Take a Look at Your Organization’s Policies and Procedures Through the Lens of an HR Audit
The word “audit” usually promotes concerns of “what are we doing wrong” or “what did we miss”. In reality, an audit is just a standardized assessment of your organization that lifts up opportunities for continuous improvement and risk mitigation. An HR audit helps identify whether your organization’s Human Resources department is operating in a healthy and compliant fashion.
The results obtained from an HR audit help identify gaps, ineffective processes, potential violations and more. In addition to ensuring your HR processes, policies and procedures are compliant, HR audits will help an organization achieve and maintain a competitive workplace. With the ever-changing nature and demand of HR management, HR professionals should always keep their focus on understanding whether their current practices have a positive impact on business goals. An HR audit will achieve this.
If you are not convinced that an HR audit is extremely beneficial, it may be helpful to know where most employers fall short. HR professionals are already aware that areas such as hiring, performance management, discipline and termination have caused the majority of lawsuits, however; additional risk areas that should be carefully reviewed in an HR audit include:
Misclassification of an employee
Employee handbook
Wage & hour practices
Personnel files
Almost every organization has positions that have been misclassified as exempt or non-exempt from overtime eligibility. The complexity of wage & hour laws and its regulations creates the potential for errors that can put an employer at risk for overtime liability.
An employee handbook is an excellent business tool that enables employees to know what is expected of them and will help mitigate potential damages to the employer. The general approach includes a review of the existing employee handbook and identifying policies that are not in compliance. Specific recommendations can be made based on best practices as well as state and federal requirements. The overall design of the employee handbook should reflect the organization’s business philosophy and it should clearly communicate the employer’s expectations of its employees.
Employers typically require non-exempt employees to punch a time clock or complete time sheets reflecting their hours worked. These time records are the employer’s primary means of defense against wage & hour claims so it is imperative that time-keeping policies and practices are clearly communicated and consistently administered.
A review and sampling of personnel files often reveals inadequate, expired or wrongly placed documentation. Accurate and detailed records are essential for employers to defend any type of employee claim, particularly unemployment compensation or wrongful termination claims.
Federal, state and local employment laws are complex, often conflicting and at times counterintuitive. Violations, unintentional as they may be, lead to lawsuits, fines, bad publicity, loss of talent, employee dissatisfaction and lost revenue. Mitigating those risks is a key measure of success for the HR function and is critical to the success of the organization as a whole.
Engaging in a comprehensive HR audit not only ensures compliance of applicable laws, it also highlights opportunities for increasing the effectiveness of HR practices to improve employee performance, engagement and retention. At the conclusion of such an audit, HR leaders must engage in continuous observation and improvement of the organization’s policies and procedures to ensure best practices are utilized.
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Lorraine S. Webb
Lorraine Webb is a human resources and organization development executive with significant experience in the energy and utility markets.
Currently, Ms. Webb is Vice President of Human Resources and Organizational Development for Philadelphia Gas Works (PGW) and is responsible for all human resources and organizational development functions including compensation, benefits, recruiting, talent management, wellness, EEO, EAP, HRIS systems, learning and development.
Ms. Webb and her team have played a pivotal role of building a talent management program and succession planning process in the face of exiting baby boomers, while effectively managing significant challenges in terms of internal and external constraints.
Recently, Ms. Webb and her team were awarded the inaugural 2019 Employer of Choice award by the Office of Workforce Development, City of Philadelphia. This award recognizes exemplary HR practices.
Further, under her leadership PGW won the HR Department of the Year Award in
2011 and has been cited on numerous occasions as a Best Places to Work for
Minorities and Women in Engineering by Diversity Magazine.
Ms. Webb was an honoree for Philadelphia Leadership Awards for Women’s E News, 2010
Adding to her experience in the energy/utility arena, Ms. Webb has worked as an HR professional in the pharmaceutical industry, manufacturing and banking. Ms. Webb is passionate about coaching and enjoys helping professionals and executives reach their full potential.
Ms. Webb is a graduate of Binghamton University and is a member of SHRM.
Tom Sontag
Tom Sontag is the Executive Director, Human Resources at the University of Pennsylvania. In this role, he is responsible for the Learning & Education, HR Communications, Quality of Work Life, and Tuition Benefits functions. Collectively, these provide Tom with the opportunity to pursue his passion for talent development and workforce effectiveness.
Tom has worked at Penn since October 2011 and has nearly 35 years of experience in training and organizational development with large organizations. Before joining Penn’s Division of Human Resources, Tom held training and organizational effectiveness roles for organizations such as Development Dimensions International (DDI), PNC Financial Services Group, Citizens Bank, Drexel University, NRG Energy, and Covance. He earned a BA in English literature from John Carroll University, an MBA with a focus on human resources and leadership development from Duquesne University, and a Ph.D. in educational leadership from Drexel University. Additionally, he has earned the SPHR and SHRM-SCP certifications.
Peggy Verdi
Peggy Verdi is a dynamic Human Resources executive with nearly 35 years of experience in HR strategy, change management, organizational design, executive coaching, team effectiveness, and talent assessment, development and management.
Peggy currently holds the position of Vice President, Human Resources and Administration (CHRO) at Subaru of America, Inc., overseeing all aspects of human resources and corporate facilities & services, its practices, and operations in order to meet the needs of the constantly evolving business.
Prior to joining Subaru, Peggy served as Chief Human Resources Officer at BAYADA Home Health Care and as Executive Director, Human Resources Business Partner/Change Planning at Bristol–Myers Squibb, a leading manufacturer of pharmaceuticals and biologics.
Peggy received a Bachelor of Arts in Liberal Studies with a focus on Labor Relations and a Master of Arts in Human Resource Management from Rutgers University.
Elizabeth Quarello
Elizabeth Quarello (SPHR, SHRM-SCP) is an energetic senior HR leader with over 16 years of diverse experience in fast-paced corporate settings across a variety of industries, including management consulting, architecture, media, and biotechnology and pharmaceuticals. She is a hands-on leader and influencer with a passion for driving organizational change to create positive working cultures that enable organizations and individuals to realize their full potential.
Elizabeth is currently the Senior Director of Human Resources and Operations for Avid Radiopharmaceuticals, a wholly-owned subsidiary of Eli Lilly & Company. In this role, she is responsible for oversight of all HR functions, serves as a key senior leadership member, and oversees operational functions including HSE, compliance, contract administration, facilities management and administration.
Mike Higgins
Mike Higgins is a seasoned Human Resources leader with over 20 years’ experience in leadership development, employee/labor relations, performance consulting and executive coaching programs in the Retail, Financial Services and Healthcare industries.
In his current role as the Senior Director of Strategic Talent Management & Learning at The Children’s Hospital of Philadelphia, Mike leads enterprise-wide talent management activities, including leadership, professional skills, career and organizational development, succession planning, performance management and employee engagement for the Hospital’s 15,000 employees.
Mike holds a Bachelor’s degree in Secondary Education from LaSalle University, and a Master’s degree in Education (Corporate Education/Instructional Systems Design) from Pennsylvania State University.
