How Human Resources Audits Are Vital Practices and Strategies

audit concept at working with plan and analyzing investment charts at workplaceHuman resources involves a lot more than just hiring people, posting jobs, and running interviews. Due to government regulations as well as an assortment of related benefit and retirement programs as well as tax requirements, HR involves a tremendous amount of paperwork.

Everything from training records to paycheck withdrawals is tracked, recorded, archived, and reviewed. Sometimes, they even get pulled into legal matters. No surprise, most HR offices operate within specific compliance rules that must be met and make sure they are maintained on an ongoing basis. If not, the business or agency could be exposed to serious legal liabilities.

This is where a human resources audit like that provided by SOLV HR becomes so essential. Call us, and we can show examples in detail of how an HR audit looks and works.

Employee Continues to Remain a Records Generator

Every employee in a business or organization generates several documents about their employment monthly. Most of the paperwork and records are associated with salaries and tax withholding on their pay. However, occasionally, paperwork involves a lot more, ranging from retirement to health benefits coverage to training records.

Organizations are required by both federal and state law to keep employee records in a specific format and form. HR offices are also required to keep the information protected, especially nowadays, with so much risk for identity theft.

However, rules are only as good as the people who follow them. When an HR office becomes erratic in compliance, mistakes start to happen. And that can lead to serious problems that cause financial penalties for the organization.

For example, a construction company that fails to train its employees on workplace safety, keeps records on the same, and keeps detailed records on injuries, can be subject to serious financial penalties for related violations. That can be thousands and even hundreds of thousands of dollars. The same goes for poor record-keeping of payroll tax withholding or safety in the workplace.

HR Audits Provide a Key Snapshot Before a Problem Occurs

An HR audit is designed to apply a full examination of an HR office and its policies to make sure operations are functioning correctly. A human resources audit checklist will typically confirm policies and procedures that sufficiently cover what is needed are in place and available and that the current office practices follow those rules correctly.

When the former is found missing or the latter is found to be out of sync with the rules required, findings are identified. These are then compiled in an audit report, specifically pointing out what is being done wrong and what is needed to fix the problem, and why. Unsurprisingly, an HR audit provides management with an objective third-party look at whether their HR office is running right or becoming a sitting powder keg of legal headaches.

HR audits can also provide different benefits. One form, as described above, focuses on reducing risk.

A different approach could identify where efficiencies and improvements could help make HR operations function better than they are currently, which could include compliance, best practices, and performance improvement. Within the last one, there can also be evaluations as to whether using a third party for HR support might be a better idea than keeping the operation in-house as well. For example, it might be better to outsource payroll management and tax handling to an HR company Las Vegas resource while keeping hiring and training in-house.

A Las Vegas HR Audit Resource for Your Specific Business Type

SOLV HR provides comprehensive HR services in Las Vegas support, including HR audit examinations. Because our team is specifically focused, trained and applied in HR matters regularly, we’re able to examine all types of businesses and organizations and craft an HR audit approach that works for what is needed versus a generic approach. Doing so provides a meaningful examination report that is useful on a practical level and can be applied by the client immediately in real-time changes.

Don’t leave your human resources compliance to a guessing game, waiting for an external investigation or lawsuit to expose risky practices. Nip those problems in the bud before they become serious headaches and costly damage control. Call us at SOLV HR today.

SOLV HR Provides Experienced Human Resources Consulting and Support Nationwide. Contact us today.