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An HR Audit
Department Organization Questionnaire
The Human Resources Department is structured, organized and equipped to
provide overall strategy, direction and effective management of the organization’s
human resources function to accomplish organizational objectives.
1. Is there one department or function within the organization that is responsible
and accountable for planning, establishing, overseeing and coordinating all
human resource policies, systems and services for all 11 major categories?
2. Does the senior-level human resources manager report to the same level
position as all other major staff and line departments within the organization?
3. Does the senior human resources manager participate in addressing the
organization’s strategic, tactical and policy issues?
4. Does the senior human resources manager integrate all HR activities with the
organization’s strategic business plan.
5. Does the Human Resources department demonstrate a clear understanding of
organizational and customer needs?
6. Are HR services and functions aligned and prioritized to organizational and
customer needs?
7. Has a department mission statement been developed explaining its purpose
within the organization?
Has this mission statement been communicated to all management personnel?
Has this mission statement been communicated to other customers throughout the
organization?
If so, to whom?
How?
8. Does the Human Resources department take a lead in striving for a more
empowered and participative work force (productivity improvement, cost
reduction, quality improvement and improved quality of work life programs?)
9. Has a Human Resources department organization chart been published and
distributed?
If so, to whom?
Does the organization chart clearly define functional responsibilities and whom
customers can contact for service?
10. Are job descriptions established for all HR personnel stating major job
objectives, responsibilities and accountabilities?
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11. Do all HR personnel understand their respective roles and relationships to
others in the department?
12. Are department personnel cross-trained to perform duties outside their major
areas of responsibility?
13. Do they work on team and department task force projects?
14. Are departmental personnel professionally and technically competent?
15. Do they serve as internal consultants to management as well as counselors to
employees?
16. Does the department staff work well as a team?
17. Are they readily accessible to all customers?
18. Are department personnel provided adequate training and professional
development to meet organizational challenges and demands?
19. Is involvement in professional and technical groups encouraged?
Does the department subscribe to major technical and professional journals?
20. Is there a credible performance appraisal in place clearly stating mutually
established goals and objectives for department personnel?
21. Are human resources staff compensated according to market standards?
Are they compensated based on comparable positions within the organization?
22. Does department staff effectively balance organizational with employee needs
and act as an intermediate for both?
23. Is the Human Resources department results-oriented (., measuring cost-
effectiveness and the bottom line results of human resources programs)?
If so, is it attentive to the bottom line and does it demonstrate a business
orientation?
24. What is the span of control of the top position within the departments (.,
how many and which positions report to it)?
Are supervisors or managers reporting to other mid-level managers?
How many employees are in the Human Resources department?
What is the ratio of HR department staff to all employees served?
How does this compare to the staffing levels of other comparable organizations
offering similar services?
25. Are HR needs and programs accounted for in the organization’s budgeting
process?
26. Does the organization make plans for ensuring that HR’s future needs are met?
27. On a scale of one to seven (seven being the highest and four being adequate),
how would the Human Resources team rate the overall effectiveness and
structure of your Human Resources department?
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28. On the same one-to-seven scale, how do you think other department heads
would rate the overall effectiveness and structure of the HR department?
On the same one-to-seven scale, how do you think the employees would rate the
overall effectiveness and structure of the HR department?
Explanation of Department Organization Questionnaire
For each of the 11 categories, the Self-Audit questions are designed to rate how
well the HR department achieves the purpose of the category definition stated at the
top of the questionnaire: Is the HR department structured, organized and equipped to
provide overall strategy, direction and effective management of the organization’s
human resources function to accomplish the organization’s objectives?
Questions one through nine explore how department leaders achieve organization
objectives, are part of management’s strategic planning effort and assist in making
decisions that affect bottom-line results. These questions both help ensure that HR’s
efforts are in accord with customer needs and suggest ways HR teams can take the
lead in helping customers get the most out of the organization’s human resources.
Questions 10 through 26 address communicating department functions and services
to all customers, staff objectives and internal relationships, staff’s dual role as internal
consultants to management and counselors to employees, staff competence and
flexibility, cross-training, balancing employee needs with business needs and a
bottom-line results orientation.
