Advanced HR Audit Techniques

This webinar provides an update on the status and evolution of HR audits.

The HR auditing process is or should be an independent, objective, and systematic evaluation that provides assurance that:
1) compliance and governance requirements are being met
2) business and talent management objectives are being achieved
3) human resource management risks are fully identified, assessed, and managed; and
4) the organization’s human capital adds value. Under this definition, HR audits are more than an assessment that solely collects and present evidence of compliance. HR audits are increasingly expected to look behind and beyond the organization’s assertions of sound and proper HR management practices, assess the assumptions being made, benchmark the organization’s processes and procedures, and provide the necessary consultative services to help the organization achieve its business goals and objectives.

This webinar also discusses the design of the HR audit. While a powerful management tool, HR audits are a doubled-edge sword. First, the act of observing and assessing organizational and individual performance changes the outcome. Who gets observed and measured, gets motivated. Individuals and organizations act to respond to the spotlight. In designing the HR audit attention should be given to the message you will be sending about what the organization considers important and what outcomes it expects.  An improperly designed and implemented HR audit can choreograph the wrong compliance dance.

Second, HR audits produce actionable information. While ignorance of non-compliance is hardly an effective defense, knowledge of noncompliance followed by inaction is indefensible. This webinar will review organizational behaviors that ensure effective corrective action.

Third, HR audits produce potentially discoverable information.  Coordination with legal counsel is increasingly critical. This webinar also reviews practical coordination activities.

• The five Critical Components of HR Audits
• Inherent, residual, and material human capital risks
• Human capital risks to financial statements
• HR auditing techniques to improve HR management performance and reduce liabilities;
• Effective HR audit plan

Government agencies have stepped up their compliance audit activities. With larger audit staff and increased resource commitment, federal and state agencies have made compliance a top priority. No employer is too large - or small - for scrutiny. The consequences of this audit activity and a finding of non-compliance include monetary penalties in the form of fines, penalties, awards, and settlements; debarment and lost business opportunities, and criminal prosecution.

The revenue/earnings impact of non-compliance can be significant. Companies with a 10% profit margin will have to generate $1,000,000 in new sales to offset the cost of a $100,000 award. For publicly-traded companies, the magnitude of potential liabilities and lost revenue from non-compliance can impact the organization’s valuation and has to be reported as a material risk.

• Human resources managers
• Internal and external auditors
• CEO and CFOs
• Risk managers
• Compliance managers
• VPS, GMs, Directors, Division Heads, Senior Managers, and Coordinators

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.