How an HR Audit can help with compliance
Because of the multitude of laws affecting each stage of the employment process, it is extremely important for an employer to regularly conduct an HR analysis of their policies and practices. This helps to identify regulatory compliance issues if they exist and avoids potentially costly fines and/or lawsuits, if otherwise ignored. An employer overlooking regulatory compliance with their human resource practices could face:
- A fine of $1,000+ 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 for each occurrence of failing to post required safety notices or keeping accurate records.
- Fines up to $1,000 per employee for non-compliance with the Federal Immigration Reform Act.
While penalties such as these help define the risk of non-compliance and signify the importance of conducting periodic HR Audits, an Audit can also ensure that policies and procedures are fair and consistent across the organization and strengthen employee satisfaction. By maintaining a satisfied and productive workforce, an employer lessens the expense associated with costly turnover of staff. Losing one employee is estimated to cost a company 50 – 150% of the lost employee’s salary in time and money spent to replace that employee.