The components of question 24 also relate to staff size, structure and span of
control. Industry-specific standards for staff size are available from a variety of
professional publications, such as the Saratoga Institute’s "HR Effectiveness Survey"
and national and regional statistics compiled by the Bureau of National Affairs
(BNA). Any surveys that relate specifically to your type of organization will make
that benchmark more credible.
Questions 25 and 26 address resources and planning to ensure the delivery of
required services.
Human Resources Planning/Organizational Development Questionnaire
The process of identifying and providing ways to fulfill the organization’s
developmental and human resource needs.
1. Is there one position accountable for reviewing the organization’s human
resources requirements?
2. How is this review carried out?
Formally/informally? (please describe)
3. How often is this analysis updated (., yearly, every two years, three years or
more)?
4. Do your projected needs include the following considerations?
Availability of outside workforce demographics (age, sex, minority classification,
education, skills level, occupations, etc.)
Anticipated changed in your organizations technology, processes, products/services
and markets.
Personnel needs these changes will require (. new skills, education, knowledge
and abilities).
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5. Which sources outside the organization provide these demographics?
6. What sources within the organization provided this information?
7. To whom are these projections communicated?
How often?
How far into the future?
8. Is there one position accountable for reviewing and assessing the HR
department’s skills, education, interests and needs?
9. How is this assessment carried out (formally or informally)? (Please describe.)
10. How often is this assessment updated (. yearly, every two years, three or
more years)?
11. To whom are this assessment and any projections communicated?
How often?
How far into the future?
12. Are this assessment and projections used for training and development?
13. Are this assessment and projections (workforce requirements) used for career
planning (matching organizational and individual skills, abilities and needs)?
14. Is there a formal career planning process in place?
15. Is there a career counseling system to identify individual skills, interests and
needs, and which offers inplacement and/or developmental assistance?
16. Are high-potential employees identified for key positions?
If yes, is there a succession plan to target high potential employees?
17. Are human resource projections (., numbers, job classifications, skills,
knowledge, ability and education levels) identified in the recruitment plan?
How far into the future?
18. If the human resources plan calls for restructuring or downsizing, are there
strategies set to deal with displaced employees?
Is outplacement assistance offered?
Are there strategies to support remaining employees?
19. Are the human resources projections a part of the organization’s budgeting
process?
20. Does the organization have plans for ensuring its development and human
resource needs are met?
21. On a scale of one to seven (seven being high and four being adequate), how do
you think the HR staff rates the human resources planning/organizational
development process?
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22. On the same one-to seven scale, how do you think other departments would
rate the human resources planning and organizational development process
now in place?
Explanation of Human Resources Planning/Organizational Development
Questionnaire
Affirmative answers to all the questions in this section means the organization’s
development and human resource needs are being met. The emphasis is on connecting
organizational development and workforce need projections with internal and external
workforce skills.
Questions one through seven deal with influences on the planning process)
changing workforce, markets and customers, products, services, technology/skills
base and identification of external supply).
Questions eight through 17 deal with internal assessment and availability of these
same considerations: organizational development activities in management
development, training, career and succession planning to satisfy workforce demands
within the organizations. If the internal labor supply is greater than the need, then the
tougher issues of resource reallocation have to be addressed (questions 18 and 19).
Human resources planning is particularly important for emerging, rapid-growth and
high tech businesses. Mature businesses in need of new products, services, markets,
acquisitions or divestitures must also plan to identify, attract or reallocate the talent
necessary for revitalization and continued competition.
Here’s a little piece of information about that technological revolution, a headline
from an article reporting on a study by Worldwatch Institute back in 1980: Micro
Electronics Seen Producing Sweeping Industrial Change. That’s certainly old news
about the future, but there’s a reason to go back to this story to remind us they told us
what was going to happen. Most of us just didn’t pay attention.
Recruitment and Selection Questionnaire
The process providing timely recruitment, selection and placement of high-quality
employees to satisfy the organization’s staffing requirements.
1. Is there a policy in place stating the organization’s philosophy on recruitment
and selection?
Does the policy contain procedures to guide managers through the recruitment and
selection process and describe how to get help?
