Why You Should Conduct An Internal HR Audit

Conducting an internal audit may not top the list of things HR professionals look forward to doing, but the importance of reviewing HR practices should not be understated or ignored. Simply put, an HR audit can be the savior that keeps your company out of the court room.

Think about this: On average, there are more than 450 employment lawsuits filed each week. The most common target is private employers with between 15 and 100 employees. While you may not be able to control if somebody files the suit, are you prepared to defend the company when someone does? With plaintiff attorneys on the offensive, joined by an administration and Department of Labor sympathetic to that cause, employers need to be ready to handle whatever is thrown their way.

But the reasoning behind internal HR audits extends further than lawsuit defense, for example:

– Audits are a sure way of making sure the best practices and HR metrics are being followed by the company
– They help with process improvement
– They can lead to fewer errors and complaints
– Can increase readiness for government investigations
– May lead to a reduction in EPLI (external insurance) coverage costs
– Build management support to come on board with HR practices
– Lead to a better use of employment law expenses

About the author

    Union Proof

    The UnionProof team at Projections believes that every company can be an employer of choice. Over 40 years of experience have taught us that connecting with employees is the clear path to creating successful companies that matter. We give our clients the ability to become an employer of choice by providing resources that are highly effective, simple to use, and that deliver behavioral change at a cultural level.