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Feds Will Audit—Shouldn't You Do It First?

by Steve Bruce


Even the best process, if poorly executed, will yield questionable results, says Ronn, president and founder of HRworks, a national talent evaluation and recruitment firm. Again with thanks to our sister publication Affirmative Action Solutions, here are Ronn's tips for evaluating execution of talent acquisition.

Economy Is Disrupting Execution
The current economic disruption of business is resulting in continuous restructurings of responsibility, says Ronn. Reductions in force cause loss of painstakingly acquired knowledge. In short, the upheaval often leaves unqualified or untrained people performing significant tasks, he adds. And that means significant risks.


So make sure that you evaluate not just what your systems mandate, but also how they are being implemented. Performing self-audits to measure the quality of your execution is your best approach.

Be prepared to train or retrain recruiters and hiring managers whenever your audit suggests there is even a hint that corners are being cut, or that lack of knowledge is leading to potentially expensive mistakes.

Remember, says Ronn, that the Office of Federal Contract Compliance Programs (OFCCP) will interview hiring managers and recruiters during their audit. They specifically want to determine how the de facto hiring practices compare to the documented practices.


Nobody is perfect, says Ronn, but you want everyone involved in hiring to be:
 1) Knowledgeable about the process and practices, and 
 2) Following the appropriate guidelines and rules.


Sometimes refresher training itself is a good tool for measuring compliance, says Ronn. If participants are unfamiliar with systems or reveal that they are using unacceptable practices, you'll find that out and be able to nip it in the bud.


Don't look at this as an opportunity to punish, Ronn says. It's an opportunity to improve your execution.

Finally, in this complex time, stay focused. Pay attention to the rapidly changing compliance landscape, yes, but spend your time on the areas where you have the most risk—and that's often at the front end of the hiring process.


Supervisors and managers have very full plates right now, so there's always the temptation to circumvent policy in the name of productivity. That's a dangerous situation. But how do you figure out whether supervisors and managers are following the rules?


Our editors recommend the "simple solution"—an HR audit. It's the only surefire way to identify problems early and correct them before they turn into expensive lawsuits.


Experts recommend an annual audit, but maybe next week would be better? In either case, to do a good audit, you need audit checklists, and there's good news: BLR's editors have already written them—for all of the most difficult HR challenges you face.

  • Benefits and leave (including health cost containment, COBRA, FMLA, workers' compensation, and several areas of leave)
  • Compensation (payroll and the Fair Labor Standards Act)
  • Performance and termination (appraisals, discipline, and termination)

 

 

View original publication in the HR Daily Advisor