2. Is there one position within the organization accountable for overseeing and
coordinating recruitment and placement?
RECRUITMENT
3. Is there a formal process in place for identifying job vacancies?
4. Briefly describe the process from needs identification through final approval
authorization.
5. Is recruitment done proactively from a planning mode (., projected
workforce plan) as well as reactively to immediate replacement and new job
openings?
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Is recruitment linked to human resources planning (projected workforce
requirements)?
6. Is a job analysis conducted for each position?
Does the job analysis accompany the hiring authorization?
Does the job analysis accurately identify the key objectives and responsibilities of
the position?
Does the job analysis accurately identify the essential ‘can do’ skills needed (.,
skills, abilities, knowledge, education and experience)?
Does the job analysis accurately identify the essential ‘will do’ skills needed (.,
leadership, interpersonal, entrepreneurial, communication and good attitude)?
7. Is consideration given to internal candidates for all or some job openings
before outside recruitment begins?
If some positions are determined to be filled from within, how is this determination
made?
8. Is there a formal job posting procedure in place?
If so, does the job posting contain the job objectives, needs and requirements cited
in the job analysis (#6 above)?
9. Are recruitment strategies (methods to obtain qualified candidates) set before
active recruitment begins?
Who participates in the strategy development?
Does this strategy include affirmative action and diversity needs?
10. What kind of recruiting sources does your organization use and for what positions:
Newspaper sources?
Professional journals/periodicals?
College recruiting?
Special events recruitment (., job fairs and expos)?
Community referral agencies (., state employment and training offices)?
"Quasi-search" methods (., hourly rate paid to recruiting professionals for
targeting candidate sourcing or use of professional candidate researchers)?
Employee referral?
Internal computerized applicant database?
Professional networking (., associations)?
Direct mail recruitment?
Personal networks (., local competitors, customers, suppliers, outplacement
firms or industry research)?
If so, please give examples:
11. Does your organization measure the effectiveness as well as the costs of these
recruiting sources?
12. To whom are these performance measures and recruiting costs communicated?
SELECTION
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13. Does the HR department perform all initial screening of candidates?
14. Are candidate telephone interviews, teleconferencing or video screening
conducted before personal interviews?
15. How many candidates are typically interviewed before filling a position and at
what levels?
16. Who participates in the interview and at what intervals?
How many people are typically involved in the interviewing process?
Are panel interviews used?
Who makes the final hiring decision?
17. Are hiring managers trained in objective selection (., interviewing
techniques, position-related questions and legal implications)?
18. Are reference checks conducted on all candidates?
Who performs the reference checks?
19. Are tests or personality profiles used in the selection process?
Are they professionally validated?
20. Are drug tests administered to all new employees as a condition for hire?
21. Does the organization compare the number of job openings and workforce
projections with the HR department’s recruitment and selection capacity?
Are peak and low hiring cycles identified?
22. Has the organization examined or evaluated any of the following alternatives
to satisfying workforce requirements:
Project or contract outsourcing?
Temporary placement?
Internal temporary placement pool?
Part-time employment and job sharing?
23. Are all employment costs accounted for in the organization’s budget?
24. On a scale of one to seven (seven being the highest and four being adequate),
how do you think the HR team would rate the effectiveness of the recruitment
and selection process?
25. On the same one-to-seven scale, how do you think departments would rate the
effectiveness of the recruitment and selection process?
Explanation of Recruitment and Selection Questionnaire
The purpose of the Recruitment and Selection questions is to improve critical
staffing needs in a timely manner and with quality candidates.
Questions three through 12 examine how the company attracts job candidates.
Question ten deals with finding candidates. Cost-benefit analyses of all hiring sources
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(questions 11 and 12) will tell you where to place your recruiting energies and
financial resources.
Questions on the selection process (13 to 20) may be more important to
government agencies and contractors because of highly regulated selection criteria,
affirmative action and diversity implications. Fiscal constraints and regional
preferences may also restrict government staffing professionals to the most
inexpensive sources, regardless of their results.
