Human Resources Audits The Human Resources (HR) Audit is a process of examining policies, procedures, documentation, systems, and

practices with respect to an organizations HR functions. The purpose of the audit is to re eal the strengths and wea!nesses in the nonprofits human resources system, and any issues needing resolution. The audit wor!s "est when the focus is on analyzing and impro ing the HR function in the organization. The audit itself is a diagnostic tool, not a prescripti e instrument. #t will help you identify what you are missing or need to impro e, "ut it cant tell you what you need to do to address these issues. #t is most useful when an organization is ready to act on the findings, and to e ol e its HR function to a le el where its full potential to support the organizations mission and o"$ecti es can "e realized. Who should conduct the audit? The team that is responsi"le for the audit should represent a cross%section of the organizations staff, including line staff, middle and upper management, and those responsi"le for HR functions. How should it be conducted? The audit process consists of a series of &uestions co ering the eight primary components of the HR function' Roles, head count, and HR information systems (HR#() Recruitment )ocumentation Training, de elopment, and career management *ompensation and "enefits +erformance measurement and e aluation Termination and transition ,egal issues and personnel policies The team wor!s to collect information to answer the HR audit &uestions in each of these categories. The focus is on how these acti ities and tas!s are actually performed in the organization. The first step is to collect all the pertinent information. The process of getting information, in and of itself, can "e &uite informati e. How are needed improvements identified? -nce information is gathered, the audit team re iews each ma$or section and notes disparities "etween paper (what we thin! or say we do) and practice (what we actually do, as re ealed "y the answers to the audit &uestions). This can then "e compared to "est practice (what we should do to "est support our organizations mission). A cautionary note: .inding out what is insufficient and inade&uate is the first step toward impro ement. #f deficiencies are identified, it is important to ta!e steps to correct those deficiencies. -rganizations should ta!e that first step only when they are ready to act on the findings, and to ma!e necessary impro ements in their HR s!ills, processes,

and systems. How is follow-up and correction done? #mpro ing the HR system ta!es some time. A wor!plan / with a timeline, accounta"ility, and deli era"les / should "e created after the team re iews the completed audit and identifies areas where impro ement is needed. .ollow%up and re iew should "e a regular management function, performed on an ongoing "asis. Roles, Head Count, & Human Resource nformation !ystems "HR !# How many employees are currently on staff0 How many employees are' o Regular o +ro"ationary o Temporary o .ull Time o +art Time o 1xempt o 2on%1xempt 3hat is the definition of a part%time employee0 (i.e., 3hat is the maximum num"er of hours an employee can wor! to "e considered part%time0) 3hat is the minimum num"er of hours an employee has to wor! to "e considered full%time0 How long is the pro"ationary period0 Are employees aware of their status0 How long can an employee "e temporary0 How many employees ha e super isory responsi"ility0 Are there currently up%to%date $o" descriptions for all employees0 #f not, which ones dont ha e descriptions0 Are independent contractors used0 #f so, how many are "eing used0 And, for what functions0 #s the 45 point test for #ndependent *onsultants "eing used for classification0 Ha e issues related to classification of employees "een raised0 Recruitment How did the wor! force get to "e the current size0 3hat are some of your organizations future needs for personnel0 3hat are the procedures for hiring in your organization0 3hat recruitment sources are used0 (e.g., ad ertisements, referrals from other agencies, personal contacts) Are current employees gi en appropriate consideration for promotion or lateral position changes0 3ho does the preliminary screening of candidates0 3ho selects candidates for inter iews0 #s training pro ided for those who conduct inter iews0 How is the recruitment, screening, and selection process documented0 3hat is the inter iew process that is used (e.g., indi idual, se&uential, panel)0

3ho holds final authority to hire0 3ho chec!s references0 How are the reference chec!s documented0 3ho ma!es the offer of employment0 3here is the hiring paperwor! generated0 3ho negotiates compensation pac!ages0 ,ist the practices you "elie e are uni&ue to your organization. 3hat is the turno er rate (percent of employees lea ing each year) in your organization0 Has this changed o er time0 3ho gi es references for former employees0

