With regulations that are constantly changing, staying on top of human resources policies is time consuming. A smaller business without the personnel resources to research changes in policy may be opened up to potential problems by not staying in compliance with regulations. While many business owners have a working knowledge of high level HR policies, they may not know some of the subtler nuances that may cause issues down the road. To make sure your business hasn’t overlooked any HR issues, an HR Audit may be a great resource. Lynda Zugec, HR professional and founder of The Workforce Consultants explains the process and its potential benefits to your organization.


lynda zugec v2 What You Need To Know About HR Audits

Lynda Zugec
(Photo courtesy of Lynda Zugec)



Choose Which Type of Audit Is The Most Appropriate

Before calling in a consultant, make sure you know which type of audit is right. Zugec explains, “Human resource audits help business owners identify issues and solve problems before they escalate. Business owners can use these audits to evaluate human resources strengths along with areas that can be improved upon for better efficiency or potential cost savings.” Zugec states that there are four common types of audits:

  • Compliance: A compliance audit evaluates the company to ensure that it is complying with current federal, provincial, and local laws and regulations.
  • Best Practices: Offers a comparative analysis of your business with others, allowing your company to implement HR policies that are competitive in the market place.
  • Strategic: Evaluates the strengths and weaknesses of systems and processes and measures them against the company’s strategic plan.
  • Function-Specific: This audit is an evaluation of a specific aspect of human resources, such as payroll, employee development, or personnel records retention.



Make Sure Your Business Complies

One type of audit that is more common for smaller businesses is the compliance audit. These audits are generally conducted in two parts. States Zugec, “Step one involves a profile of the company’s Human Resources operations such as policies related to recruiting, training and career development, employee relations, etc. Step two involves a review of factors that may indicate a potential problem, such as high rates of absenteeism, many vacant positions, high turnover, and the nature of grievances.”

Any of these types of audits are beneficial, and if you haven’t had one, it may be time to get an evaluation. Being out of compliance with HR regulations can be costly to a business by way of employee productivity and turnover and even lawsuits. By having a professional consultant evaluate your company with an objective eye, you can not only ensure that your business isn’t at risk, you will also have a tool to use as a starting point in attracting and retaining the best employees.



Alaina Brandenburger is a freelance writer living in Denver. Her work can be found at Examiner.com.




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