In my previous post, I addressed the importance of reviewing employment applications for compliance with the Minnesota “Ban the Box” legislation. A similar review of other employment documentation and practices can be a useful tool in detecting problems in your systems before they cause problems in your actual operations.
An employment practices (or human resources) audit can be done internally or through an outside consultant or attorney. If you choose to do an internal audit, it is important to assign the task to someone who does not work in or have responsibility for the human resources function within the business. The most likely candidate for an internal auditor is an in-house attorney. Lacking such a position, you can rely on someone who has experience with business systems or conducting other types of audits. If the person does not have a thorough understanding of employment laws and good human resources practices, however, he or she will require training and guidance from an outside resource.
The audit should address the full range of human resources functions, from the hiring process to termination of employment issues and everything in between. In addition to looking at forms and policies, the auditor should probe into what actually happens on a day-to-day basis (how things operate in the real world). For example, having a form to be used whenever someone requests time off is of little relevance if supervisors grant vacation requests without ever requesting that employees complete the form.
The audit will help you recognize weaknesses in your processes, identify procedures that can be made simpler through technology, and address potential liabilities. Completing an implementation plan after the audit will improve human resources efficiency, correct any legal non-compliance issues, and put the business in the best possible position to address human resources issues that inevitably arise in every organization.