HR Self-Audit
Holly Perryman, President and Human Resources Consultant at HR Managed, LLC
When I start working with new clients, their biggest fear is that they have run afoul of the law and don’t even know it. So, we often start with an HR audit which digs down into all the nitty-gritty of their practices, policies, and procedures. That takes time and knowledge and is well worth the effort. I would rather help a client find those issues and fix them. The potential alternative is someone else (like a plaintiff attorney) finds those issues and resolution is not so simple.
If you are not ready for a deep dive HR audit, I recommend that you conduct a basic self-audit. These are items that I refer to as easy compliance. This not only ensures some basic compliance, but it can also save time when you move into a larger audit.
Here are some simple things employers can do to self-audit:
- Get new employment posters. Make it a habit to update employment posters every January 1. Something has usually changed and this shows a good faith effort to stay compliant. If you are in a brick and mortar building, the standard posters in the breakroom is the way to go. If you have remote employees who are in your building less than 3 to 4 times a month, you will need to add electronic posters to an internal website or shared drive. If you have employees in various states, you will need a poster for each state. And don’t forget the federal all-in-one poster as well.
- Check out those employee files. I always ask clients if they have an updated file for each employee. Their answers vary widely but are usually some version of “maybe”, “we think so”, or “not sure”. Get a list of active employees from payroll and check to see if you have an employee file for each person. Then see what is inside. You should have a standard list of documents that make up every file (original application, offer letter, I9, W4, etc.) If you are missing a file, then you have some work to do to figure out where it went (employee files should never leave HR!) or assemble (and potentially recreate or resign some documents) a new file. Create a memo to the file to explain that you have done a file audit, what you found in that audit, and how you have remedied missing documents. If you find that you are missing an I-9 or other required documents with a missed deadline, consult an HR professional or attorney for next steps.
- Clean up and purge the employee files. Medical and personal documents should be kept separate from the main personnel file. The medical and personal file contains documents that are not job related. This could be a doctor’s note, beneficiary forms, or a child support withholding order. Pull those documents out of the main personnel folder and place them in a separate folder, one for each employee. Then on to your terminated employee files. A best practice is to keep term files for 7 full years from the date of termination so all statutes of limitations have passed. Files that are at 8+ years old need to be purged.
- Read the handbook. When is the last time you read your entire employee handbook with pen in hand to check for needed updates? If it has been more than 2 years, settle in with a cup of coffee and start reading. Your business changes and the employee handbook has to keep up. Considering all the changes of the past 3 years, you are guaranteed to have some updates. You may need to create new work-from-home or hybrid policies, remove social distancing language, and check for new state and federal employment laws. Also, consider issues that have come up in the past few years that were a challenge to manage. Do you need to add a policy or clarifying language to ensure a smoother road in the future?
- Look for Trends. Go back over conversations with employees, disciplinary records, and exit interviews (You ARE doing exit interviews, right?) from the past year. What trends do you see? If you have not addressed those trends this would be a good time to close the gap. That could mean training with employees, working with supervisors on communication skills, or preparing regular email reminders, or a combination of various approaches. Trends are telling you something important so don’t miss the message!
Feel like you need a bit more than the steps above?
Contact us and let's talk about an HR audit that will ensure compliance, assist with best practices, and have your business happily humming along.







