HR Risk Mitigation Audit

All companies should have a risk management plan especially for your HR activities. One way to get a handle on how much risk your organization may be exposed to is to have a Human Resource policy and practice audit. The idea of an audit may raise the stress levels a bit; however, not as much as being served with a lawsuit would or being notified of penalties for overlooking compliance such as:

  • A fine of $1,100 for any violation of the appropriate payment of overtime for non-exempt employees in accordance with the Fair Labor Standards Act.
  • Penalties as high as $10,000 each occurrence for failing to post required safety notices or keeping accurate records.
  • Fines up to $1,100 per individual I-9 for failure to properly complete, retain, or make I-9 Forms available for inspection under the Immigration Reform and Control Act.

A recent research association, The Conference Board, reported that “while human capital risk has the fourth (out of 11) greatest impact on business, it ranks tenth in how effectively it is managed.” People-related risks are increasing with the ever changing government regulations and growing diversity in the workplace.

An HR Risk Mitigation Review not only tells you the facts of where you are; it also tells you where you could be. The results of the review can help employers make critical decisions in the following areas covered by the audit:

  • Compliance
  • HR Processes
  • Forms and File Inspection
  • Workplace Policies
  • Work Environment

    • Our HR Risk Mitigation Review is a proactive audit that can save your organization time and expense. Our HR Professionals can identify problem areas with an objective and clear set of eyes. We speak with individuals across all parts of the company to gain their perspectives and learn what’s working and what’s not being consistently applied when it comes to HR practices.

    A comprehensive HR Risk Mitigation Review summary of findings is helpful to company business owners and executives to become aware of workplace deficiencies, legal compliance concerns and to have an action plan for improving HR processes and mitigating risk.

    Peter Cappelli, professor of management at Pennsylvania’s The Wharton School and director of Wharton’s Center for Human Resources, puts it succinctly when he says: “In risk management, everything you can imagine comes back to what’s up with people.” And as Will Davies, a director in Deloitte’s HR advisory practice, warns more starkly: “Any one person can bring a company down.”

    Risk cannot be eliminated, but it definitely can be mitigated through smart people-related policies and practices.