When conducting human resource audit, the auditors from the audit firms in Johor Bahru will investigate each regulation of the company’s human resource department. Those regulations include recruitment and selection, compensation and benefits, the management of workplace safety and risks, as well as training and development. The human resource audit aims to identify whether the policies of a company is up to date and adheres to the laws it needs to follow.
- Review the recruitment and selection processes
Auditors should ensure that the company follow the acts and policies that promote equal employment opportunities when they recruit and select new employees. They need to make sure that the company’s employment advertisements, pre-employment tests, as well as the structured interview questions, are unbiased and straightforward.
- Assess the practices of risk management and safety measures of the workplace
The companies should provide technical guidance for the employees who need to handle complicated equipment and machines or dangerous chemicals when working. The auditors (Also see Essential Audit Objectives for Payroll Audits) should also make sure that reporting processes of workplace safety the company is using is following the applicable regulations.
- Keep track of the processes of employee record keeping
The auditors (Also see Introduction to Audit) need to make sure that these processes the company is implementing follow the laws and regulations about the contents of the personnel files of the employees. The company should also research the regulations on employee’s access to those documents to make sure that its policies follow those rules.
- Compile information regarding benefits and compensation
Auditors should make sure that the company is appointing officers who understand ways to apply the standards and are qualified to manage confidential records about the medical information of the employees. They should also review the company’s salary practices to make sure that it follows applicable minimum wage law as well as assess the classification of employees whether their status is exempt or non-exempt.
- Assess employee relation processes
Auditors should do so to identify whether the employees believe that the company is handling workplace (Also see Audit -Checklist for Workplace Audits) investigations in a way that it will appoint human resource personnel who is specifically trained to manage sensitive issues. The management and business owners (Also see 6 Accounting Tips For New Business Owners) should not underestimate the importance of maintaining excellent employee relation as the issues regarding it can sometimes cause costly lawsuits. Hence, companies should manage their processes of investigation and resolution so that they can minimise their liabilities due to claims regarding biased employment practices.
- Examine the opportunities of training and employee development
This is for the auditors to uncover any discrepancies in the training accessibility and methods for the employees. The companies should at least provide new employee orientation and essential training about workplace policies to the newcomers.