What makes a successful manager is the ability to influence positive behavior and
to hire the best talent. HR professional counseling, guidance and training on effective
interviewing and selection are essential to help managers make the right hiring
decisions. It is also essential that the selection criteria be equally and consistently
applied to all applicants.
Companies’ efforts to reduce both their workforce and their fixed labor costs have
resulted in less costly ways to satisfy workforce requirements. These include
outsourcing and temporary workers, which transfer costs on a variable basis. This is
why Manpower, Inc. has become the largest employer in the . today. If your
organization uses these methods, be aware of possible long-term quality problems
resulting from reduced commitment and lack of company pride.
Compensation Questionnaire
A system of evaluating jobs and compensating employees to ensure that the
organization attracts, retains and motivates employees to accomplish organizational
objectives.
1. Does the organization have a policy clearly stating its position on employee
compensation?
Is this policy linked to the organization’s management philosophy on compensating
employees, and does it reinforce the values of the organization?
Is the organization’s compensation philosophy clearly communicated to all
employees?
Is it clearly supported and monitored by management?
2. Does the compensation policy contain procedures to guide managers on how
to implement the compensation system?
3. Is there one position within the organization accountable for overseeing and
coordinating all compensation-related activities (job evaluation, job
classifications, job descriptions, salary administration, performance appraisal
and compliance with all governmental pay regulations, including FSLA, ADA,
compensable time and EEO regulations)?
4. Is there a process for keeping the organization aware of compensation paid for
comparable job functions in the region?
Compensation paid to comparable exempt job functions nationwide?
Compensation paid to comparable exempt job functions industry-wide?
How frequently are there market studies performed?
5. Is your pay plan in agreement with the compensation philosophy of the
organization?
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Are pay ranges wide enough so as not to force vertical pay growth?
Are pay ranges wide enough and procedures available to reward additional
knowledge, skills, abilities and responsibilities and encourage lateral career growth?
Do the intervals between ranges clearly define the differences in positions assigned
to those pay ranges?
Are pay differences great enough to ensure that a subordinate is not paid more than
his or her supervisor, including overtime payments?
6. Are all jobs classified using a consistent job analysis?
7. Are all job classifications reviewed for gender and minority equity?
Are all comparable jobs reviewed for possible evidence of uneven treatment for
females or minorities?
8. Does your organization have an employee performance appraisal system?
Does the performance appraisal establish clear objectives, expectations and
performance measurement criteria linked to that specific job?
Does the performance appraisal provide objective, interactive and meaningful
feedback on performance?
Do performance objectives clearly support departmental and organizational
objectives?
Are these objectives and measurement criteria discussed with the individual being
appraised?
Do the employees have clear and direct control over the outcome of their
appraisals?
Do performance appraisals reflect an employee’s positive behavior, as well as
results?
Do performance appraisals include a written plan to improve employees’
knowledge and skills?
Are pay plans linked to rewards for measured performance?
Is the performance rating/pay adjustment reviewed by someone in a position higher
than that of the rater before discussion with the employee and implementation?
9. Does your organization have a pay-for-performance (merit-based) system?
Does it work as intended, or is it a tool for compensation adjustment?
Does an outstanding performance merit an outstanding reward?
10. Are compensation increases budgeted throughout the organization and are
guidelines for distribution clearly communicated?
Are ranges and limits clearly defined (., pay increments linked to performance
measures)?
Is distribution of compensation among departments reviewed by management for
consistency and equity before awarding increases?
11. Are other performance compensation awards (results sharing) appropriate and
in place?
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Profit-sharing awards based on organization-wide profitability.
Special recognition awards, ., bonuses for meeting a combination of results
criteria, including department contribution performance, major productivity increases,
sales and profit increases, and cost savings.
Group or team productivity based on team performance and distributed by team
members.
Gain-sharing awards based on local performance.
A special pay-for-knowledge system, ., payment for increased development of
employee knowledge, skills, abilities and/or responsibility (allowing a broader job
design without changing assignments).
15. Does your organization have the capacity for a compensation strategy to
attract, retain and motivate employees?
16. Are compensation administration costs included in the budget?
17. On a scale of one to seven (seven being highest and four being adequate), how
do you think the Human Resources department would rate the effectiveness of
the compensation system?
