Best Practices / Compliance
Compensation Solutions ensures proper human resource “Best Practices” to reduce employer risks by improving employee morale, lowering turnover costs and possible employee litigation.
We offer services such as employee handbooks, disability & leave administration, sexual harassment awareness training, safety evaluations and Employment Practices Liability Insurance (EPLI).
Human Resource Audit Performed Exclusively By:
1.0 Organizational Design
1.1 Evaluate the organizational business goals, direction, and strategy
- Are the goals well defined and measurable?
- Are they compatible or conflicting?
- How successful is the organization at achieving it's goals?
- What are the performance standards? Are they qualitative and/or quantitative?
- Who determines whether the goals are attained?
1.2 Review Mission and/or Philosophy Statement
- Is the statement clear and understandable?
- How is it communicated?
- What is the management philosophy?
- Is it consistent with the identified business goals?
- Are there any "sacred cows" that should be avoided?
1.3 Assess the organizational structure and review the infrastructure
- Is there an organizational chart?
- Are there formal reporting relationships, including the number of levels in the hierarchy and the span of control?
- How are employees grouped together to form departments? By function? By product? Geographically?
- What is the level of communication, cooperation, and integration between departments?
- Does the structure support the current business environment?
1.4 Assess the organizational stage of development
- Does the organizational design support its size, growth, and technology?
- What type of controls are in effect?
2.0 External Environment and Influences
2.1 Evaluate the external influences on the organization
- What are the competitors within the same business?
- What other industries do they compare with?
- Are there target companies they want to compare with? Why?
- Human Resources
- Is there an abundant supply of trained, qualified personnel available?
- What types of personnel do they recruit? What is the availability?
- Financial Resources
What is the availability of money? Are interest rates favorable?
- What types of customers are services?
- What is the level of customer satisfaction?
- How are the following measured - reliability; responsiveness; and the level of assurance.
- What level of complexity is required to successfully compete?
- What is the level of competition?
- Do you have a competitive advantage?
- Economic Conditions
- What is the general economic health of the country or region where the organization operates?
- Assess the unemployment rates, consumer purchasing power, interest rates, and inflation.
What are the regulatory, legal and political systems that surround the organization and determine the amount of freedom it has to pursue its goals?
What are the demographic characteristics (composition of the work force) and the value systems which effect the organization?
Do events and opportunities originating in other parts of the world effect the organization? (E.G.: exchange rates, language, religion, customs, government regulations, etc.)
2.2 Evaluate the level of environmental uncertainty
- Does it operate within a simple or complex environment; within a dynamic or static environment; stable or unstable?
2.3 Determine the level of responsiveness to uncertainty
- Evaluate the level of resource dependency
- How much control can be exerted over environmental resources?
3.0 Human Resource Planning
3.1 Provide an overview of how the business plans (e.g.; major changes in sales, production; and/or technology) are used to anticipate future human resource requirements.
- Estimate the future HR requirements based on business plans. Create an inventory of the type of employees needed to effectively meet the goals?
- How will needs and availabilities be reconciled?
- Is there a formal process to deal with the anticipated gaps between the current skills and future requirements?
- Will a restructuring or reorganization be required? Will there be a training process to enhance skill requirements?
3.2 Determine how Affirmative Action planning is integrated with the overall HR planning.
- Are utilization analyses conducted to determine whether, and to what extent, women and minority groups are underrepresented in various job categories.
- Where underutilization is discovered, are goals and timetables set to amend the problem?
- What type of formal or informal programs exist to address and improve the utilization of qualified employees.
3.3 Determine the effectiveness of the current system of gathering, processing and reporting data and employee information.
- Is there a comprehensive HRIS system?
- Are discreet pieces of information captured about employees and their jobs.
- Personnel Data
- Recruitment/selection data
- Work experience data
- Compensation data
- Performance appraisal/promotability data
- Benefit Plan data
- Health/safety/accident data
- How is this information translated into usable forms of information?
- How is data security protected?
- Is the number of individuals able to update and change information controlled to enhance accuracy?
4.0 Employee Relations
4.1 Review the Employee Handbook
- Are there clear and formal policies relating to: discrimination; sexual harassment; disciplinary and termination procedures;
- How are formal policies developed?
- Are the policies consistent with the mission and goals of the company?
4.2 Review the orientation procedures
- How is important organizational information conveyed to new employees.
- Is comprehensive information provided regarding the company’s goals and values, the employee’s job, and specific benefit information?
