HUMAN RESOURCES ASSESSMENT
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1 HUMAN RESOURCES ASSESSMENT Company Name Executive Contact Address HR Contact Phone Other Key Contacts Fax Date of Assessment Auditor 1
2 Human Resources Assessment Sample of materials typically reviewed/discussed: Organizational Chart/Reporting Structure Employment Application New Hire Processing Forms Materials used in the New Employee Orientation process (whether formal or informal) Employee Handbook/Policy and Procedure Memos Job Descriptions Listing of employees positions/titles, work status, FLSA classification, (Exempt/Non-Exempt, hourly or salaried), and wages Wage/salary grades and/or ranges Performance Appraisal Forms Benefit Communication Pieces Benefit Administration Processes/Tools COBRA Documents HIPAA Documents Counseling/Disciplinary forms FMLA forms (Employee Request, Employer Response, Medical Certification Statement) Ads for open positions (previously placed in newspapers) OSHA 300 Logs Employee Files Includes files of active and terminated employees, as well as, one or two of employees who have had a disciplinary problem, or been terminated for cause. Exit interview reports I-9 s Bulletin board(s) where State and Federal notices are posted 2
3 DESCRIPTION OF ORGANIZATION # of Employees # of Management Staff # of Locations (addresses) Briefly describe your business Describe your typical client How long has your organization been in business? Is the organization unionized or do you believe there is any threat of unionization? Can you describe the culture you have or want to have in your organization (Your leadership style)? How would you describe the current state of Human Resources? 3
4 How would you describe current morale? If poor, what are the reasons? How strong is your management staff on a scale of 1 to 10? What are your most pressing business issues right now? Any specific HR issues or problems or pending litigation? BUSINESS and/or STRATEGIC PLAN (MISSION, ETC.) If you have a plan is it written or informal? How was it developed? How is it used on a day-today basis What timeframe does it cover? How and how widely is it communicated? Does it include any specific goals relative to HR? Does your organization have a HR Strategic Plan? Has the organization done workforce planning, etc? 4
5 COMMUNICATION Describe the most common method of communicating amongst the staff Do you consider your organization to have an open door policy? Does the company hold all employee meetings? If yes, are they mandatory? Is there a formal suggestion process? Do you have/maintain bulletin boards? Is there a Company Newsletter? When information needs to get to all employees, how does this happen? On a scale of 1 to 10 how open is your communication to staff about business issues? Have you ever done an employee attitude survey? If yes, when and what were the results? SUCCESSION PLANNING Has the organization done succession planning or discussed the need for it? 5
6 Are there several key people in same age bracket? If the owner/president of the organization would die suddenly, is the organization in a position to continue to operate? Is there a formal career development process for management or employees in general? EMPLOYMENT PROCESS Describe your normal recruiting process for me. Do you allow applicants to put SEE RESUME on their application? Are all employees required to complete an employment application When was your application last revised? By whom? How long do you retain applications? If retained, how are they stored? Do they include reference checks, interview notes, etc. Do you accept resumes at any time or only when openings are available? RECRUITING Who approves new hires (additions to staff and/or replacements)? 6
7 Does a job requisition form exist? What recruiting sources are typically used? (Agencies, head hunters, direct recruit, employee referrals, networking) How effective are these sources? What are the criteria used to judge effectiveness? Do you have an internal posting process (formal or informal)? How effective is the posting process? Do you contact colleges, technical schools? Do you utilize the internet as a recruiting tool? Who is involved in typically involved in the interview process? Have they been trained? Do you document interviewer s ratings? How many openings do you have currently? How long have these positions been open? What is the average time to fill a position? Overall how effective and timely is the process? Do you conduct any pre-employment skill tests? If yes, for what skills? Reference Checking &Job Offers do background and/or 7
