Auditing the HR Function

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Auditing the HR Function

• Kelli W. Vito, SPHR, CCP KV Consulting

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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

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Aspects of HR Audit
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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

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Typically Out of Scope

• Payroll
• Safety and Health
• Workers Compensation
• Retirement Plans
• Health Insurance Plans
• Deferred Compensation Programs
• Unemployment

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HR Department Basics
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HR Department Basics
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Strategic Management

• Strategic Plan
• Operational Plan
• HR Performance Management
• HR Budget
• Legislative/Regulatory Environment

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Key Administrative Advisors
People resources
Monetary resources
Technology resources
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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.

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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.

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Department Structure Staff Competencies

• HR Organizational Chart
• HR Staff Competencies

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HR Competencies
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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

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HR Technology Information Control

• HRIS
• Information Management Processes

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Key HR Risk Areas
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Key HR Risk Areas
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Workforce Planning Employment

• Workforce Needs Determination
• Organizational Design
• Recruiting Programs
• Selection Process
• Contractor Management
• Succession Planning
• Turnover and Employee Relations
• Regulations Compliance
• Fraud

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HR Development

• Training Needs Assessment
• New Employee Training
• Technical Training
• Supervisory Training
• Training Assessment
• Employee Coaching
• Performance Appraisal
• Counseling
• Discipline

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Total Rewards

• Compensation Philosophy
• Job Documentation
• Market Analysis
• Salary Structure Development
• Job Evaluation
• Salary Administration
• FLSA Determination Overtime
• Benefits Administration
• Payroll

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Employee Labor Relations

• Policies and Procedures
• Employee Attitude Surveys
• Employment Records
• Employee Compliant and Grievance Process
• Labor Relations

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Risk Management

• Safety Health

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Outsourcing and Co-sourcing

• Needs Assessment
• Vendor Selection Process
• Vendor Management

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KV Consulting

• Kelli W. Vito, SPHR, CCP
• kelli.vito_at_kvconsulting.net
• 512-293-4678