An internal HR audit has the same goal as any other audit: to scrutinize business operations to ensure best practices are in place and consistently applied. Of course, an HR audit is exclusively focused on HR practices, offering an opportunity to identify deficiencies in employment policies and their application, employment-related documentation, and compliance with relevant employment law. Proactively auditing HR practices is the most effective method of addressing small issues before they have a chance to take up time and money that would be better spent elsewhere.
If you haven’t conducted a full review within the last couple of years, let this guide serve as a wake-up call to making an audit part of your Engagement Plan for the coming year.
The job of a Human Resources, Employee Relations or Labor Relations professional is often reactive: investigating employee relations issues, responding to a compliance violation, or searching through poorly maintained records when a legal claim is made. However, it is far more satisfying to take a proactive approach and address small problems before they become major headaches. HR auditing sets businesses up for success, establishing basic HR practices. Audits systematically review whether and how policies are being applied, ensuring consistency among staff members and compliance with legal and regulatory requirements.
Other benefits of HR audits include:
• Company-wide adoption of best practices
• Identification of potential processes improvements
• Reduction of errors and employee complaints
• Proactive preparation for government investigations
• Reduced likelihood of fines for noncompliance with employment regulations
• Possible reduction in insurance expenses
• Improved utilization of legal budgets
• Increased buy-in from managers regarding HR policies and practices
• Reduced likelihood of successful union organizing
Launching an HR audit is a major endeavor, and it is important to secure the appropriate resources. These subject matter experts are particularly helpful:
Legal Counsel – The results of an audit can be discoverable in future legal proceedings. Consult legal counsel for advice on protecting the business.
Department Leaders – Enlisting the help of department leaders saves time. They can point you towards the relevant records and explain how policies are applied from day to day.
Once your team is assembled, outline the areas you will audit and develop a list of audit questions. Common inquiries for HR audits include the following…
Creating a highly engaged workforce has become a vital aspect of business success. Statistically, employee engagement has been poor in the last few years. According to recent data from Gallup, nearly 70 percent of the American workforce is disengaged; around the world it’s worse, with only 15 percent of workers engaged. When employee engagement is low, it can harbor dissatisfaction in employees, making them susceptible to reduced productivity, turnover and an increased presence of labor unions. Therefore, all organizations must have a system for checking that their labor and employment practices are conducive to a highly engaged workforce.
Our comprehensive guide to conducting an HR Audit can help you form a plan of action for making sure that your company is on the right track. Here are five incredibly easy (and practical) first steps you can take to develop workforce policies that promote improved employee engagement:
The journey to greater employee engagement can be a difficult one, but it is easier to manage with a clear roadmap. This often starts before an individual actually begins work — in the pre-hire stage of their experience. When a company’s brand reputation emphasizes a positive culture where employees feel valued, it sets things up for long-term success.
What you can do now: The applicant tracking system and way candidates are treated throughout the interview, hiring and on boarding process makes a huge difference. Use the audit guide to help you to identify any areas that need to be corrected.
All human resource teams must ensure that employees are receiving the best possible compensation and benefits in order to remain competitive. The 2017 PayScale Compensation Best Practices Report indicated that 32 percent of top performing companies have changed their compensation strategies as a result of employee engagement feedback. More employers are actively listening to what their employees are asking for and taking steps to ensure they get what they need.
What you can do now: Take the time to conduct a brief survey of your employees to find out if your compensation program needs improvement.
In today’s business world, everything from customer data to employee information is stored in a digital format. This often includes the use of scheduling, payroll, performance and benefit platforms. Ongoing monitoring is needed to ensure that data is accurate and up-to-date and that people are paid correctly.
What you can do now: Your organization should verify that all information systems are secure from information breaches, and accessible and easy-to-use for employees. A third-party auditing firm can often pinpoint potential issues.
Working conditions make a big difference in how employees view their employer. There are too many toxic conditions invading otherwise good companies. The aspects that human resources can control include: having clearly written policies to deal with things like employee grievances, anti-bullying, drug use, union card signing, and more.
What you can do now: Review employee handbooks and update labor law posters in employee break areas. For some objective feedback, ask employees during exit interviews what the company can do better.
When employees are recognized for their efforts at work, they tend to stay more engaged in their careers. Having a professional development program to guide employees through the various stages of career growth is one step in the right direction.
What you can do now: Review job types with management and create structured learning paths for each department.
By following this checklist , any human resource team can help to elevate employee engagement, productivity, knowledge and morale.
