Resource Alternatives Consulting

Smart Solutions for Small Business

Human Resources Self Audit

Every organization, whether you have one employee or 500 employees, should have an annual Human Resources Audit.  This audit can be performed by your staff or outsourced to a consultant.  An HR audit is similar to an annual health check.  It is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its HR functions. An audit involves systematically reviewing all aspects of the human resources function.  It also ensures that government regulations and company policies are being adhered to and your organization is not at risk for fines and penalties.  Below are listed a series of questions to help you assess the effectiveness of the Human Resources function in your organization. This list of questions is not designed to be all-inclusive, but to determine a starting point for your company. 





1.                   Do you use a variety of recruiting avenues to fill new and open positions?

2.                   Do you use a standard application?

3.                   Do you maintain a file for all applicants who were not selected?

4.                   Do you use selection tests to identify potential candidates?

5.                   Do you use job descriptions or job analysis to identify key skill sets and responsibilities for open positions?

6.                   Do you complete reference checks on all new hires?

7.                   If so, have applicants signed a written release to allow you to contact references?




1.                   Do you maintain employment files on current and prior employees?

2.                   Do you have completed I-9 (Employment Eligibility Verification) forms for all employees per the Immigration Reform and Control Act (IRCA)?

3.                   Are you in compliance with OSHA recordkeeping requirements?

4.                   Do you have current required federal and state employment postings displayed?

5.                   Do you maintain time keeping records for your employees?

6.                   Do you maintain payroll records for your employees?




1.                   Are you in compliance with the recent reclassification of employees according to the Fair Labor Standards Act (FLSA)?

2.                   Do you pay overtime to your non-exempt level employees who work more than 40 hours in a week?

3.                   Do you permit employees to carry over “comp time” from week to week?

4.                   Are employees who are doing the same job paid equitably?

5.                   Are salary increases completed objectively and consistently across the organization?


Federal and State Regulations


1.                   Do you file required EEOC and new hire reporting information?

2.                   Do you maintain Worker’s Compensation Insurance for your employees?

3.                   If you have more than 50 employees, have you communicated your Family and Medical Leave Act (FMLA) policy?

4.                   Are you in compliance with the Consolidated Omnibus Budget Reconciliation Act (COBRA)?

5.                   Do you have a stated policy covering equal employment opportunities as well as compliance with all applicable discrimination laws?

6.                   Do you have a specific policy against sexual and non-sexual harassment?  


Employee Relations/Workplace Rules


1.                   Do all new hires attend an employee orientation program?

2.                   If you have an employee handbook, have all employees received a copy of the handbook?

3.                   If so, have they signed a statement acknowledging they have received, read and understand the handbook?

4.                   Do you have a consistent means of measuring performance for employees?

5.                   Do employees have a venue to discuss complaints and resolve them fairly?

6.                   Do you have written disciplinary procedures and rules of conduct?

7.                   If so, have they been communicated to all employees?

8.                   If you have a progressive discipline process, is it followed consistently?

9.                   Are terminations handled in a manner that complies with applicable laws and the company’s policies?

10.               Do you have procedures for monitoring compliance with personnel laws and regulations?

11.               Are policies that may have legal implications reviewed by legal counsel?


After reviewing the questions, if you determine a more thorough review is indicated, you can contact us for a Human Resources Audit and Compliance Review.   Through an audit, companies can assess where they are, uncover any issues they may have, and determine how they can best align HR functions with business goals.  


If you are interested in an objective assessment of your company’s Human Resource functions contact Resource Alternatives Consulting at 609 647-4647 or via e-mail at  The initial consultaion is free and we provide a variety of options to meet your needs:


The Desk Audit – limited in depth and scope:

A "checklist" approach designed to quickly identify areas of significant concern that might warrant a more detailed review in the areas of:

  • Recruiting
  • Compensation
  • Recordkeeping
  • Federal and State Regulations
  • Limited Employee Relations/Workplace Rules

 The Desk Audit will take approximately two days and starts at $500.


The Compliance Audit - designed to provide an in-depth review of compliance issues, in addition to the Desk Audit also evaluates the following areas:

  • Employee selection process
  • Employee benefits and leaves of absence
  • Employee handbook
  • Compensation administration
  • Recordkeeping
  • Corrective action (discipline) and discharge

The Compliance Audit starts with an initial meeting with your managers and staff involved in the human resource functions to review answers to the audit questionnaire and concludes with an in-depth review.  A Compliance Audit can last between three days and a week based on the size of the organization.  Ask for a quote.


 The Comprehensive Audit – covers, in addition to all the above:

  • Job descriptions
  • Affirmative Action and EEO procedures
  • Supervisory training and development
  • Performance management systems
  • General training and development
  • Employment agreements and contracts


The Comprehensive Audit starts with an initial meeting with your managers and staff involved in the human resource functions to review answers to the audit questionnaire and concludes with an in-depth review.  A Comprehensive Audit can last between four days and two weeks based on the size of the organization.  Ask for a quote.