News and Views from the (outsourced) HR Desk:
What does flossing your teeth and undertaking an HR Assessment have in common? Not much really—except for the fact that most people and businesses don’t like doing them until it’s too late. When your dentist says you “you have a cavity” or the department of labor shows up at your door you know you’ve waited too long.
We won’t dwell on it, but for the purposes of this blog- we recommend going to your local drug store and not only buying floss but actually using it!
With regard to an HR Assessment, this too is important maintenance but of the business sort. All too often business owners, executives, and HR professionals forget to take time to assess and evaluate the HR health of their organization. Left unchecked, the company or institution is potentially exposing itself to harm. At the very least, it might manifest itself by the organization not securing or keeping “A” talent—but at the other end of the spectrum, it could result in costly fines and penalties or legal trouble. Here’s an idea of what you might see for run-of-the-mill employment law or HR violations:
- Fine of $1,100 for any violation of the appropriate amount of overtime for non-exempt employees in accordance with the Fair Labor Standards Act
- Penalties as high as $10,000 each occurrence for 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.
- If you don’t have I-9 forms available, fines can be anywhere between $110 and $1,100 per form you can’t produce
What does an HR Assessment entail? Typically, an assessment provides a “health check” of the many functions under the HR umbrella. Similar to a 25K mile routine maintenance on your car (where everything is looked at from tire pressure to fluid levels), an assessment should address: compliance with Federal and State labor laws, hiring and onboarding practices, pay practices, job classification, performance management, comp & benefits, training, employee engagement, employee files, and documentation.
A thorough and complete HR Assessment requires experienced eyes and ears. Typically, it takes about two to three weeks to research and prepare a report for the client- as it involves interviewing executive management and reviewing policies and procedures to truly understand the business. At the end of an HR Assessment, the client will receive an executive report that highlights what HR areas are working, what needs to be addressed and what aspects require immediate attention.
Arguably an HR assessment should be undertaken on a regular basis because laws and regulations are ever-changing and being aware of compliance issues is always critical. HR compliance assessments are a solution to make sure internal policies and practices are aligned with external regulations and laws, thereby protecting you and your business from potentially harmful litigation. Unfortunately, we are aware that most small to mid-size companies (and some large ones too) have NEVER opened up their HR function for review. If you or a business owner you know are losing sleep because you don’t think your handbook is current, are confused by all of the new government regulations, or feel that policies and procedure aren’t inline with the overall direction of the company, then it’s probably time for an HR Assessment!
HR Pals is a virtual, outsourced Human Resources service firm. It’s the perfect solution for companies who need professional HR and Recruiting help, but don’t need a fully staffed HR Department. As one of their services, HR Pals offers an HR Assessment that will uncover potential liabilities and serve as a roadmap towards future best practices. To learn more contact: Matt Golding VP Sales & Marketing or visit HRPals.com