HR Audit (Part 5)

EMPLOYEE TREATMENT

1. Are employees afforded a process where both sides of a complaint are heard and a decision is rendered fairly?
2. Are disciplinary procedures and rules of conduct explained in an employee handbook or other form of notice? (Remember, the purpose of discipline is to have people behave in an acceptable way.)
3. Are progressive forms of discipline expressly cited?

    Are they consistently applied?

1. Are fairly competitive employee benefit programs in place?
2. Is there a program that provides for management and employee participation in the discipline process?
3. Are there opportunities for employee professional growth?
4. Does the organization demonstrate, emphasize and reward leadership to ensure success and satisfaction in the organization?
5. Using a one-to-seven scale how do immediate manager practices rate in terms of daily supervision and management of employees?
6. Has the organization demonstrated reasonable employment security?
7. Is direct compensation/pay reasonable, equitable and competitive?
8. Are employee and team accomplishments, special efforts and contributions recognized in addition to direct pay?
9. Does the organization encourage teamwork and employee involvement?

STATISTICS

1. What is the organization’s monthly absentee rate?

    Do you consider this high or low?

    In what departments/areas are absences particularly high and why?

1. What is the annual turnover rate (average position replacements per year)?

    Do you consider this high or low?

1. Are exit interviews conducted?

    By whom?

    Who is given feedback from the exit interview and how is it used?

1. Are demographics of turnover data analyzed?

    How is this analysis used?

    What has management done in the past two years to reduce turnover?

1. Has the organization attempted to project future needs in terms of an increase in working mothers, child care, single parents, elder workers, a more diverse work force, etc.?
2. Has the organization made plans to meet its future employee relations needs?
3. On a scale of one to seven (seven being the highest and four being adequate), how do you think your Human Resources department would rate the effectiveness of the organization’s employee relations and communications programs?
4. On the same one-to-seven scale, how do you think your internal clients (other departments and employees) would rate the effectiveness of the employee relations and communications programs?

Explanation of Employee Relations and Communications Questionnaire
    This section covers employee satisfaction. This critical aspect of human resources management is broad in scope, complicated and difficult to measure. Since almost half of our waking hours are spent at work, an interesting and pleasant work environment is essential to retain quality employees.

    The questions in this section are designed to help you understand and deal with intangible employee relation issues. These include communication, how employees are treated, support systems and those conditions of employment conducive to employee satisfaction, motivation and productivity. Three major issues are covered here: (1) communication, (2) employee treatment and (3) statistics as a gauge of employee satisfaction.

    Policy statements, newsletters, bulletins, messages and information handbooks help the employer communicate with the employee. The employer’s willingness to commit to its philosophy in writing sets the stage for a candid dialogue. A standard of openness displays a sense of trust. While employees may not read every word, these communications help the employee identify with the company and its success.

    Most important in this section are the responses to questions nine and ten. It is important for your organization to have scheduled an interaction with employee groups and representatives for discussion of issues of mutual concern.

    How the company treats employees is certainly important to them. It is also crucial to the organization’s well-being. Bad or inconsistent treatment is the number one cause of voluntary turnover. Money can’t compensate if basic human needs, such as dignity, respect, justice and social interaction, are lacking. An increase in work hours, coupled with a decrease in the quality of work life, loyalty and security issues, is responsible for a resurgence in union membership. The unionization of white-collar employees and frontline workers is increasing, particularly in services, such as government, hospitals, insurance and financial firms. How the employees are treated should be of utmost concern to you.

    Policy guidelines help managers make decisions concerning specific workplace issues. From the employer’s point of view, personnel policies and procedures which guide managers to do their jobs better are extremely valuable and help the organization achieve its objectives.

Personnel Policies/Workplace Rules Questionnaire
    Statements of guiding principles intended to translate organizational objectives and means into operational terms and help managers make decisions.

1. Are there written procedures governing all conditions of employment and policies clearly stating the organization’s human resources philosophy?
2. Are there procedures for monitoring the organization’s compliance with personnel laws and regulations?
3. Are there policies and procedures published and adequately communicated?

