Think of it like an annual physical – just to make sure your company's HR is healthy, and to catch anything that may be, unknown to you, off track.

Outsourcing Human Resource (HR) Audits

It’s no secret that in today’s highly competitive business climate, companies operate within a very constricted and regulated employee framework. As a business owner, therefore, it is absolutely vital that you remain up to speed with the complex laws and regulations that govern the relationship between your organization and its employees, hence the need for human resource audits.

Human resource audits are essential for mitigating any regulatory and legal liabilities that may emerge out of the HR policies and procedures that your business adheres to.  Conducting HR audits provides your business with critical insights into the competitiveness of its HR policies by evaluating the best practices from other leading businesses in your industry.

The ultimate goal of an HR audit is to detect any flaws in your HR strategy and resolve them before they become a liability to your business. In other words, it provides you with the opportunity to evaluate what high-performing businesses are doing well and how you can adapt and improve on those HR strategies to make them more efficient.

What Is The Scope Of Human Resource Audits?

The decision on what aspect of your human resource to audit depends on several factors including your budget, the perceived flaws in your organization’s HR environment, and the type of audit you wish to conduct. Nevertheless, here are some of the areas that you might want to examine closely when conducting an HR audit:

1. Performance Audit

HR performance audits typically involve conducting reviews of personnel files with the aim of determining the quality of feedback that your employees receive from the management. Lack of good quality feedback can negatively affect the growth and job satisfaction of your staff. So, conducting a performance audit helps you hone in on any problems in your employee feedback and review system and resolve them before they impact the development of your staff.

2. Compliance Audit

An HR compliance audit examines how effectively your company complies with existing employment rules and regulations at the local, state, and federal levels. This is a risk management assessment tool that is designed to make sure you’re not breaking any laws or putting yourself at risk of being sued.

3. Best Practices Audit

The aim of a best-practices audit is to compare your business’s HR policies and processes with accepted industry standards. Conducting this type of audit is highly beneficial to your business (especially if you operate a small startup) since it lets you know whether you’re on the right track based on metrics like an increased number of employees, development of employee handbooks, and new job descriptions.

Why Outsource HR Auditing Processes?

Whether you run a small startup that’s only starting to take off, or you operate a mega enterprise with hundreds of employees, HR auditing is absolutely critical to the success of your business. Unfortunately, if you’re a small-to-medium-sized business owner, you may not be in a position to hire a human resource department due to budgetary constraints.

The good news is that you can outsource your HR auditing processes to a dedicated auditing company for a fraction of the cost of setting up a full-fledged HR department.

Here are some of the key benefits of outsourcing your HR audits:
•  It Allows You To Focus On Other Key Business Tasks

Since it’s not directly involved in the development of products and services, the human resources department is often regarded as an unprofitable segment of an organization. Nonetheless, having a large HR department might impose a burden on your company’s human and financial resources. Outsourcing your HR audits to a third-party organization, on the other hand, allows you to focus your attention and the most of your resources on income operations.

• Gives You Access To Expert Knowledge

Delegating your HR audits to dedicated companies allows you to afford the services of the top experts in the industry. Employing skilled HR specialists necessitates significant financial investments and high remuneration which only big firms can manage to pay.  HR outsourcing, on the other hand, provides expert HR solutions to businesses with limited resources.

A Final Word

Are you looking for an experienced auditing company to provide you with professional HR auditing solutions? If so, look no further than Human Resources by TBC LLC. We are a Human Resource Consulting company that is dedicated to ensuring our client businesses optimize their employee environment to improve performance, employee satisfaction, and overall growth. Call us today to learn more about our services.

The following are a few of the areas reviewed:

  • Employee Handbook
  • I-9 procedures and files
  • Employee documentation – such as counseling, offer letters, termination letters, etc.
  • Required Posters and notices
  • Exempt vs Non-exempt classifications (Hourly vs Salary)
  • Performance evaluations
  • Employee related forms
  • Benefits files and documents
  • Hiring practices (advertisements, procedures, application form)
  • Family Medical Leave Act procedures and files (if applicable)
  • Training Files
  • Safety files and documents

Sometimes when we recommend a change, you might feel more comfortable doing things the way you’ve always done them because there’s never been a problem before– we respect that, but if you change your mind or if something comes up, our help is a phone call away. We aren’t here to judge what you have in place or to criticize you in any way; we are here to educate and align your company with current regulations and laws that are applicable.

We prepare you to face whomever shows up at the door (DOL, ICE, and other government-alphabet-people). You have professional HR experts making sure you have every required poster, policy, safety requirement, and a staff of fairly compensated, fairly treated employees.