8 credit checks? If yes, are the proper releases obtained? Do you confirm degrees and/or professional certifications? Do you check former employer references? If yes, what info do you solicit? (Dates, compensation, position, reason left) Are offer letters used to confirm employment offers? If yes, for what positions? (Request a copy to review later) provide reference information previous employees? If yes, is a signed release required? enter into employment agreements? If yes, with whom? PRE-EMPLOYMENT TESTING (Drug, physical, skills testing) Does your organization require pre-employment drug tests and/or physicals? If yes, are they scheduled before or after the offer is accepted? Are they required for all new employees? If not, who is? require any other type of testing? (job skills, psychological profile, honesty test, etc.) 8
9 Are the results of any these tests used to deny employment? If yes, which? Have the tests been validated? If yes, how and by whom? Do you drug test if you are suspicious an employee is under the influence? If yes, do you have a written policy? Do you drug test following a work-related accident? Where are results of these tests kept and who is informed of results? Does your organization have a Random Drug Testing program? NEW EMPLOYEE ORIENTATION Is there a formal process and is it documented? Is it customized to the organization? When was the last time it was updated? Do all employees participate? Is it a single occurrence or more than one phase? Are job descriptions & performance appraisal forms parts of the 9
10 process? Has feedback ever been solicited to assess the effectiveness of the process? Is a new employee checklist utilized and signed? NEW HIRE REPORTING ADP does this basics separate tools for tracking Performance Who is responsible? How soon after hire are new hires reported? Is the information faxed or mailed? Is this documentation retained? Where? INDEPENDENT CONTRACTORS Do you have independent contractors doing something similar to what your other employees do? (MIS staff, but also have an Independent Contractor that is an MIS person) If yes, does the individual make independent decisions 10
11 Does the individual have other clients? Does the individual have a tax I.D. number? Does the individual set his/her own schedule? Do you provide office space and office equipment to the individual? Is the company aware of the implications of utilizing independent contractors who do not meet the IRS guidelines? JOB DESCRIPTIONS Do all positions have current job descriptions? Do you believe they are an accurate representation of job responsibilities? Do all employees have a copy of their own description? Is the incumbent asked to sign the job description? How are the descriptions developed? Is there input from the incumbent? 11
12 How and when are descriptions updated? Do they contain revision dates? Are job descriptions included in the performance appraisal process? Are the descriptions ADA compliant? Do they include the essential functions, physical requirements, working conditions, etc.? Are job descriptions utilized in recruitment process? EMPLOYEE HANDBOOK have an employee handbook? If yes, whom was it written by? When was the last revision date? Does it include standard provisions (Harassment, benefits, COBRA, work hours, compensation, etc.) Do all employees sign an acknowledgement? Where is it retained? Are new policies also acknowledged? Has the organization ever solicited feedback from employees on the handbook? 12
13 On a scale of 1 to 10, how happy are you with your current handbook? SUPERVISOR S HANDBOOK have a Supervisor s Handbook? If yes, when was it last revised and by whom? HR POLICY MANUAL YES NO have a HR Policy Manual? If yes, is it current and have previous versions been collected and/or destroyed? Does it include a specific harassment complaint procedure? Does it include an electronic communication policy? Does it include an employment policy? Recruiting policy? Attendance policy? Performance Appraisal Policy? Drug/Alcohol policy? Violence in the Workplace policy? Work Rules or Code of Conduct? Progressive Discipline policy? Wage/Salary Administration policy? 13
14 Promotion, transfer and posting policy? Leaves of Absence policy? Severance policy? Pregnancy/Disability policy? Privacy policy? Smoking policy? Attire and/or professional dress policy? Complaint Resolution policy? Employment of Relatives policy? Conflict of Interest and/or Confidentiality policy? PERFORMANCE APPRAISAL SYSTEM Is there a formal performance appraisal process and is it documented? Are appraisals scheduled on a regular basis? If yes, what is the timeframe? have a stated Introductory (probationary) period? If yes, what is its length? Have supervisors been trained in providing performance feedback? Are there standardized forms utilized? If yes, are all employees evaluated using the same form? Are performance factors/criteria the same for all employees? 14