    How? (please describe)

1. Is there one position within the organization accountable for overseeing the development, coordination and distribution of these policies and procedures?
2. Do these policies reflect the organization’s desire to be an "employer of choice"?
3. Do these policies and procedures contribute toward the organization’s mission and objectives?
4. Do they balance empowerment of staff with sufficient controls to ensure achievement of the organization’s mission and objectives?
5. Are managers guided by policy as they make decisions from hire through separation of employment?
6. Are managers given the opportunity to provide input to policy drafts before they are formalized?
7. If there are other rules outside the organization’s stated policies, such as Civil Service rules, are they communicated to and understood by the managers?

    If yes, does management periodically review such outside rules to see if they reflect the organization’s current needs?

1. Is policy consistent in purpose, background and procedures for implementation?
2. Are effective dates of policies cited, and do they specify any previous policy statements they supersede?
3. Are all policies approved at the highest appropriate level of the organization before being adopted?
4. Are personnel policies condensed into an employee handbook?
5. Is the current personnel policy manual periodically reviewed by legal counsel to reflect new laws affecting employment, personnel relations, working conditions, employment at will, implied contract and disclaimer issues?
6. Are new policies that may have legal implications also reviewed by legal counsel?
7. Does the organization regularly assess existing policies for necessary replacement or amendment?
8. On a scale of one to seven (seven being the highest and four being adequate), how do you think your Human Resources department team would rate the effectiveness of the organization’s policies and procedures?
9. On the same one-to-seven scale, how do you think your internal customers (other departments) would rate the effectiveness of the organization’s policies and procedures?

Explanation of Personnel Policies/Workplace Rules Questionnaire
    Personnel policies and workplace rules are intended to make organizational objectives reality. They should guide managers to do their jobs better and help them make decisions concerning workplace issues. Policies and procedures should cite their bases and resources to help managers make informed decisions. Personnel policies should also be flexible enough for managers to exercise discretion.

    In a flattening organizational structure, policies and procedures can support delegating decisions. They should serve as a basis for managerial direction, accountability, consistent and effective behavior and compliance monitoring.

    The policy manual should serve as a guide for the department to maintain accountability for managing and delivering human resource services effectively. A balance between staff and managerial controls will ensure the most likely achievement of the organization’s mission and objectives. Principles of teamwork and recognition of employees’ input should be emphasized as the most important components of an effective human resource philosophy.

    Here is a sample human resource philosophy.

    The XYZ Company recognizes that employees are its most valuable resource. The successful evolution of the organization depends on the support and performance of all employees in achieving its stated mission. Accordingly, the XYZ Company will strive to become an employer of choice by providing those programs and services which support employees in the performance of their jobs, enhance the spirit of teamwork and quality of life, and provide for employee well-being from hire through separation from XYZ Company.

Equal Employment Opportunity and Regulatory Compliance Questionnaire
    Policies and practices to ensure compliance with equal employment opportunity laws and other governmental regulations as they relate to recruitment, selection, placement, compensation and treatment of employees while enhancing the validity and effectiveness of related personnel systems.

1. Does your organization have a stated policy covering equal employment opportunity as well as its compliance with all applicable discrimination laws?
2. Does your organization explicitly state its position against discrimination because of:

Race?

Color?

Sex?

Religion?

Sexual orientation?

Physical/mental handicap or disability?

Age?

National origin?

Ancestry?

Marital status?

    How is this policy communicated inside and outside the organization?

1. Is there one position within the organization accountable for overseeing and coordinating EEO policies and procedures?
2. Is there a review process to keep the organization up-to-date regarding regulatory issues and compliance?
3. Are job openings analyzed for job-related skills, education, knowledge and ability requirements?
4. Are selection criteria based on these job-related requirements?

    Can all hiring decisions be defended against these criteria?

1. Are all tests used in the hiring process valid?
2. Are all hiring managers trained in nondiscriminatory hiring practices?
3. Has the employment application been reviewed to ensure that it meets all equal employment opportunity requirements?
4. Is there an internal process for employees to register complaints concerning discrimination and harassment?
5. Does your organization have an explicit policy against sexual harassment?

    Has a procedure to resolve sexual harassment claims been implemented?

1. Do you offer training to management on sexual harassment awareness and legal requirements?
2. Does your organization conform to all provisions of the Americans with Disabilities Act (ADA)?

    Does your organization have a policy statement that prohibits discrimination against qualified handicapped or disabled individuals?

    Do your organization’s job descriptions distinguish between those qualifications, physical requirements, duties and responsibilities which are essential and those which are nonessential?

