White Paper on Hr Audit
HR Audit: 101
A Nonprofit HR Solutions White Paper
By: Sidney Abrams Senior HR Consultant, Nonprofit HR Solutions
May 2010
Introduction
Do you lie awake at night thinking about questions such as:
Is my organization in compliance with federal and state guidelines requiring that certain information be posted in view of all employees and applicants? Are my organization’s jobs properly classified as exempt and non-exempt? Would these classifications pass a Department of Labor audit? Why does my organization have difficulty attracting and retaining qualified employees? If the answer is anything other than “never,” it may be time for your organization to consider conducting an HR audit. An HR audit is a comprehensive assessment of the organization’s HR function, its structure, systems and procedures, and value delivered to the organization. An audit identifies the relevant effectiveness (or lack thereof) of human resource management practices within an organization as well as measures compliance with ever-changing rules and regulations. A properly executed audit will reveal potential areas of concern and provide recommendations for their remedy.
Why an HR Audit
It is a common fact that many nonprofit organizations are unable to employ a human resource professional to manage the function. HR is often managed by staff from the finance or administrative teams. More often than not, in nonprofits fortunate enough to have an HR professional, this person may also wear many non-HR hats. Either of the above are scary propositions, given the often cumbersome oversight of federal, state and local government regulatory authorities. An organization that is unaware of its HR responsibilities is an organization precipitously close to incurring a costly fine or lawsuit. Examples of penalties include:
DOL fines of $1,100 for any violation of failing to pay overtime to non-exempt employees; OSHA penalties as high as $10,000 for failing to post required
A Nonprofit HR Solutions White Paper
By: Sidney Abrams Senior HR Consultant, Nonprofit HR Solutions
May 2010
Introduction
Do you lie awake at night thinking about questions such as:
Is my organization in compliance with federal and state guidelines requiring that certain information be posted in view of all employees and applicants? Are my organization’s jobs properly classified as exempt and non-exempt? Would these classifications pass a Department of Labor audit? Why does my organization have difficulty attracting and retaining qualified employees? If the answer is anything other than “never,” it may be time for your organization to consider conducting an HR audit. An HR audit is a comprehensive assessment of the organization’s HR function, its structure, systems and procedures, and value delivered to the organization. An audit identifies the relevant effectiveness (or lack thereof) of human resource management practices within an organization as well as measures compliance with ever-changing rules and regulations. A properly executed audit will reveal potential areas of concern and provide recommendations for their remedy.
Why an HR Audit
It is a common fact that many nonprofit organizations are unable to employ a human resource professional to manage the function. HR is often managed by staff from the finance or administrative teams. More often than not, in nonprofits fortunate enough to have an HR professional, this person may also wear many non-HR hats. Either of the above are scary propositions, given the often cumbersome oversight of federal, state and local government regulatory authorities. An organization that is unaware of its HR responsibilities is an organization precipitously close to incurring a costly fine or lawsuit. Examples of penalties include:
DOL fines of $1,100 for any violation of failing to pay overtime to non-exempt employees; OSHA penalties as high as $10,000 for failing to post required