HR Audits: Key Strategic, Operational, and Compliance Related Issues

Learning Objectives

• To discuss the current trends in HR Auditing.
• To analyze senior management’s HR auditing goals and issues.
• To inspect the critical components of an HR audit.
• To discuss the economic, political, regulatory, and social factors affecting HR audits.
• To review the use of HR auditing tools.
• To explain the development of the HR Audit Scorecard.

Course Description

Does your organization consider the strategic, operational, and compliance-related impact of human capital decisions on its ability to achieve its business goals and objectives?

Does your human capital help your organization achieve its management goals?

Are your employment policies and practices creating material risks and liabilities?

This CPE  PDC/RCH course discusses the development and use of HR Audits in answering these questions and in addressing critical risk management and due diligence issues.

The threats and risks from human resource management issues are increasing. No longer measured in only fines, penalties, and awards for non-compliance, human resource management affects key business metrics, including the organization’s valuation and credit rating. Further, improper human resource management can significantly reduce managerial prerogatives and seriously damage the organization’s reputation and employment brand.

As a result, HR audits have become an important tool in identifying problem areas and are increasingly evolving from an ad hoc audit activity to a critical element of an organization’s risk management and compliance processes.

Numerous external forces and factors have an impact on the demand for and scope of HR audits:

• First, in the global economy, human capital has become for many organizations the single most important determinant of competitiveness, productivity, sustainability, and profitability.  Increasingly, an organization’s human capital is the source of innovation and a driver of business success. 
• Second, a confluence of economic, political, and social factors, including corporate scandals, the failure of organizations to adequately assess risks, and increasing stockholder initiatives, have resulted in increased statutory and regulatory requirements, a call for greater transparency, and increased internal and external audit activity.
• Third, governmental agencies have become more active — some would argue more aggressive — and have committed more resources to conduct assessments of employment policies and practices.  Importantly, the EEOC, the OFCCP, U.S. DOL, and ICE have advised employers that they consider self-assessments and audits a “best practice.”

In this environment, identifying and assessing human capital-related risks have become a critical element of an organization’s success. As a result, an organization’s ability to audit and manage these risks plays an increasing role in helping it succeed.

Major Topics Covered:

• Purposes
• Overview/Evolution
• Risk Management
• Critical Components
• Audit Areas
• Developing an Audit Plan

Join this CPE Payroll Course to understand everything about HR Audits.

Overview

• HR Audits: Purposes

  3 mins
• HR Audits: Overview - HR Audits are changing

  13 mins
• Human capital management: State of the art

  25 mins
• HR-ER key performance indicators (KPIs)

  48 mins
• Employment Laws and Issues

  67 mins
• HR Audits: Four capital components

  82 mins