    Are policy manuals, handbooks, recruitment notices, job postings and advertisements consistent regarding qualified individuals with a physical or mental impairment of a major life activity?

    Can disabled individuals apply for job openings and gain access to the premises?

    Is there a review process for employee restrictions and reasonable accommodation requests?

1. If you are a Federal or State government agency, does your organization conform to the requirement of the Veterans’ Preference Act?
2. Does your organization have a government supplies/service contract or subcontract of $50,000 or more in any 12-month period?

    If yes, does it have an Affirmative Action Plan (AAP) in place for each of the organization’s establishments?

1. Are all AAPs developed according to the Office of Federal Contracts Compliance Programs (OFCCP) guidelines, including:

Affirmative Action Plan Narrative?

Workforce Analysis?

Job Group Analysis?

Availability Analysis?

Utilization Analysis?

Goals and Timetables?

1. Does your organization conduct a self-EEO/AAP audit on a periodic basis?
2. Does your organization have a hiring procedure regarding the examination of documents to verify applicant identity and authorization to work in the United States as spelled out in the Immigration Reform and Control Act (IRCA)?
3. Does your organization have a Federal contract or subcontract of $25,000 or more?
4. If yes, does your organization fulfill the following requirements of the Drug-Free Workplace Act of 1988?:

    Publish a policy statement prohibiting the unlawful manufacture, distribution, possession or use of a controlled substance in the workplace and specifying what actions will be taken against employees who violate the policy?

    Provide a copy of the policy to employees working under the contract?

    Provide guidance/training on policy requirements?

    Have a drug/alcohol-free awareness program?

    Notify employees they must, as a condition of employment, notify the employer if they are convicted of a criminal offense occurring in the workplace within five days after the conviction?

1. Does your organization comply with the requirements of the Omnibus Transportation Employee Testing Act of 1991?
2. Does your organization provide programs for drug/alcohol rehabilitation?
3. Does your organization conform to the Family Leave Act?
4. Does your organization comply with requirements set forth in the Occupational Safety and Health Act (OSHA)?
5. Does your organization conform to the provisions of Employee Retirement Income Security Act of 1974 (ERISA)?
6. Has the organization assessed or met current and emerging legal issues relating to equal employment and other governmental regulations?
7. On a scale of one to seven (seven being the highest and four being adequate), how do you think your Human Resources department would rate the organization’s performance in the area of equal opportunity and regulatory compliance cited above?
8. On the same one-to-seven scale, how do you think employees would rate the organization’s compliance performance?

Explanation of Equal Employment Opportunity and Regulatory Compliance Questionnaire
    Governmental regulations affect every aspect of personnel management. Regulatory compliance is one of the foremost concerns in human resources management. Knowledge of employment law provides job security to the HR professionals who specialize in this area. Human resources management literature, seminars and government publications cover these legal issues. Many HR professionals--no matter what their specialty--have of necessity become paralegals.

    Questions in this section have been designed to highlight pressing regulatory issues. Emphasis has been placed on complex issues, such as the American with Disabilities Act and the Drug-Free Workplace Act.

    The HR department should review internal procedures that both address due process in handling complaints of discrimination and harassment and encourage training and awareness to ensure a harassment-free nondiscriminatory workplace. A qualified senior-level individual should oversee these efforts and keep top management informed of progress. Organizations that demonstrate genuine concern for EEO, affirmative action and diversity issues also resolve most claims in-house.

    Legal fees and ‘no fault’ settlement awards have reached outlandish proportions. The rapid increase in claims, particularly in the sex and disability categories, has created a backlog in the EEO Commission and forced claimants to initiate civil suits. Aging baby boomers who are being rapidly trimmed from large corporations are expected to launch a new wave of legal suits. They are more likely to have the financial resources to encourage the legal community to aggressively pursue age discrimination claims. Increased attention to compliance issues necessarily must include self-audits patterned after the Office of Federal Contracts Compliance Programs (OFCCP) as published in the Federal Registrar and Bureau of National Affairs.

    All organizations should find ways to prevent discrimination and harassment claims. This section of the self-audit is critical to understanding and using regulations to enhance both prevention and in-house resolution of claims. Proper job specifications and requirements, valid testing and screening techniques, equal opportunities for all employees, consistency in employee treatment and valuing diversity demonstrate good business management.