Auditing the HR

Function
Kelli W. Vito, SPHR, CCP

KV

Why Conduct an HR
Audit?
Routine

check-up (uncover any

conditions you may have and set
up a treatment plan)
Determine how you can best align
HR operations with organizational
goals
Ensure compliance with federal
and state regulations

Aspects of HR Audit

Strategic
Functions

Compliance
Issues

HR Emerging Issues
Executive

management ethics
Skyrocketing healthcare costs
HR outsourcing
Baby boomer exodus labor
shortage, aging and diverse
workforce
Knowledge work managing
knowledge workers

Typically Out of Scope

Payroll
Safety

and Health
Workers Compensation
Retirement Plans
Health Insurance Plans
Deferred Compensation Programs
Unemployment

HR Department Basics

HR Department Basics

Strategic Management
Strategic

Plan
Operational Plan
HR Performance Management
HR Budget
Legislative/Regulatory
Environment

Key Administrative
Advisors

People resources

Technology
resources

Monetary
resources

HR is Strategic Partner when:

HR

leader has/is:

strong

knowledge of HR roles and functions,

business strategy and operations
perceived as a credible advisor by his/her peers
and executive management.
Top

HR position is organizationally on the

same level as other program directors and
administrative directors
HR Dept. is viewed as approachable and
trusted to provide accurate information.

HR is Strategic Partner when:

HR

Dept. is part of a network of HR Depts.

in peer organizations that share
experiences, strategize regarding common
problems, and stay abreast of latest HR
trends and developments.
Strategic HR plan is closely linked to overall
strategic plan.
Performance assessment of HR programs,
including key metrics, is routinely
completed.

Department Structure &

Staff Competencies
HR

Organizational Chart
HR Staff Competencies

HR Competencies

HR Facilities
Physical

facilities of the HR
department
Reception of job candidates
Legal and other employment notices
Private areas for interviews and
employee consultations
HR convenient to employees
Easy access to HR employee for
questions

HR Technology &
Information Control
HRIS
Information

Management Processes

Key HR Risk Areas

Key HR Risk Areas

Workforce Planning &

Employment
Workforce

Needs Determination
Organizational Design
Recruiting Programs
Selection Process
Contractor Management
Succession Planning
Turnover and Employee Relations
Regulations Compliance
Fraud

HR Development
Training

Needs Assessment
New Employee Training
Technical Training
Supervisory Training
Training Assessment
Employee Coaching
Performance Appraisal
Counseling
Discipline

Total Rewards
Compensation

Philosophy
Job Documentation
Market Analysis
Salary Structure Development
Job Evaluation
Salary Administration
FLSA Determination & Overtime
Benefits Administration
Payroll

Employee & Labor

Relations
Policies

and Procedures
Employee Attitude Surveys
Employment Records
Employee Compliant and
Grievance Process
Labor Relations

Risk Management
Safety

& Health

Outsourcing and Cosourcing

Needs

Assessment
Vendor Selection Process
Vendor Management

KV Consulting
Kelli W. Vito, SPHR, CCP
kelli.vito@kvconsulting.n
et
512-293-4678