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Laurdan Associates, Inc.

HR Audits

Ineffective, misaligned, and unlawful employment policies, processess, and practices negatively effect an organization's employee realtions, public reputation, employment brand, and compeitiveness and can significantly threaten the bottom line.  Negative employee relations and unlawful employment practices increase the frequency of third party intervention.  Misaligned human capital strategies reduce the contribution of human capital and the valuation of the organization.

In response to these threats, top management, boards of directors, internal auditors, and HR professionals are increasingly using HR audits as a management tool to assess alignment, to ensure compliance, to reduce the exposure to employment related liabilities, and imporove the value of the organization's human capital.  Like financial audits, HR audits are being used to assess management activities, identify policy, procedural, and process weaknesses, perform due diligence, benchmark best practices, and quantify and evaluate outcomes.

Laurdan Associates, Inc., an internationally recognized thought leader in HR auditing and employment practices liability (EPL) risk management, has developd a suite of HR auditing and EPL risk management products and services that help organizations increase the value of their human capital and reduce their exposure to EPL realated losses through human capital risk management.  In addition to ELLA® , the Employment-Labor Law Audit, the leading HR auditing and employment practices risk assessment process, Laurdan Associates conducts on-site and off audits, assests organizations develop internal auditing tools, develops internalized experiences rating programs, conducts employee and applicant surveys, trains clients' staff on the use of HR audits, and develops other assessment methodologies.

Using the HR Audit Model to assess the five critical componenets of the HR auditing process, Laudan's approach is to help employers identify and assess problems and develop cost-effective solution.  In addition to assessing HR management practices, procedures, and processes, Laurdan's HR auditing activities include:

Quantifying and assessing outcomes

A critical element of Laurdan's HR audit process is the development of the ELLA HR Audit Scorecard and Key Performance Indicators (KPIs) and the assessment of current and potential outcomes.

Assessing alignment
The best employment practices are of limited value if they are misaligned with the organization's strategic and business objectives and lead to the wrong results.  An esssential element Laurdan's HR audits is an assessment of human resource management aliignment.

Comparing activities and results to standards and goals
Like financial audits, Laurdan's HR audits compare activities and results to external and internal standards and to expected and budgeted goals.

Reviewing structural, organizational, and cultural issues
The effectiveness of various employment policies, practices, and procedures is determined by a number of external and internal factors.  Laurdan's HR audits help identify and assess those factors.

Assessing the employment brand
Like product branding, employment branding influences customers' (employees') desire and willingness to buy the product (become and stay an employee). Laurdan's HR audits help assess the organization's employment brand.

Assessing written and virtual policies
All organizations have policies, procedures, work rules, and important messages that they communicate to their employees.  Sometimes HR management issues are addressed in a memo distributed to all employees; sometimes they are posted on a bulletin board; and sometimes they are communicated orally by supervisors or management.  While virtual policies are not always incorporated into a formal employee handbook, they have the same effect, frequently, contradict written organizational policies, can cause employee confusion and misunderstanding, and can lead to possible disparate treatment.  To help reduce areas of conflict, Laurdan identifies and reviews both written and virtual policies.

Assessing internal controls
Internal controls are processes, test, and assessments that help ensure compliance, manage risks, and help ensure the achievement of organizational goals.  Laurdan's HR auditing acitivities include assessments of the effectiveness and efficiency of HR management policies, practices, and procedures; the reliability of HR management reporting; and the level of compliance with laws and regulations, industry standards, codes of ethics, organizational policies, and budgets.

Risk assessment
Risk Assessment is the identification of current and/or future events that have the potential to cause loss, peril, or vulnerabilities; or that create new opportunities for the organization to achieve its business objectives.  Risk assessment provides management with the information to make informed decision about the allocation of the organization's human, physical, and capital resources and about effective ways to eliminate, mitigate, control or transfer risks.  Human resource and employment practices liability risk management include an assessment of: 1) employment law and regulation compliance failures; 2) lost business opportunites due to the failure to hire and retrain top performers and talent in critical positions ; 3) intangible asset losses due to turnover of top talent and key employees; and 4) lower profitability due to the external and internal factors that impact human resource management and employment practices.