Conducting HR Audits: A Critical Issue in 2017
How effective is your organization’s human resource management? Is your human capital helping you achieve organizational objectives? Are your employment practices creating material risks and liabilities? This session discusses the development and use of HR Audits in answering these questions and addressing critical risk management and due diligence issues.
Third, governmental agencies have become more active — some would argue more aggressive — and have committed more resources to conducting assessments of employment policies and practices. Importantly, the EEOC, the OFCCP, U.S. DOL, and ICE have advised employers that they consider self assessments and audits a “best practice.”
Second, a confluence of economic, political, and social factors, including corporate scandals, the failure of industries to adequately assess risks, and increasing stockholder initiatives, have resulted in increased statutory and regulatory requirements, a call for greater transparency, and increased internal and external audit activity.
Numerous external forces and factors have an impact on the demand for and scope of HR audits. First, in the global economy, human capital has become for many organizations the single most important determinant of competitiveness, productivity, sustainability, and profitability. Increasingly, the organization’s human capital is the source of innovation and a driver of business success.
The threats and risks from human resource management issues are increasing. No longer measured in only fines, penalties, and awards for non-compliance, human resource management affects keys business metrics, including the organization’s valuation and credit rating. Further, improper human resource management can significantly reduce managerial prerogatives, and seriously damage the organization’s reputation and employment brand. Thus, HR audits have become a critical tool in identifying problem areas and are evolving from an ad hoc audit activity to a critical element of organizations’ risk management and compliance processes.