15 Do employees receive a review following or during their introductory period? Do you believe your evaluations are objective and do they reap the desired results? Does your system evaluate the specific behaviors your organization needs to be successful? Are appraisals completed on time? How and where are appraisals retained? Has the organization ever analyzed it rating experience? (i.e., are all employees rated similarly regardless of performance ) Is there any check for rater bias or accuracy of appraisals? Are supervisors held accountability for ontime and constructive handling of the process? DISCIPLINE, DISCHARGE & TERMINATION have a formal progressive discipline process? What are the most common reasons for discipline within your organization? In the past two years, how many terminations have been involuntary? Are performance standards communicated to 15
16 employees? If so, how? Are supervisors trained on conducting disciplinary actions and terminating employees? Does any other member of management or Human Resources review disciplinary action before it is taken? Does any other member of management or Human Resources witness terminations? Are employees allowed to resign rather than being terminated? Are terminations conducted in private? Typically, how are benefits and unused vacation handled in a termination situation? Is a termination checklist utilized? Has the organization ever presented an early retirement program or provided incentives for voluntary terminations? TRAINING budget specific dollars for employee training? Has the organization conducted a training needs analysis? 16
17 How are decisions made about training? Are training needs or career development addressed in an individual s performance appraisal? Does the company offer programs in-house? If yes, are the programs presented by outside providers? support attendance at off-site workshops, conferences and seminars? have a tuition reimbursement program? If yes, please describe. Are attendees asked to evaluate the program? Is a training record maintained on each employee? If yes, what is the process? COMPENSATION have a formal compensation system or structure? Does the system include salary grades? If yes, how are they developed? If external salary data is utilized, what criterion does the organization 17
18 focus on, size, location, sales/revenue, etc.? Is competitor data available? Is it pertinent? budget annually for merit increases? If yes, how is amount determined? How are hiring wages determined and by whom? How are increases determined and by whom? How often is the system reviewed or updated? pay overtime? On what basis and who is eligible? How is eligibility determined? If an employee works on a Sunday or Holiday, how is overtime paid? How much salary information is shared with employees? Why? How do you decide if an employee is exempt or non-exempt? If an employee is promoted, how is a salary decision made for the individual? What is the decision based on? Are excellent performers rewarded at a significantly higher level than average performers? 18
19 What was the range of increases in the last year? (1 to 5% or 1 to 20%, etc.) have a bonus or incentive plan? If yes, how does it work? provide comp time? If yes, on what basis? How does the organization track vacation and time off for exempt staff? BENEFITS What is the waiting period for benefits? Is it the same for all benefits? Are different benefits or level of benefits provided to different classes of employees? If yes, explain Health Insurance Cost sharing Deductible General description of coverage Dental Insurance Cost sharing Deductible General description of coverage Life Insurance General description of coverage LTD General description of coverage 19
20 STD General description of coverage Vision General description of coverage offer a Profit Sharing and/or Pension plan? If profit sharing, what are contributions based on? offer a 40l(k) plan? If yes, does the plan include an employer match? offer a Section 125 plan? Does it include reimbursement for day care? Is it a Premium Only plan? Does it include an account for unreimbursed medical expenses? What is the organization s vacation policy? Holiday policy? Paid Sick Time policy? offer an Employee Assistance Program? What is the policy on Funeral Leave? offer any wellness benefits? 20
21 offer any type of Recognition or Service Awards program? PART TIME Benefits offer benefits to parttime employees? If yes, how many hours must they work to be eligible? What is the Time Off policy? What insurance benefits do they receive? Are they eligible to participate in the 40l(k) plan? How does the organization monitor ERISA compliance? (Employee Retirement Income Security Act qualified plans only) Overall how satisfied are you with your benefit package? How satisfied do you believe your employees are? TURNOVER DATA Do you know what your turnover has been in recent years? What are the most typical reasons employees leave your organization? What is the average tenure of employees who leave the company? Does the company do exit interviews? 21