Looking For More? Download our FREE Guide to conducting a Labor & Employment Audit to help you make your workplace more positive & productive!
Contrary to popular belief, artificial intelligence, or AI, is no longer relegated to science fiction novels and “think pieces” on future innovations. In reality, AI has already arrived and is much more pervasive than most people realize. For HR professionals, the technology is already providing dividends in the areas of recruiting, onboarding, and training procedures by significantly streamlining operations.
As useful as AI is already proving to be, it is already clear that it’s best utilized as an accompaniment to people in the workplace and not a replacement, allowing employees to perform their responsibilities in a much more efficient and effective manner. Despite how the vocal naysayers are reacting, AI’s negative impact on a workforce itself will be negligible, but could instead increase the overall health of many organizations. This is evidenced in the banking industry, where ATMs could have caused job losses but instead streamlined operations and reduced costs, allowing many banks to add staffed locations. This created a positive situation for workers and customers alike
That said, many union leaders are concerned that automation means workers will no longer have the ability to demand higher wages, which will in turn continue the decline in union membership. In the private sector today, just 6.4% of workers belong to a union. Contrast that with 1983, when about 17% of private-sector workers were in a union.
The typical HR professional is being pulled in a thousand different directions at any given moment. In fact, no matter the length of the work day or size of the staff, the work always seems to continue to pile up. This unending accumulation of duties is exactly where AI can positively impact the workplace. Through various platforms, AI automates the bulk of the tedious responsibilities that are important to the organization but a tremendous expenditure of time and effort as well.
In terms of recruiting, an AI-based suite can administer any and all social media efforts, email correspondence and even interview scheduling with an interface that makes it difficult to tell if the communication is coming from a human or machine. Furthermore, all testing and training for onboarding and existing employees can be personalized down to the individual level to adhere to the training method that best fits a particular person. All of this functionality can be synced with current CRM and ERP systems to further streamline the entire process.
Like most technologies, AI will only continue to grow and evolve in the future. As far as impact on overall operations and a workforce are concerned, it will work alongside humans to make them more efficient in their responsibilities. While specific tasks like email correspondence might be automated, it will always be under the watching eye of a human being.
In other words, while on the big screen AI might still enslave humanity in a zombie-like state of perpetual anguish, in reality, it will simply permit us to excel and reach levels we otherwise would never reach. That might not be as dramatic as the Hollywood version, but, at least for HR professionals, AI will undoubtedly be a welcome tool to significantly enhance productivity.
Human resources professionals know that union organizing presents a variety of complex challenges, and many dread their labor relations responsibilities. After all, the process of educating employees on the drawbacks of voting in a union can be taxing, and participating in contract negotiations is nearly always stressful.
However, there’s another way to look at labor relations: as a unique opportunity to develop strong skills in leadership, decision-making, communication, and collaboration through experience that can’t be gained any other way. In fact, some C-suite HR leaders credit their labor relations work as their most important development opportunity, giving them the extra boost in skills they needed to reach the top of their career ladders.
Increased Understanding of Business Strategies
The cost of labor is one of the highest expenses in any organization, and maximizing the use of people to produce the company’s goods and services is a core function of human resources. However, many HR professionals find themselves bogged down in the details of the HR function: managing payroll, performance, and interpersonal conflicts, for example.
For unionized companies, collective bargaining agreements bring focus back to the purpose of HR, as these contracts essentially boil down to an exchange of quality labor for specific compensation and working conditions. Experience with contract negotiations gives HR staff special insight into their larger role, as well as an improved understanding of business strategies that will optimize the company’s success.
When word gets around that there’s interest in unionizing, HR personnel often limit their union avoidance activities to correcting issues that have cropped up with managers’ behavior, application of policies, and similar matters. However, to be truly effective in keeping an organization union-free, smart HR professionals examine all aspects of the business. From basic operations to compensation rates for skilled workers, they look into every available possibility for improving the work environment. This offers an entirely new set of skills to HR staff. Instead of restricting their work to issues directly in their span of control, they learn to develop larger, more integrated solutions that benefit the business as a whole.
Working in HR means you’re regularly dropped in the middle of intense, highly emotional situations. The best HR professionals can handle the stress of these encounters calmly, keeping their own feelings in check while de-escalating tension between others. When labor issues crop up, they tend to be some of the most intense that any HR staff member faces. Greater exposure to labor relations means more practice with this sort of intensity. Before long, you’ll discover that staying composed is second nature for you – an important trait in any executive.
