• Employers should follow or create a list of questions to guide the company’s HR audit.

Depending upon the human resources (HR) department’s (and the organization’s) activities and needs, what needs to be audited may vary. If there is no union, for example, labor management issues should not be a concern. The following list of questions is not meant to be comprehensive to every organization, but offers the types of questions that may be found in an HR audit.

• Management
  • Are HR goals in line with those of the organization?
  • Are workweeks identified and defined?
  • Are full-time and part-time hours defined?
  • Are shifts defined?
  • Is there open communication to and from the HR department?
• Hiring
  • Do job descriptions exist?
  • Are job descriptions up to date?
  • Are I-9 forms and acceptable documentation reviewed annually?
  • Are job openings offered to current employees?
  • Are applicant references checked?
  • Are turnover rates monitored?
  • Are selection processes used consistent to the Uniform Guidelines?
  • Are all applicants required to fill out and sign an application form?
  • Are applicants asked to voluntarily identify affirmative action information
  • If applicable, do application forms identify that the employment relationship at the organization is “at-will”?
  • Do employment applications refrain from requesting inappropriate information?
  • Are independent contractors accurately identified?
  • If the organization has a qualifying federal contract, is there an affirmative action plan?
  • Are all new hires reported to the state new-hire reporting agency?
  • Are I-9s and medical information kept separately from personnel files?
  • Do new employees fill out W-4 forms?
  • Are W-4 forms sent to the Internal Revenue Service (IRS)?
• New employees
  • Are workplace policies in place?
  • Are policies communicated?
  • Are policies enforced?
  • Is there an employee handbook?
  • Is the employee handbook specific to the workplace?
  • Do employee orientations take place?
  • Are employees trained on policies and work rules?
  • Are employees trained on discrimination issues?
• Wages and hours
  • Are compensation levels monitored and reviewed?
  • Are employees correctly designated as exempt or nonexempt per the Fair Labor Standards Act (FLSA)?
  • Is there a formal pay structure?
  • Is the compensation structure reviewed regularly?
  • Is working time documented?
  • Are structures developed for paid time off (vacation, holidays, etc.)?
  • Are non-exempt employees compensated at least one and one-half times the hourly wage for any hours worked beyond 40 per week?
  • Is the compensation plan communicated to all employees?
  • Are appropriate payroll withholdings performed?
• Benefits
  • Are employees informed about company benefits?
  • Are Summary Plan Descriptions (SPDs) provided to plan participants?
  • Are general COBRA notices provided to plan participants?
  • Are employees allowed up to 12 weeks of leave under the Family and Medical Leave Act (FMLA), or 26 weeks to care for an injured servicemember?
  • Are plan documents in compliance with the Employee Retirement Income Security Act?
  • Are supervisors and managers trained to report employee absences of more than three days to HR for FMLA purposes?
  • If there is a health care plan, is protected health information kept private?
  • Are all Form 5500s completed and reported?
• Employee relations
  • Is there a system for performance evaluation?
  • Does the system check for effectiveness of the evaluation?
  • Is quality and quantity of work evaluated?
  • Is performance tied to compensation?
  • Are workplace policies flexible?
  • Are disciplinary actions for violations of workplace policies flexible?
  • Is there a process for employees to lodge complaints?
  • Are there a variety of individuals to whom employees may lodge complaints (e.g., supervisor, HR representative)?
• Safety and security
  • Are safety hazards reported to the appropriate personnel?
  • Are workplace accidents, near-misses, injuries, and illness reported and investigated?
  • Are measures in place to prevent intruders from entering the grounds or buildings?
  • Is bright, effective lighting installed indoors and outdoors?
  • Are measures in place (access badges, traffic control, etc.) to keep unauthorized persons from entering the facility through normal entrances?
  • Is there a reliable response system when an alarm is triggered?
  • Are employees encouraged to promptly report incidents?
  • Are employees encouraged to suggest ways to reduce or eliminate risks or hazards?
  • Are structures readily accessible to disabled employees?
  • Are minors prohibited from performing hazardous work?
• Discrimination and employee protections
  • Are employees trained on discrimination issues?
  • Are supervisors and managers trained in anti-discriminatory practices?
  • Are employment practices in line with the various anti-discrimination laws?
  • Are minors prohibited from working more than the hours allowed by the FLSA or state laws?
  • Are effective policies in place that prohibit retaliation against employees who exercise employee rights?
• Workers’ compensation
  • Are injuries/incidents investigated?
  • Is follow-up remediation performed where appropriate?
  • Is regular contact made with employees out on lost time?
  • Are return-to-work programs checked for effectiveness?
  • Is contact made with medical providers?
  • Are insurance premiums and competitive quotes reviewed on a periodic basis?
  • Is the workplace environment maintained with safety in mind?
  • Are state (new and existing) requirements monitored?
• Employee separation
  • Do exit interviews take place?
  • Are final paychecks provided on time?
• Recordkeeping and other documentation
  • Are personnel files current?
  • Are all appropriate labor posters displayed in a conspicuous place?
  • Are documents regarding employees kept for the required duration?