$ocumentation 3here and with whom are the personnel files currently held0 3hat documents are held in personnel files0 How are the following documented "y your organization0 o Hiring' Application, #nter iewing, and Reference *hec!s o *ompensation and 6enefits o Transitions o +aid Time -ff o Training o )iscipline o 3or! History o 3or! Assignments o (ignificant accomplishments o 1mergency contact information o +erformance e aluation and performance management o Termination How long are files held and where are they stored after employees lea e0 3hat is the interface "etween HR and .inance0 #s a payroll ser ice used, and if so, which one0 )oes the payroll ser ice pro ide all go ernmental employment filings0 #s there training of managers and employees a"out personnel files, and policies and procedures for accessing them0 How is +aid Time -ff documented0 3hen re&uests for information are made to your organization, who fills the re&uest0 #s an HR#( system "eing used, and if so, which one0 %rainin&, $evelopment and Career 'ana&ement 3ho is responsi"le for new employee orientation0 3hat are the elements of the new employee orientation program0 3here and to whom do new employees go when they ha e &uestions a"out your organization or their $o"s0 #s there a formal training program for employees and managers0 #f so, please descri"e it.

3hat training and de elopment initiati es ha e occurred in your organization0 How are managers and super isors trained and prepared for their roles0 3hat is the a erage length of time an employee stays with your organization0 )oes this ary "y position type0 How much does your organization spend annually (in total and per employee) on employee training and de elopment0 )oes this ary "y position type0

Compensation and (enefits (asic Compensation )uestions #s there a formal compensation program0 How are wages set0 Are formal salary ranges set0 #f formal salary ranges are set, are they made pu"lic to employees0 How are $o"s rated0 How fre&uently are $o"s re%e aluated or updated0 Are any salary sur eys used0 #f so, which ones0 Are pay ranges re ised as a result of these sur eys0 How fre&uently0 3ho in your organization (what position) administers the compensation program0 Are *-,As gi en, and if so what is the "asis for the *-,A0 Are merit increases gi en, and if so, are they integrated with performance e aluation0 #s there a "onus system, and if so how is it structured0 How is the compensation program and total compensation pac!age communicated to employees0 3hat are the 7cultural issues8 or "eliefs related to compensation in your organization0 How is employee communication regarding compensation and "enefits deli ered in your organization0 Health and Welfare (enefits )escri"e the health insurance program pro ided "y your organization. Are dependents co ered, and if so, in part or in full0 Are domestic partners co ered0 3hat are the eligi"ility re&uirements for health insurance and other "enefits0 3hich of the following health and wellness "enefits are offered, and what are the limits and re&uirements for co erage0 o )ental o 9ision o )isa"ility o 1mployee Assistance +rogram o ,ife #nsurance o -ther wellness "enefits o .lex "enefit plan o -ther "enefits

*ension and Retirement 3hat is the pension or retirement plan0 3hat is the esting period0 *an employees contri"ute0 *an pretax dollars "e put into some form of deferment plan0 +aid Time -ff 3hat holidays are paid and who is eligi"le for them0 #s there a +T- system, or is it split "etween acation and sic! lea e0 #f it is straight +T-, what are the rates of accrual and caps0 3hat is the acation schedule, and how is it earned0 3hat is the eligi"ility re&uirement for acation0 #s there a cap to limit the amount of acation accrued0 Are employees permitted to su"stitute sic! lea e for acation0 How is unused accrued acation treated0 *an employees contri"ute sic! lea e to other employees, and if so, what are the limits0 *erformance 'ana&ement And +valuation )escri"e the past and current performance appraisal system in your organization. #f a performance appraisal instrument is used, please attach a copy. (#f the instrument differs "y position, please attach all instruments.) 3hat type of process is used (:;<o=super isor only=peer e aluation=outcome)0 3hat type of training is used in relationship to performance e aluation0 3hat is the role of the super isor>manager in performance appraisal0 3hat is the focus of performance management in your organization0 How often and consistently is the process used0 %ermination And %ransition #s your organization an 7at%will8 employer0 3hat other causes or conditions of termination of employment exists0 3hat procedures are used for o Termination for *ause o ?o" *losure o Resignation 3hat le el of appro al is needed "efore a termination can occur0 #s there any formal chec!list or legal re iew prior to termination0 Are exit inter iews performed for all employees who lea e0 3hat documentation is re&uired for all employee transitions0 How are references handled in your organization0 3ho is responsi"le for internal communications regarding difficult terminations0 (i.e., communicating the termination to other employees.) ,e&al ssues - *ersonnel *olicies To your !nowledge, are all employees appropriately classified0 3hat personnel policies are currently "eing used0 (+lease attach a copy) 3hen was the last time these policies were re iewed and updated0 #s there a disparity "etween policies and practices0

3ho has organizational responsi"ility for legal or employment &uestions0 #s harassment training regularly pro ided0 How are employee grie ances dealt with0