5.0 Recruitment, Selection & Placement
5.1 Evaluate the effect of Human Resource Planning and the recruitment and selection effort.
- Are the results from HR planning process integrated with the recruitment process?
- Are job-related characteristics identified for future needs?
5.2 Review the process of obtaining job applicants
What are the internal and external sources and methods? Are various methods used simultaneously?
- Is an advertisement file kept?
- Are there up to date job descriptions?
- Are Candidate files made?
- Do you have testing procedures?
- Is there an application form?
- Has it been reviewed by Counsel?
- What type of reference checking occurs?
- Is there a formal procedure?
5.3 Assess the recruitment methods
- How effective are the methods being utilized?
- What criteria is being used to assess recruitment: pre-entry; during entry and post-entry?
5.4 Review the activities and process through which individuals are selected
- What is the screening process?
- What are the methods of conveying job and organizational information?
- What are the techniques for obtaining job-related information about the applicant?
- What selection criteria are being utilized?
- What are the methods for using information in selection and placement decisions?
- How are candidates matched to the job?
- Are individuals being fairly and legally placed in a nondiscriminatory manner?
- What are the retention rates?
5.5 Are affirmative action goals (and other legal obligations regarding the makeup of the workforce) being met?
6.0 Salary Administration
6.1 Review the Salary Administration Program
- What is the pay philosophy? Pay-for-Performance? Seniority? Pay-for-Knowledge?
- Is it consistent with the overall goals of the company?
6.2 Review compensation methods and administration.
- Are they are administered within legal regulations?
- What job evaluation process is used? How often are jobs re-evaluated?
- How are compensation rates determined? Market driven?
- Is there internal equity among jobs? Are there salary levels and rates?
- Is there external equity?
6.3 Evaluate how employees are rewarded over the short and long term.
- Are the reward systems linked to and consistent with organizational goals?
6.4 Review the promotion and/or advancement procedures
- Are rewards distributed based on clearly set job-related criteria?
- How are incentives used?
- Are the appropriate behaviors being rewarded?
6.5 Assess employee satisfaction and the organizational climate.
- What are the employee perceptions of the pay program?
- What is the retention rate?
- Absenteeism rate?
- Productivity levels?
6.6 Review employee services and perquisites.
- Are they typical of those offered at similar or competitive organizations?
7.0 Performance Appraisal & Evaluation
7.1 Review the method of measuring and evaluating performance:
- What are the means of gathering performance data?
- Who determines the minimum acceptable performance standards?
- How valid are the methods used?
- How is appraisal information used to make personnel decisions?
7.2 Review current job descriptions
- Do they contain a comprehensive statement of duties and skills?
- Are they current and up-to-date?
- Are employees aware of their job responsibilities?
7.3 Evaluate the job evaluation procedure
- How often and by whom are they performed?
- Are the minimum acceptable standards of performance clearly identified.
- How are performance deficiencies handled?
- Is training provided?
- What type of appraisals are conducted? 360; Peer group?
8.0 Training & Development
8.1 Evaluate the training and development program.
- What are the goals of the program?
- Are they consistent with the overall organizational goals?
- What is the primary purpose of the program? To improve performance levels and/or prepare employees for new jobs
- How are the instructional objectives set?
- How are instructional approaches and techniques set? On-the-job; off-the-job?
8.2 Review the selection criteria for training pool.
- Is succession planning utilized?
- Is a formal needs analysis conducted?
- How are training needs diagnosed?
8.3 Assess the Training Program
- Who develops the training program?
- How are instructional objectives set?
- How is the programs effectiveness determined?
- Are special training programs provided for women and minorities under affirmative action plans?
8.4 Evaluate the overall employee development effort
- Analyze the efficiency index.
- Can changes in profitability, sales, turnover be attributed to the program?
- What is the level or quality of the products and/or services provided?
- How productive is the organization compared to its competitors?
9.0 General Organizational Considerations
9.1 Evaluate the consistency of the policies
- Are the policies consistent with one another other?
- Do they support and fit with the goals of the organization?
THE ABOVE PROCESS IS INTENDED FOR AUDITING PURPOSES ONLY. CSI’s INTENT IS TO REVIEW ALL PROGRAMS IN AN EFFORT TO IMPROVE ORGANIZATIONAL EFFECTIVENESS AND REDUCE THE EXPOSURE TO UNWANTED LAWSUITS. FINAL POLICY AMENDMENT SHOULD BE REVIEWED AND APPROVED BY LEGAL COUNSEL.