18. On the same one-to-seven scale, how do you think your internal clients (other
departments and employees) would rate the effectiveness of the compensation
system?
Explanation of Compensation Questionnaire
It is important for the organization to distribute a clear policy statement on its
compensation philosophy to its employees. Guidelines are important to ensure
consistency and equity in the reward systems. Compensation is probably the most
objective aspect of HR management. You should be aware of this when scoring
questions one through seven.
Compensation methods can help motivate the fulfillment of organizational
objectives. For this reason, compensation experts receive higher pay than other HR
professionals. Major consulting firms specialize in this area because compensation
affects the organization’s bottom line.
If compensation alone drove performance, companies with big payrolls would
always be the most profitable, but that isn’t the case. In fact, eliminating higher paid
positions is the trend. Compensation programs should motivate and reward people for
accomplishing organizational objectives.
Companies need to find new ways to reward individual, team and other group
performance. Reward systems should take into consideration self-directed work
teams, cross-functional problem-solving teams, matrix management, taking on added
work responsibilities and more risk taking. If the organization wants a closer
correlation between compensation and quality work, then the recognition of team
performance is critical. Questions eight through 11 deal with these incentive issues.
Employee Benefits Questionnaire
Programs by which employees receive noncash compensation to ensure that the
organization attracts, retains and motivates employees to accomplish organization
objectives.
1. Does the organization have a clear policy regarding employee benefits?
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2. Is there one position within the organization accountable for fairly and
consistently implementing employee benefit programs and ensuring
compliance with governmental regulations, such as ERISA, COBRA, EEO
and the Family and Medical Leave Act?
3. Is the organization current on competitive employee benefit practices, such as
childcare, flextime, job sharing, vacation/sick time, time-off provisions and
health plan alternatives?
HEALTH CARE COST CONTAINMENT
4. Is there a process in place to contain medical costs while offering quality
health care to employees?
5. Do you periodically gauge employee satisfaction with the benefit plan in terms
of customer service, timeliness, claim management and accuracy?
6. If employee dissatisfaction is high or costs are out of control or
noncompetitive, do you put your benefit plans out to bid?
How often does this occur?
7. Does your medical cost containment review cover the following:
A. Have you analyzed both of the following alternative health care
programs for their cost containment processes, including services
offered, accessibility, quality of care and cost?
HEALTH MAINTENANCE ORGANIZATONS (HMOS):
What are enrollment numbers for the past three years. (Rapid enrollment rates ma
result in poorer service.)
Is the HMO accredited by the National Committee for Quality Assurance (NCQA)?
Were any conditions attached to the accreditation?
What is the public perception of the HMO (has it received bad press)?
Have organizations similar to yours fared well under this HMO? (Ask for a list of
clients and call some of them.)
What are the exclusions or limitations on procedures, such as transplants,
rehabilitative procedures and mental and nervous disorders?
PREFERRED PROVIDED ORGANIZATIONS (PPOS):
In addition to all the questions for HMOs above, what is the ratio of network vs.
non-network charges?
Do employees accept the network doctors?
B. Has HR reviewed the following administrative controls:
In-house company data on premiums paid and claims processed?
Retention provisions of carriers, such as rebates or favorable rate
consideration for retention of company funds?
More favorable stop-loss arrangements with a carrier?
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Encouraging employees to report errors in medical bills?
Health-care spending accounts and changing rules?
Nonduplication of benefits instead of traditional coordination of
benefits?
Initiating a probationary period before health coverage begins?
C. Has HR reviewed basic cost management programs, including the
following:
Increasing deductibles, coinsurance responsibility or copayment
amounts?
Requiring second opinions for surgery?
Instituting pre-admission testing and certification?
Concurrent hospital stay reviews?
Closely managing chronic or costly illnesses?
Patient auditing of hospital bills?
Requiring employee plan usage data from health care
carriers/administrators?
D. Has HR reviewed employee health promotion and education
programs?
E. Has HR communicated with health care providers to review
customized plan options and cost containment measures?
8. Are the costs of employee benefits regularly calculated and compared to
national, industry and local data?
