Auditing the HR Function

Kelli W. Vito, SPHR, CCP KV Consulting

Why Conduct an HR Audit?

Routine check-up (uncover any conditions you may have and set up a treatment plan) Determine how you can best align HR operations with organizational goals Ensure compliance with federal and state regulations

Aspects of HR Audit

Strategic Functions

Compliance Issues

HR Emerging Issues
Executive management ethics Skyrocketing healthcare costs HR outsourcing Baby boomer exodus labor shortage, aging and diverse workforce Knowledge work managing knowledge workers

Typically Out of Scope

Payroll Safety and Health Workers Compensation Retirement Plans Health Insurance Plans Deferred Compensation Programs Unemployment

HR Department Basics

HR Department Basics

Strategic Management

Department Structure & Staff Competencies

HR Facilities

HR Technology & Information Control

Strategic Management
Strategic

Plan Operational Plan HR Performance Management HR Budget Legislative/Regulatory Environment

Key Administrative Advisors

Chief HR Officer Chief Information Officer
Technology resources People resources

Chief Financial Officer

Monetary resources

Agency Head

HR is Strategic Partner when:

HR leader has/is:

strong knowledge of HR roles and functions, business strategy and operations perceived as a credible advisor by his/her peers and executive management.

Top HR position is organizationally on the same level as other program directors and administrative directors HR Dept. is viewed as approachable and trusted to provide accurate information.

HR is Strategic Partner when:

HR Dept. is part of a network of HR Depts. in peer organizations that share experiences, strategize regarding common problems, and stay abreast of latest HR trends and developments. Strategic HR plan is closely linked to overall strategic plan. Performance assessment of HR programs, including key metrics, is routinely completed.

Department Structure & Staff Competencies

HR

Organizational Chart HR Staff Competencies

HR Competencies
Cultural & Change Steward

Business Ally

Talent Manager

Credible Activist

Operations Executor

Strategy Architect

HR Facilities
Physical facilities of the HR department Reception of job candidates Legal and other employment notices Private areas for interviews and employee consultations HR convenient to employees Easy access to HR employee for questions

HR Technology & Information Control

HRIS Information Management Processes

Key HR Risk Areas

Key HR Risk Areas

Workforce Planning & Employment HR Development Total Rewards Employee & Labor Relations Risk Management

Workforce Planning & Employment

Workforce Needs Determination Organizational Design Recruiting Programs Selection Process Contractor Management Succession Planning Turnover and Employee Relations Regulations Compliance Fraud

HR Development
Training Needs Assessment New Employee Training Technical Training Supervisory Training Training Assessment Employee Coaching Performance Appraisal Counseling Discipline

Total Rewards
Compensation Philosophy Job Documentation Market Analysis Salary Structure Development Job Evaluation Salary Administration FLSA Determination & Overtime Benefits Administration Payroll

Employee & Labor Relations

Policies and Procedures Employee Attitude Surveys Employment Records Employee Compliant and Grievance Process Labor Relations

Risk Management

Safety & Health

Outsourcing and Co-sourcing

Needs Assessment Vendor Selection Process Vendor Management

KV Consulting
Kelli W. Vito, SPHR, CCP kelli.vito@kvconsulting.net 512-293-4678