The foundation of any union avoidance strategy is increased communication, and when a union is already present, collaboration is key to maintaining a productive working environment. Working on labor relations issues is an opportunity to become more effective in both communication and collaboration – skills that are very much on display in leaders.
Of course, not every position has exposure to unions and their related concerns, but you can still work toward improving your skills. Participating in high-quality training such as the Union Proof Certification is an excellent first step in taking your career to the next level.
Crisis is a part of growth, and could even be said to drive the world of commerce and business, as a crisis most often represents opportunity. Effective communication is essential to keep crisis manageable and prevent the escalation of crisis into conflict. Conflict, on the other hand, is bad for business, can be damaging to employees and can contribute to what human resources professionals refer to as a “toxic” working environment.
When teams work through a crisis and negotiate meaning and progress together in the workplace, they can accomplish goals, and promote the type of creative thinking and action that lead to innovation, prevent workplace injury, and create greater productivity.
Working with crisis models and communication protocols ahead of time, or on a regular basis, is business and workplace best practice.
Learning successful negotiation in the workplace means beginning to communicate in ways that are effective in achieving shared corporate goals. We negotiate within our companies every day — when we speak in meetings, when we write or respond to memos, when we “talk shop” on our breaks, and when we write or distribute written materials in the workplace.
Successful negotiation shows itself in action that demonstrates immediate corrective action that creates positive change. Establish what a properly managed crisis looks like for your company. This measure of success can take many forms – the number of team members involved, the length of time it takes to resolve the crisis… even the finanical impact of the crisis.
Successful crisis resolution protocols require sincere acknowledgment of the perspectives and unique voices of everyone affected by the workplace crisis. When sending out newsletters, briefs, tweets, e-mails, letters or press releases, consider as many perspectives as possible:
Please note: Within a company with no union employees, similar crisis, negotiation and conflicts occur over work conditions, expectations and misunderstandings of communications. All of the strategies discussed here are effective for workplaces that are either unionized and union-free.
“The medium is the message,” declared media guru Marshall McLuhan in 1977. His cryptic message is still a topic of animated discussion, but the truth is, every successful company and corporation must have a strong “mixed medium” communication system — a system of human intelligence and human resources, combined with a video, online and hard copy communications.
Demonstrating in a crisis that the company is prepared to use a variety of mediums to connect with key players can be a powerful way to de-escalate a crisis situation.
There are a variety of “stage”-focused models of crisis development that illustrate levels of escalation and can help you guide effective response at each crisis stage. There are five stage models, seven stage models and a variety of other models recommended by academics and crisis prevention experts that are useful models for organizations to use to guide crisis intervention and communication protocols.
Knowing that there are various models to illustrate stages of crisis intervention can be an important factor in successful resolution of any type of workplace conflict. Learning new models allows you to craft a custom strategy that works for your workplace and your unique culture. Reviewing these differing approaches encourages innovative and creative approaches to crisis prevention.
When a strike is possible, a signal is sent by all parties involved that negotiations have “failed” and “communication is no longer effective.” Moving quickly past that very real situation is paramount to workplace success. All commercial enterprises, regardless of industry and size, thrive on effective ongoing communications.
Re-establishing communication as quickly as possible is essential. A strike in progress affects all key players, families and stakeholders, as well as the broader community.
Agent provocateurs and saboteurs are not storybook characters — they are titles for people involved in a workplace for the purpose of damaging the company. Whether they are people in an employee, executive or union role, they have can a destructive impact on negotiations, communication systems, and overall company success. A well-trained human resources team reduces the chances that these type of people are hired: They identify employees that are present for destructive purposes, and remove them strategically and immediately.
This kind of crisis can be avoided with attention to hiring practices. Communicating with the remaining members of a team when such an employee is removed is vital.
Managing the media should be an ongoing shared corporate goal and protocols for media communications should be in place before a workplace crisis degrades into conflict. This is true during union organizing, particularly when the union undertakes a “corporate campaign,” working to damage the company’s reputation or business. Crisis prevention should be a primary communications goal, and keeping in regular contact with local media is paramount. Regular press releases are essential. This regular contact facilitates communication during any type of workplace crisis, negotiation or conflict.
Managing crisis in the workplace often involves many people, players in many roles and stakeholders. It also involves families, friends, and neighbors. Creative approaches to establishing your unique “stage”-focused model as well as ongoing development of innovative strategies are keys to long-term crisis prevention and successful intervention in the workplace.