9. Are vacation and sick leave accruals analyzed for purpose as well as cost
consideration?
10. Are there programs to control absentee costs?
11. Are there programs to curb sick leave abuse?
12. Are unemployment compensation costs analyzed for cost savings?
13. Are pension plans reviewed and employees counseled on win-win pension
options that will save the organization money?
14. Does your organization offer retirement counseling to employees?
15. Are there benefits to extending the retirement age?
16. Should changes in long-term disability payments be considered?
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17. Does your organization regularly communicate the benefits it provides as well
as emphasize the company’s contribution to employee benefits?
18. Does your organization have the capacity to provide necessary employee
benefits and address cost-containment issues that affect profitability?
19. On a scale of one to seven (seven being the highest and four being adequate),
how do you think the Human Resources department would rate the
effectiveness of employee benefits programs?
20. On the same one-to-seven scale, how do you think internal clients (department
heads and employees) would rate the effectiveness of the employee benefits
programs?
Explanation of Employee Benefits Questionnaire
Employee benefits are necessary to attract and retain quality employees. Few
organizations, however are able to find new ways to contain costs and use benefits as
an incentive to improve employee productivity.
Health care cost containment is covered in questions four to seven. Aggressive
negotiations with carriers, a closer look at administrative controls and cost-benefit
analyses must be routinely carried out if an organization wants to convert high costs
into increased profits. An annual review of benefit plan vendors should be conducted,
especially for health care services which consume a large portion of expenses. The
remarketing of a benefit program, however, should take place no more frequently than
every three to five years, unless there are serious concerns about rates, service or
accessibility. More frequent remarketing of a benefit plan damages the credibility of
the employer, in terms of seeming disinterested in a long-term relationship. In an
insured arrangement, the vendor will be left ‘holding the bag’ on runout claims.
Pay particular attention to cost-management programs under question seven.
Spending more time on these details will result in better claims management.
Question 7C should answer the following questions:
1. How were charges distributed between employees, the employer and other
payers?
2. What types of services were used: hospital (inpatient, outpatient, emergency
room), physician’s services (inpatient, outpatient), lab, x-ray, durable medical
equipment, supplies, surgical center, etc. Any category labeled ‘other’ on a
report should account for no more than 5% of the total or require a detailed
explanation.
3. What types of illnesses did employees experience? There should be at least 15
major diagnosis categories used on the report.
4. What are employees’ demographics?
You are entitled to this information. By monitoring how the healthcare plan is used,
it is possible to decrease claim costs. Some negotiation with the carrier/administrator
may be necessary to obtain reports in a meaningful format.
Because health care accounts for the largest portion of most benefit packages you
should strive to raise your performance standards as an employer by applying your
business strategies to health care management. According to David W. Kempken,
Executive Director of Benefits for Chrysler Corporation, you should re-examine your
standards for plan design, administration, communication and provider relationships
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with the goal of "best practices." Nonhealth-related employee benefits, such as
vacation time, sick leave, pension formulas, retirement incentives, holidays and
unemployment compensation tend to remain untouched. There is literature which
addresses these issues. They could save your organization quite a bit of money.
Benefits can increase productivity by meeting lifestyle and family demands in a
diverse and changing work force. Daycare centers, flextime, work-at-home options,
alternate leave provisions, cash options and other benefit bartering arrangements may
improve worker productivity. The principle that a happy worker is a more productive
worker still holds. Likewise, funding benefits that do not meet the needs of the
workforce are both counterproductive and unprofitable. A . Chamber of
Commerce survey (March 31, 1995) cites useful benefit cost benchmarks: total
benefit costs as a percentage of payroll average % nationwide. Medical benefits
account for % of the total.
Employee Relations and Communications Questionnaire
This section audits programs that govern employee treatment, communications,
support systems and services that encourage greater employee satisfaction, motivation
and productivity.
1. Is there one position within the organization accountable for overseeing and
coordinating all employee relations and communications activities?
COMMUNICATIONS
2. Are there policies that state the organization’s employee relations philosophy
governing all conditions affective employees?
