HR Audits 2025: Update on Strategic Planning, Application Activities, and Operational Impact
Duration: 90 Minutes
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? Do you consider the strategic and tactical impact of human capital decisions on your organization’s ability to achieve its business goals and objectives? This session discusses the development and use of HR Audits in answering these questions and addressing critical risk management and due diligence issues.
- Discuss current trends in HR Auditing
- Discuss senior management’s HR auditing goals and issues
- Learn the critical components of an HR audit
- Discuss economic, political, regulatory, and social factors affecting HR audits
- Review the use of HR auditing tools
- Discuss the development of the HR Audit Scorecard
Since HR audits can assist your organization identify weaknesses and failures in its human resource management and employment practices compliance activities, your organization’s selection and use of HR auditing is not only an indicator of what issues it considers important but is also an indication of your organization’s commitment to identify and ferret out ineffective or unlawful practices and processes. Thus, your organization may be scrutinized not only on the issues it chooses to audit, but also the issues it chooses to ignore.
Thus, your use of HR audits should consider strategic and tactical issues, identify risks and assess compliance, and develop both quantitative and qualitative methods and measurements to assess these risks. Your HR audit activities should help you assess your organization’s performance and should provide you with data that will allow you to evaluate human capital outcomes.
Thus, your use of HR audits should consider strategic and tactical issues, identify risks and assess compliance, and develop both quantitative and qualitative methods and measurements to assess these risks. Your HR audit activities should help you assess your organization’s performance and should provide you with data that will allow you to evaluate human capital outcomes.
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.
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.
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.
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.”
It this environment, identifying and assessing human capital related risks have become a critical element of an organization’s success. As a result, an organization’s ability to audit and manage these risks plays an increasing role in helping them succeed
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.
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.
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.”
It this environment, identifying and assessing human capital related risks have become a critical element of an organization’s success. As a result, an organization’s ability to audit and manage these risks plays an increasing role in helping them succeed
- All industries and organizations
- HR professionals
- CFOs
- Internal and external auditors
- Business owners
- CPAs
- Risk managers
Ronald L. Adler, president of Laurdan Associates Inc. has 42 years of HR consulting experience and has served as a consulting expert on work force, workplace, and HR management issues for The Wall Street Journal, HRMagazine, and other publications and newspapers across the country. Mr. Adler's research findings have been used by the Federal Reserve Board, the EEOC, the National Conference of State Legislatures, the National Federation of Independent Business (NFIB), insurers, and international organizations.
Mr. Adler is a frequent lecturer and author on HR management, employment practices, and UI issues. Mr. Adler is the author and editor of the Employment-Labor Law Audit (ELLA), the internationally recognized HR auditing and employment practices liability risk assessment process.
Mr. Adler is an adjunct professor at Villanova University where teaches a graduate level course in HR Auditing. Mr. Adler is also a certified instructor for The Chartered Property Casualty Underwriters (CPCU) Society on employment practices liability and HR auditing issues and has conducted continuing education courses for the American Institute of Certified Public Accountants (AICPA) and the Society for Human Resource Management (SHRM) on HR management and HR auditing topics. Additionally Mr. Adler has served as an adjunct instructor at the Baltimore City Community College on workplace diversity and sexual harassment.
Mr. Adler is an appointee to State of Maryland's Unemployment Insurance (UI) Oversight Committee and previously served as an appointee to the State's UI Funding Task Force, the UI Advisory Committee, and the state's Workforce Training Initiative. Mr. Adler has served as a moderator at the State of Maryland's Annual Human Relations Conference and at the state's Annual Small Business Conference.
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