Understanding the Importance of the HR Compliance Audit

Posted by Employer Flexible on July 29, 2019
Employer Flexible

To ensure long-term success, companies need to become as efficient and productive as possible, while still retaining the integrity of the company values. Since every organization is comprised of its workers, it only stands to reason that the HR department is the backbone of success. It’s the HR department’s job to not only help bring on engaged staff, but to quickly resolve issues as they develop. That role includes making sure that the HR department is in compliance.

What is the Meaning of HR Compliance?

There are several layers of HR compliance that companies need to be aware of. The first — and most important — is the level of compliance pertaining to federal laws. The federal government has put forth many laws that govern employers in all 50 states. These laws are in place to enable fair and safe working environments for all employees. There also exist state laws for employers. Again, these are in place to ensure a fair and safe workplace for all. Next, there are certain oversight organizations, such as OSHA, that help employers and employees who have to handle hazardous materials at work. Finally, there are the individual company rules and policies. While these fall under the umbrella of federal and state laws, they still must be complied with by the HR department.

The Importance of HR Compliance Audits

Given the sheer number of laws, rules, regulations and policies that must be complied with, it’s only common sense that some things may fall through the cracks every now and then. Whenever you’re dealing with people, issues and situations will arise that are tricky to handle. The importance of HR compliance audits is borne out when a precedence is set so that a challenging situation can be dealt with in an expedient manner to ensure compliance with all governing bodies. 

How HR Compliance Audits Help Companies

HR compliance audits help companies in a number of ways. The first and perhaps most apparent way is protection against litigation. If a company and its HR department can demonstrate that it undergoes regular HR compliance audits, and that all polices have been followed, the chances for a negative legal outcome are drastically reduced. HR compliance audits are also beneficial to companies because they help to circumvent any potential problems that haven’t yet arisen. HR compliance audits can act as very effective troubleshooting processes that enable companies to essentially “shore up” discrepancies or holes in their company policies. Finally, HR compliance audits are a tremendous help for newer HR staff. They allow new staff members to go through the entire steps of the HR process in a shortened period of time instead of having to wait until a particular situation comes up organically.

HR compliance audits can be done entirely internally, or companies can opt to hire outside companies to conduct the HR audit. In many cases, an external review of HR compliance procedures is much more efficient and enlightening than an internal review, simply because of time constraints and because of the objective nature of an external HR compliance audit. Contact us today to find out how Employer Flexible can help your organization.

 

Topics: compliance, Human Resources