Auditing the HR FunctionAuditing the HR Function

Kelli W. Vito, SPHR, CCP KV ConsultingKelli W. Vito, SPHR, CCP KV Consulting

Why Conduct an HR Audit?

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

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 AuditAspects of HR Audit

StrategicFunctions

ComplianceIssues

HR Emerging IssuesHR Emerging Issues

Executive management ethicsSkyrocketing healthcare costsHR outsourcingBaby boomer exodus – labor

shortage, aging and diverse workforce

Knowledge work – managing knowledge workers

Executive management ethicsSkyrocketing healthcare costsHR outsourcingBaby boomer exodus – labor

shortage, aging and diverse workforce

Knowledge work – managing knowledge workers

Typically Out of ScopeTypically Out of Scope

PayrollSafety and HealthWorkers CompensationRetirement PlansHealth Insurance PlansDeferred Compensation ProgramsUnemployment

PayrollSafety and HealthWorkers CompensationRetirement PlansHealth Insurance PlansDeferred Compensation ProgramsUnemployment

HR Department BasicsHR Department Basics

HR Department BasicsHR Department Basics

Strategic ManagementStrategic Management

Strategic PlanOperational PlanHR Performance ManagementHR BudgetLegislative/Regulatory

Environment

Strategic PlanOperational PlanHR Performance ManagementHR BudgetLegislative/Regulatory

Environment

Key Administrative Advisors

Key Administrative Advisors

People resources

Monetary resourcesTechnology resources

HR is Strategic Partner when: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 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 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.

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

Department Structure & Staff Competencies

HR Organizational ChartHR Staff Competencies

HR Organizational ChartHR Staff Competencies

HR CompetenciesHR Competencies

HR FacilitiesHR Facilities

Physical facilities of the HR department

Reception of job candidatesLegal and other employment noticesPrivate areas for interviews and

employee consultationsHR convenient to employeesEasy access to HR employee for

questions

Physical facilities of the HR department

Reception of job candidatesLegal and other employment noticesPrivate areas for interviews and

employee consultationsHR convenient to employeesEasy access to HR employee for

questions

HR Technology & Information ControlHR Technology &

Information ControlHRIS Information Management Processes

HRIS Information Management Processes

Key HR Risk AreasKey HR Risk Areas

Key HR Risk AreasKey HR Risk Areas

Workforce Planning & Employment

Workforce Planning & Employment

Workforce Needs DeterminationOrganizational DesignRecruiting ProgramsSelection ProcessContractor ManagementSuccession PlanningTurnover and Employee RelationsRegulations ComplianceFraud

Workforce Needs DeterminationOrganizational DesignRecruiting ProgramsSelection ProcessContractor ManagementSuccession PlanningTurnover and Employee RelationsRegulations ComplianceFraud

HR DevelopmentHR DevelopmentTraining Needs AssessmentNew Employee TrainingTechnical TrainingSupervisory TrainingTraining AssessmentEmployee CoachingPerformance AppraisalCounselingDiscipline

Training Needs AssessmentNew Employee TrainingTechnical TrainingSupervisory TrainingTraining AssessmentEmployee CoachingPerformance AppraisalCounselingDiscipline

Total RewardsTotal RewardsCompensation Philosophy Job DocumentationMarket AnalysisSalary Structure Development Job EvaluationSalary AdministrationFLSA Determination & OvertimeBenefits AdministrationPayroll

Compensation Philosophy Job DocumentationMarket AnalysisSalary Structure Development Job EvaluationSalary AdministrationFLSA Determination & OvertimeBenefits AdministrationPayroll

Employee & Labor Relations

Employee & Labor Relations

Policies and ProceduresEmployee Attitude SurveysEmployment RecordsEmployee Compliant and

Grievance ProcessLabor Relations

Policies and ProceduresEmployee Attitude SurveysEmployment RecordsEmployee Compliant and

Grievance ProcessLabor Relations

Risk ManagementRisk Management

Safety & HealthSafety & Health

Outsourcing and Co-sourcing

Outsourcing and Co-sourcing

Needs AssessmentVendor Selection ProcessVendor Management

Needs AssessmentVendor Selection ProcessVendor Management

KV ConsultingKV Consulting

Kelli W. Vito, SPHR, CCP

kelli.vito@kvconsulting.net

512-293-4678

Kelli W. Vito, SPHR, CCP

kelli.vito@kvconsulting.net

512-293-4678