HR Auditing: Identifying and Managing Key Risks
HR audits are designed to help your organization focus its attention on its human resource management practices, policies, procedures, processes, and outcomes by providing you with a structured and systematic series of questions about key compliance, risk management, internal auditing, and human resource management issues. As a process, HR audits are designed to help your organization identify potential and actual problem areas, help assess the effectiveness of current HR management activities, help assess weaknesses in HR internal control processes, and help assess human capital strategic and compliance related risks. HR audits should additionally provide suggestions for corrective action.
Importantly, HR audits should consider human capital related risks and opportunities from an enterprise risk management (ERM) perspective. That is, your HR Audits should take a holistic approach in assessing human capital risks and attempt to indicate the interrelationships and interactions between HR and other management and organizational issues.
Recognizing that no two employers are alike and that the practices, policies, and processes that may be appropriate and effective for multinational corporations may not be appropriate for small and medium size companies or non-profits, your HR audit activities should be designed to help your organization develop and tailor employment practices, policies, procedures, and processes to meet your specific needs. Your HR audit activities should first provide your organization with the "right" questions to ask about various employment practices issues; then helps you determine the optimal answer for your organization.
The HR audit areas in this program provide you with the right questions to ask about your human resource management activities. More importantly, it provides you with a positive method to identify and take corrective measures.
Why should you attend:
Numerous studies have identified the growing critical importance of human capital. Human capital determines that long term success of an organization. Human capital-and its management-- also represent significant liabilities. Managing this risk has become a critical activity for most organizations, and one that represents important opportunities.
Human capital risks can significantly threaten an organization and are routinely recognized for their negative impact on an organization. At the same time these risks are noted as "one of the risks least effectively managed." As noted, they are identified as risks that when improperly managed create significant strategic, financial, operational, and reputational risks. These risks threaten the management and sustainability of the organization and reduce it value.
As a result, organizations are bringing advanced techniques to the management of their human resources--this includes the use of HR auditing techniques. No longer merely checklists of doīs and donīts, HR audits have become a continuous, sustainable, comprehensive audit activity that assesses the governance, compliance, and management of the organizationīs human resources management practices, liabilities, and potential opportunities. HR audits increasing provide assurance that risks are properly identified and managed, that HR activities are aligned with organizational objectives, and that compliance and governance requirements are being met.
Many of our current management models were based on manufacturing - turning materials into products to sell. The environments were commonly production lines with expensive machinery and individuals had to be "at work" to produce.
This workshop reviews the current use of HR audits, reviews HR audit techniques, and discusses how HR Audits can be used to help the organization reduce risks and seize potential opportunities.
Day 1 Schedule
Lecture 1: Introduction to HR Audits
Background of HR audits
Evolution of HR audits
Developing an HR audit plan
Identifying key HR audit issues
Exercise: Pre-HR Audit Questionnaire
Lecture 2: Assessing Human Capital Risks
Discussion of risk management issues
Determining human capital risks
Developing Key Risk Indicators (KRIs)
Discussion of human capital risk mitigation and risk appetite
Exercise: The Employment Practices Liability Risk Assessment Tool
Exercise: Mapping capital human risks
Lecture 3: Developing HR Metrics
Discussion of HR metrics
Determining relevant human capital measures
Developing Key Performance Indicators (KPIs)
Developing HR audit dashboard
Lecture 4: HR Audit Model
Discussion of the critical components of an HR audit
Discussion of internal controls
Discussion of internal audit activities
Exercise: The HR Audit Worksheet
Day 2 Schedule
Lecture 1: Assessing Strategic Alignment
Assessing of the value of human capital
Assessing your employment brand
Assessing work force needs
Assessing employee commitment and engagement
Discussion of employee surveys to validate audit findings
Exercise: Mapping employee commitment
Lecture 2: Assessing HR Management Related Documents
Assessing employment posters and notices
Assessing job descriptions
Assessing employee application and other hiring forms
Assessing employee files
Discussion of employee handbooks
Exercise: Review Survey Report on Employee Handbook Policies and Practices
Lecture 3: Assessing HR Management Processes and Practices
Assessing the recruitment, selection and hiring process
Assessing performance management
Assessing employee relations
Assessing the discipline and termination process
Discussion of Technology
Lecture 4: Practical Applications of HR Audits
Indentifying to HR audit stakeholders
Discussion of HR audits for vendors, suppliers, and contractors
Discussion of HR audits in mergers and acquisitions
Discussion reporting and implementing HR audit results
Ronald L. Adler
President, Laurdan Associates Inc.
Ronald L. Adler, president of Laurdan Associates Inc. has 42 years of HR consulting experience and has served as a consulting expert on work force, workplace, and HR management issues for The Wall Street Journal, HRMagazine, and other publications and newspapers across the country. Mr. Adlerīs research findings have been used by the Federal Reserve Board, the EEOC, the National Conference of State Legislatures, the National Federation of Independent Business (NFIB), insurers, and international organizations.