Laurdan Associates, Inc.

Conducting Human Resource

Audits
HR AUDITING ACTION PLAN
2009 Laurdan Associates, Inc. All Rights Reserved.
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Laurdan Associates, Inc.
HR AUDITING ACTION PLAN
Initial Activities:
1. Determine the purpose and o!ectives o" the audit. #h$ are $ou conducting
an %R audit&
' (o identi"$ %R management strengths and )ea*nesses
' (o ensure legal and polic$ compliance
' In response to a discrimination charge or emplo$ment related
la)suit
' (o purchase +mplo$ment ,ractices Liailit$ Insurance -+,LI.
' As a part o" crisis management activities
'(o collect data and develop measurement standards to enchmar*
est practices
' As a part o" regular internal audit procedures
' As a part o" regular ris* management procedures
' As a part o" /0A activities
' 1ther reasons
2. Determine the scope o" the audit. #hat issues and areas )ill e audited&
' (he outcomes o" current %R management and emplo$ment
practices
' All issues and areas that a""ect %R management and the
organi2ation3s human capital
' 4peci"ic %R management and emplo$ment issues
' Legal and polic$ compliance related issues
' Issues directed $ the organi2ation3s attorne$s
5 ' Areas identi"ied $ $our +,LI carrier
' Areas per"ormed $ vendors and third parties
' 1ther areas and issues
6. Determine the organi2ational components to e audited. #ho )ill e audited&
' (he organi2ation as a single emplo$ing unit
' 4usidiaries and divisions
' Individual plants, stores, and o""ices
' Departments, product lines, pro"it centers, and cost centers
' Ac7uisitions
' 4uppliers, vendors, and third parties
' 1thers
2009 Laurdan Associates, Inc. All Rights Reserved.
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Laurdan Associates, Inc.
HR AUDITING ACTION PLAN
8. Determine )ho )ill conduct the audit. #ho )ill e part o" the audit team&
#ho )ill e audit team leader&
' (he %R Department
' 9our :;1 or auditing department
' Internal or e<ternal auditors
' 9our general counsel and=or emplo$ment attorne$
' 9our ris* manager
' An %R consultant
' 1ther
>. Determine the auditing tool to e used:
' (he +mplo$ment?Laor La) Audit@ -+LLAA.
' A la) "irm3s chec* list
' An internall$ developed audit
B. Determine costs and resources needed to per"orm the audit. :onsider:
' (he costs associated )ith purchasing an auditing tool vs.
developing an internal audit tool.
' 4ta"" salaries and e<penses related to conducting the audit, anal$2ing
the audit "indings, reporting the audit "indings, and implementing
corrective action.
' An$ legal and %R consulting e<pertise and e<penses associated )ith
conducting the audit, anal$2ing the audit "indings, and implementing
corrective action.
' An$ computer related costs associated )ith conducting the audit,
anal$2ing the audit "indings, and implementing corrective action.
' (he clerical and other costs associated )ith conducting the audit,
anal$2ing the audit "indings, reporting the audit "indings, and
implementing corrective action.
' 1verhead and other costs and resources associated )ith conducting the
audit, anal$2ing the audit "indings, reporting the audit "indings, and
implementing corrective action.
C. Determine audit team governance. :onsider:
' %o) o"ten )ill the team meet
' #hether the team )ill issue interim reports
' %o) )ill audit data and in"ormation e collected and stored
' #ho )ill have access to this data and in"ormation
' #ho )ill receive interim and "inal reports
2009 Laurdan Associates, Inc. All Rights Reserved.
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Laurdan Associates, Inc.
HR AUDITING ACTION PLAN
' #hether the auditing "indings e reported to emplo$ees
' #ho )ill e the spo*esperson "or the audit team
' #ho )ill e responsile "or implementing corrective measurers
' 1ther governance issues
(he Auditing -Assessment. ,rocess:
1. Deneral :omments: Al)a$s assume that the "indings o" $our %R audit or
assessments:
' #ill e discoverale
' #ill eventuall$ ecome common *no)ledge -there are ver$ "e)
secrets in most organi2ations.
' #ill raise emplo$ees3 e<pectations that $ou )ill address the
issues identi"ied
' #ill have a negative impact on emplo$ee relations i" $ou do not
share the audit "indings. E1(+: (his is particularl$ true o"
emplo$ee surve$s
2. Identi"$ *e$ organi2ational metrics. 1rgani2ations measure )hat the$
treasure. (o understand )hat is important, identi"$ )hat organi2ational issues,
e.g., total revenue, pro"itailit$, )or* "orce diversit$, or turnover, are eing
measured, monitored, and assessed.
6. Determine emplo$ment issues accountailit$. (hat is, )hat emplo$ment issues
are considered important enough that a manager3s per"ormance a""ects his=her
compensation&
1nce the Audit %as Feen :ompleted
1. As a general rule, prepare a )ritten report o" $our "indings
E1(+: I" the audit )as per"ormed at the direction o" counsel, "ollo) counsel3s
directions aout )hat in"ormation should e put in )riting and ho) such
in"ormation should e organi2ed
2. Guanti"$ $our results H 4tart )ith outcomes
6. Include an e<ecutive summar$
8. Identi"$ ris*s
>. Identi"$ and prioriti2e solutions to prolems identi"$. #here possile, "rame
$our solutions "rom a ottom line perspective, i.e., calculate the ene"its and
costs o" proposed solutions
B. +valuate and discuss the organi2ational, "inancial, and emplo$ee relations
impact o" action or inaction
2009 Laurdan Associates, Inc. All Rights Reserved.
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