Human Resources Audit

Background
A small, privately-held organization in Ohio was interested in positioning itself for growth. They needed to attract and retain some very specialized talent to continue their business success. Without this talent, the organization would not be able to maintain its past achievements and certainly could not expand its operations into new markets. It was time to focus on the workforce needs and issues while creating a top employer in the region.

Challenge
With minimal support to the Human Resources function, this client was challenged with where to start work on their people issues. Findley Davies recommended an audit which would review all current HR policies and practices to determine:

• Which "best practices" should be implemented to better position the organization to achieve its goals;
• Which practices, or lack of practices, might place the organization at risk for compliance or regulatory violations; and
• Process improvements that will support HR in providing the highest quality service to employees.

Solution
The HR audit began with a data and documentation request that required the Company to gather many of their policy manuals, benefit descriptions, and other employee communications. Our audit team then met with the HR and Finance staff to gain a better understanding of the current practices as well as identify other issues in the organization.

The Audit Report identified and prioritized recommendations in six key areas:

• General HR structure
• Policies and procedures
• Employee life cycle (attraction, recruitment, hiring, orientation, termination)
• Performance evaluation and training
• Compensation and benefits administration
• Employee communication

Results
The HR audit was delivered to the Company's management team as a detailed report and then presented to the executives in a summary format. It included a number of recommendations to improve their ability to attract and retain talent. For example, one recommendation was to develop a compensation and benefits philosophy. To support this initiative, we provided the organization with key questions for the management team to discuss. The questionnaire allowed stakeholders to examine their current pay and benefits practices and set a strategy to align those practices with the future business direction.

The client is going to incorporate some of the highest priorities into their business initiatives over the next couple years. One of their most immediate tasks will be to revise the employee handbook to include most of the recommended best practices.

The client's feelings were expressed in a simple email after our team's presentation to management. It said "Thank you for a great presentation last week. You hit a home run."

Print this Success Story