ‘What are he eligibility requitements fr heal insurance and ther benefits? Do you havea Premium Only Plan (POP)? ‘Which of te following health and wellness benefits are offered, and what ae he limits and requirement for coverage? Who is competing any required annual Form $500s and Surnmary Annual Reports? ‘Do you outsource admin of COBRA, Flexible Spending Accounts, anything else? Is ‘COBRA administration in compliance withthe 2009 AARA (stimulus) law? Is your Dental Vision Disability (shor andor lng tem) Employee Assistance Progam Life Insurance ‘Other wellness benefis (eg, gym membership, smoking cessation, ctc:) Flex Spending Accounts Other benefits ‘outsourcer taking an "lability" for erors (i that in our contrat)? ‘iss Spe, aise and scars fom he Clo Nonpat Asoaton are fe fr Inrmtcal pons nly and sould cosas prfeona sie ted jour rian shoud lor splot be the ognize crcomstaes.Piae ee prope sal anes ite,© HR AUDIT CHECKLIST ‘Created by: Sensible Human Resources Consulting LLC 22-8825 [388 Sou Wasingon Dewar CO 80208 a 50-72-0106 Tae Tatanran om Pension and Retirement ‘+ Whats the pension or retirement plan? ‘+ What isthe vesting period?” * Can employees contribute? ‘+ Ifautomatc enrolment, do you have all waivers? ‘Have there been any problems withthe 401(k) administration? Paid Time Off ‘Wher holidays are pil and who is gible fr them? + Istere PTO system ori it split berween vacation and sick leave? Mit is taight PTO, what are the rates of accrual and caps? ‘What isthe vacation-PTO schedule, and how i it ared? ipibiiy requirement for vacation? ‘+ Isthereacopto limit he amount of PTOWacation accrued? ‘+ Are employees perminad to substitute sick leave fr vacation? ‘+ How is unused accrued PTOWacation treated? ‘+ Isthere a “refund” policy ifan employee terminates having used to much time of?” + Gon employes conus eevePTO so ter ply anise, wha ae ‘+ Arenon-exempt employees being given coret “meal” and “rest periodsreaks™ based on state laws? = What isthe Other Time OfF ‘+ Are FMLA policies and ceiticaton and notification forms upto dat with 2009 changes in law? + Ifyouare not offering FMLA to employees in non-FMLA locations how ae you Dandlng the communication? ‘+ Areemployees and supervisors aware of workers’ compensation and FMLA procedures? shoul ste conrad a proton ais Hf wed, our retin shoul lor sales bes the epson’ s psf creumsanes Passe ek ‘ropa profs sec ectedPLE HR AUDIT CHECKLIST Created by: Sensible Human Resources Consulting LLC 303.722.8825 3 South Wishion Deve 0 SOB SE TEEOTOS Tees 4 Desetbe the past and current performance appraisal system in your organization. ‘© Taperformance appraisal insirument i used, please atach a copy. (If te instrument lifes by postion, please tach all instruments) ‘+ What ype of process is used (360, supervisor only, peer evaluation, upward outcome? ‘© What ype oF raining suse in relationship to performance evaluation? + What isthe ol of the supervisor/nanager in performance appraisal? ‘+ Whatis the focus of performance management in your organization? ‘+ How offen and consistently isthe process used? ‘Does HR review appraisals and (any disciplinary documentation) before the supervisor shows itto employee to assure the documents have been writen objectively and legally? inston and Transi ‘at-will employer? Are there any employment contacts? ‘+ Is your organization an ‘+ Ifyou have a progressive discipline policy do you have an “out” o terminate someone without going trough all the steps? ‘What other causes or conditions of termination of employment exist? ‘+ What procedures are used for “Termination for Cause “lob Closure Resignation Job abandonment ‘+ What evel of approval is neaded before a termination ean occur? ‘= Isthere any formal checklist or egal review prior to termination? * Are ui nevewspefomed forall employes wh eave? And what o you do wih ‘+ What documentation i required forall employee transitions? ‘+ Trany ofthe stats in which you have offices require teeminaton/separation”leters, are you providing them? + Are you aware of each state's “final payeheck” lave for both voluntary and ‘nvolumary terminations? ‘Sule eile an soars fam hs Clo Nonprofit a Ted fr ‘arma purposes oly ad shoul abe onsred = pofeoal dvi wed our ssuinsion shoud lr spe wo bes te ogi’ pes ceomsunes Phase ek sSAMPLE AR AUDIT CHECKLIST ‘Created by: Sensible Human Resources Consulting LLC 303-722-8825 $388 Sou Washngon Dewer.CO 80200 faci TEATS Tndonnsncom ‘+ How are references handled in your organization? + Whois responsible for intemal communications regarding difcult erminations? (Ge, commanicating the termination to ater employees.) 1+ Ifseverance is offered for ayo are you requiring release agrecments and wa i ‘retin those? (Artach sample of one for thoke under 40 years of age snd one for those over 40). Do you have a standard Rediction-in-Foree (RIF eter tht can be ‘tweaked for future RIFs? (attach sample) Have you been doing adverse impact analysis foreach RIF? ‘Legal Issues / Personne! Poiciss ‘+ To your knowledge, are all employees appropriately clasiied? ‘+ Are all mandated posters updated in all locations? What personnel po the employes handbook are curently being used? (Please atach copies) ‘When was the last ime the employee handbook and other personnel policies were reviewed and updated? ‘+ Ifyou are multi-state have all policies been checked for state law compliance? How does HR keep updated about changes in stat, local and federal laws? Jes other han 1+ Istherea disparity beowoon policies and practices? ‘+ Who has organizational responsibilty fr legal or employment questions? Who investigates discriminatiowharussment complaints? ‘+ Wappicable, are you Drug Free Workplace Act compliant? ‘+ Isharassmenvdiscrimiation taining rogulasly provided? ‘+ Have supervisors been notified they are legal “agents” ofthe company regarding harassmentidiserimination issues? Have they signed acknowledgement forms regarding this? ‘+ How are employee grievances dealt wih? Is there a process for employses to lodge complaints? Are there a variety of individuals te whom employees can lodge complaints? ‘+ Have you examined disciplinary polices and procedures and employee personnel files to determine:(1) whether your work rules are job-elated 1 the proper performance ofthe employee's jo:(2) whether the work rules are being enforced ‘uniforly by all supervises; () whether the employees have notice ofthe work rules and the consequences of net following them: (8)whethe a prompt investigation is being eondueted to determine whether there isa violation before discipline is imposed; () whether discipline is promply and consistently imposed once 8 ‘violation ofa work rule i confirmed; (6) whether the discipline that imposed on [Se Sapien ele drat ote Cola Nonprolt Assaon a SS Gr ‘nfl purposes ely td shoud mtb connred spose! saves ed our ‘spain shoud alr earls nbs the opizntio's specs ceconstaee Phase mck ‘foro basen sence foodsResources Consulting LLC 303-722-8825 ‘Soa Wasigion Dame, OO 60009 foe STEATOG Toad om the employee is justified by the offense: and (7) whether supervisors are uniformly and consistently documenting werk rule violations andthe discipline impose. ‘+ Have you checked your commercial insurance policy tose ifany Employment Practices Liability insurance is offered in if? ‘Shin ail and ease om te Caloris Noro Aeon a asad ie 1 inrmatonl purer ol and sould nie cosuc spfesonal eles we your rian soul loses bes theese’ s pes crstanse: laws sek ‘Spore nisin ss teeta,