22 Is turnover a significant problem for your organization? COMPLIANCE WITH FEDERAL AND STATE LAWS Do you believe that you have all the proper State & Federal postings displayed in appropriate locations? have completed I-9 s on file for all employees? Are I-9 s completed within 3 days of hire for new employees? employ any disabled individuals or those who have had an incidence of cancer, AIDS, emotional illness, etc.? Are you aware of the requirements of the Americans with Disabilities Act? (15 or more employees) Is the organization familiar with its responsibilities under the Family & Medical Leave Act (FMLA)? Are they being fulfilled? (50 or more employees) 22
23 Is the organization familiar with its responsibilities under COBRA? Are they being fulfilled and by whom? (50 or more employees) Is the facility accessible by applicant in wheelchair? employee any individuals under the age of 18? If yes, are you familiar with child labor laws? How man women and/or minorities do you have in management positions? How are you currently handling requests for maternity leave? Are disability benefits provided for other illnesses and/or accidents? Do you believe the organization has any sexual harassment issues? (Jokes, pictures, posters, dating amongst employees, females in traditional male occupations, etc.) 23
24 What is the organization s philosophy about diversity in the workforce? Has any training been presented? Have there been any discrimination or harassment charges and/or lawsuits in the past? If yes, what were the circumstances and/or outcomes? Has the Federal government ever audited the organization? If yes, what were the circumstances and/or outcomes? AFFIRMATIVE ACTION PLAN Does your organization have government contracts in excess of $50,000? If yes, do you have an Affirmative Action Plan? Who is responsible for AAP recordkeeping and preparation of the annual document? Who is responsible for completing and submitting EEO-1 and Vet-100 reports? (50 or more employees) 24
25 EMPLOYEE ACTIVITIES Does the company sponsor employee activities? If yes, what are they? What type of participation does the organization experience? (numbers and types or classes of employees) Is the organization familiar with liquor liability issues? How does the organization limit its exposure? UC CLAIMS How does the company handle unemployment claims? Who is responsible? What is a typical number of claims? What has been the organization s experience in challenging and winning claims? WORKER S COMP/SAFETY Although not conducting a safety audit, how are work related injuries handled? Is there an incident form utilized? 25
26 Does an internal investigation process exist? Who maintains OSHA logs and determines if an injury is recordable? Are logs posted throughout facility in February? offer modified or light duty available? have a formal safety program? If yes, who is responsible? What types of safety issues does the organization have? Is personal protective equipment necessary? If yes, what types? utilize hazardous materials or chemicals in the process of business? (Material Safety Data Sheets MSDS) Are there any specific blood borne pathogens concerns? Are forklifts utilized? Has training been provided? Are there lock out / tag out issues Is the organization required to comply with Department of Transportation regulations? 26
27 have an emergency action plan? (Fire, tornado, medical emergency, evacuation, etc.) have a Chronic and Life Threatening Disease policy? EMPLOYEE FILES Number of Files reviewed? ACTIVE TERMINATED DISCHARGED Are there individual or multiple files for each employee? What are typical contents of the files? How are files stored? What are retention practices for terminated employee files? Is medical information maintained separately? (Drug screens, physical results, work releases, insurance information, etc.) Are I-9 s filed separately from all other information? Limits liability and exposure during an audit. Does the company track expiration dates of I-9 documents? Are I-9 s of terminated employees removed from the active file(s)? 27
28 Is outdated material removed periodically? Does a written policy exist regarding requests from former or current employees to view and/or copy their file? Who has access to employee files? CLIENTS WITH MULTIPLE LOCATIONS Are Human Resources functions centralized at corporate? Are all policies designed and interpreted by the corporate office? Are location managers trained on the interpretation and application of policies? Does management at individual locations have the authority to modify policies based on their operational or geodemographic needs? How are these modifications approved? 28
29 Does corporate have a process by which it is notified of any modifications? Does management at individual locations have the authority to create local policies? How are these policies reviewed and approved? Who has the authority to make exceptions? 29
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