3. Do these policies state expected behaviors of employees?
4. Are these policies condensed into an employee handbook?
5. How and to whom is the employee handbook distributed?
6. Is the employee handbook information reviewed by legal counsel to satisfy all
laws affecting employment, personnel relations, working conditions,
employment at will, implied employment contracts and disclaimer issues?
7. How frequently is it updated?
8. Is there a formal orientation for new employees?
Are follow-up employee orientations scheduled?
9. Are employees given the opportunity to exchange information with superiors
as well as assimilate information being transmitted from the top down?
10. Are there forums that allow for regular interaction and information exchanges
between employees and management?
If so, briefly describe:
11. Are there forums in which racial and ethnic minority concerns are conveyed to
management with the intent of affecting positive changes?
12. Does your organization engage in employee opinion surveys?
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If yes, how frequently?
Do you communicate survey results to employees?
Is there a demonstrated commitment to introducing changes based on survey data?
EMPLOYEE TREATMENT
13. Are employees afforded a process where both sides of a complaint are heard
and a decision is rendered fairly?
14. Are disciplinary procedures and rules of conduct explained in an employee
handbook or other form of notice? (Remember, the purpose of discipline is to
have people behave in an acceptable way.)
15. Are progressive forms of discipline expressly cited?
Are they consistently applied?
16. Are fairly competitive employee benefit programs in place?
17. Is there a program that provides for management and employee participation
in the discipline process?
18. Are there opportunities for employee professional growth?
19. Does the organization demonstrate, emphasize and reward leadership to ensure
success and satisfaction in the organization?
20. Using a one-to-seven scale how do immediate manager practices rate in terms
of daily supervision and management of employees?
21. Has the organization demonstrated reasonable employment security?
22. Is direct compensation/pay reasonable, equitable and competitive?
23. Are employee and team accomplishments, special efforts and contributions
recognized in addition to direct pay?
24. Does the organization encourage teamwork and employee involvement?
STATISTICS
25. What is the organization’s monthly absentee rate?
Do you consider this high or low?
In what departments/areas are absences particularly high and why?
26. What is the annual turnover rate (average position replacements per year)?
Do you consider this high or low?
27. Are exit interviews conducted?
By whom?
Who is given feedback from the exit interview and how is it used?
28. Are demographics of turnover data analyzed?
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How is this analysis used?
What has management done in the past two years to reduce turnover?
29. Has the organization attempted to project future needs in terms of an increase
in working mothers, child care, single parents, elder workers, a more diverse
work force, etc.?
30. Has the organization made plans to meet its future employee relations needs?
31. On a scale of one to seven (seven being the highest and four being adequate),
how do you think your Human Resources department would rate the
effectiveness of the organization’s employee relations and communications
programs?
32. On the same one-to-seven scale, how do you think your internal clients (other
departments and employees) would rate the effectiveness of the employee
relations and communications programs?
Explanation of Employee Relations and Communications Questionnaire
This section covers employee satisfaction. This critical aspect of human resources
management is broad in scope, complicated and difficult to measure. Since almost
half of our waking hours are spent at work, an interesting and pleasant work
environment is essential to retain quality employees.
The questions in this section are designed to help you understand and deal with
intangible employee relation issues. These include communication, how employees
are treated, support systems and those conditions of employment conducive to
employee satisfaction, motivation and productivity. Three major issues are covered
here: (1) communication, (2) employee treatment and (3) statistics as a gauge of
employee satisfaction.
Policy statements, newsletters, bulletins, messages and information handbooks help
the employer communicate with the employee. The employer’s willingness to commit
to its philosophy in writing sets the stage for a candid dialogue. A standard of
openness displays a sense of trust. While employees may not read every word, these
communications help the employee identify with the company and its success.
Most important in this section are the responses to questions nine and ten. It is
important for your organization to have scheduled an interaction with employee
groups and representatives for discussion of issues of mutual concern.
How the company treats employees is certainly important to them. It is also crucial
to the organization’s well-being. Bad or inconsistent treatment is the number one
cause of voluntary turnover. Money can’t compensate if basic human needs, such as
dignity, respect, justice and social interaction, are lacking. An increase in work hours,
coupled with a decrease in the quality of work life, loyalty and security issues, is
responsible for a resurgence in union membership. The unionization of white-collar
employees and frontline workers is increasing, particularly in services, such as
government, hospitals, insurance and financial firms. How the employees are treated
should be of utmost concern to you.
