HR Audits (and Compliant Job Descriptions) Save Money in Business and at Work

All organizations have tactical and strategic Human Resources (HR) needs. For example, paying employees and making accurate payroll deductions is more on the tactical side of HR (actually, a shared responsibility of both the HR and Finance functions); and there’s a good percentage of organization leaders who consider that element on its own to be the sum and total of HR for their respective organizations.

However, HR is more than just pay and benefits: it’s a key element of any organization’s strategic plan, essential to supporting the organization’s goals.

A good first and proactive step is to conduct an HR Audit, to ensure at minimum all HR processes, transactions and documentation are compliant, which in turn supports ongoing success and growth for your organization.

A typical first step on an HR Audit is ensuring that each employee has a complete job description that reflects the work they’re actually performing; and employees agree (and that agreement is documented). Job descriptions are a critical component of ensuring HR compliance in your organization on a number of levels (which in turn saves money for your organization in several areas), including but not limited to:

• Audit by the Department of Labor:  if DOL pays you an unannounced visit and you don’t have current / compliant job descriptions, how will you prove which of your jobs are exempt from overtime and which are nonexempt?  In these tight government budget times, DOL’s fines to employers of all sizes are a key funding stream, not to mention the multi-year back-wage repayment requirements if DOL discovers Wage & Hour violations at your workplace.
• Worker’s Compensation Injury / Liability:  If your employee sustains an injury at work and there is no job description, how will you prove to your Worker’s Comp carrier that you’ve done your diligence in informing your employees about what safe conduct is in your workplace, by stating what the minimum physical requirements are for each job in your organization? Can you afford a big increase in your Worker’s Comp insurance coverage?
• Independent Contractor or Employee? Are you absolutely certain that your current Independent Contractors meet the state and federal criteria to legally be recognized as an Independent Contractor?  If not – and you want to retain this individual(s) – an employment offer and a job description are required, in short and expedited order.

Have you proactively conducted an HR audit, ensuring that your organization has (at the very least) compliant job descriptions, in business and at work?