Policy guidelines help managers make decisions concerning specific workplace
issues. From the employer’s point of view, personnel policies and procedures which
guide managers to do their jobs better are extremely valuable and help the
organization achieve its objectives.
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Personnel Policies/Workplace Rules Questionnaire
Statements of guiding principles intended to translate organizational objectives and
means into operational terms and help managers make decisions.
1. Are there written procedures governing all conditions of employment and
policies clearly stating the organization’s human resources philosophy?
2. Are there procedures for monitoring the organization’s compliance with
personnel laws and regulations?
3. Are there policies and procedures published and adequately communicated?
How? (please describe)
4. Is there one position within the organization accountable for overseeing the
development, coordination and distribution of these policies and procedures?
5. Do these policies reflect the organization’s desire to be an "employer of
choice"?
6. Do these policies and procedures contribute toward the organization’s mission
and objectives?
7. Do they balance empowerment of staff with sufficient controls to ensure
achievement of the organization’s mission and objectives?
8. Are managers guided by policy as they make decisions from hire through
separation of employment?
9. Are managers given the opportunity to provide input to policy drafts before
they are formalized?
10. If there are other rules outside the organization’s stated policies, such as Civil
Service rules, are they communicated to and understood by the managers?
If yes, does management periodically review such outside rules to see if they reflect
the organization’s current needs?
11. Is policy consistent in purpose, background and procedures for
implementation?
12. Are effective dates of policies cited, and do they specify any previous policy
statements they supersede?
13. Are all policies approved at the highest appropriate level of the organization
before being adopted?
14. Are personnel policies condensed into an employee handbook?
15. Is the current personnel policy manual periodically reviewed by legal counsel
to reflect new laws affecting employment, personnel relations, working
conditions, employment at will, implied contract and disclaimer issues?
16. Are new policies that may have legal implications also reviewed by legal
counsel?
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17. Does the organization regularly assess existing policies for necessary
replacement or amendment?
18. On a scale of one to seven (seven being the highest and four being adequate),
how do you think your Human Resources department team would rate the
effectiveness of the organization’s policies and procedures?
19. On the same one-to-seven scale, how do you think your internal customers
(other departments) would rate the effectiveness of the organization’s policies
and procedures?
Explanation of Personnel Policies/Workplace Rules Questionnaire
Personnel policies and workplace rules are intended to make organizational
objectives reality. They should guide managers to do their jobs better and help them
make decisions concerning workplace issues. Policies and procedures should cite their
bases and resources to help managers make informed decisions. Personnel policies
should also be flexible enough for managers to exercise discretion.
In a flattening organizational structure, policies and procedures can support
delegating decisions. They should serve as a basis for managerial direction,
accountability, consistent and effective behavior and compliance monitoring.
The policy manual should serve as a guide for the department to maintain
accountability for managing and delivering human resource services effectively. A
balance between staff and managerial controls will ensure the most likely
achievement of the organization’s mission and objectives. Principles of teamwork and
recognition of employees’ input should be emphasized as the most important
components of an effective human resource philosophy.
Here is a sample human resource philosophy.
The XYZ Company recognizes that employees are its most valuable resource. The
successful evolution of the organization depends on the support and performance of
all employees in achieving its stated mission. Accordingly, the XYZ Company will
strive to become an employer of choice by providing those programs and services
which support employees in the performance of their jobs, enhance the spirit of
teamwork and quality of life, and provide for employee well-being from hire through
separation from XYZ Company.
Equal Employment Opportunity and Regulatory Compliance Questionnaire
Policies and practices to ensure compliance with equal employment opportunity
laws and other governmental regulations as they relate to recruitment, selection,
placement, compensation and treatment of employees while enhancing the validity
and effectiveness of related personnel systems.
1. Does your organization have a stated policy covering equal employment
opportunity as well as its compliance with all applicable discrimination laws?
2. Does your organization explicitly state its position against discrimination
because of:
Race?
Color?
Sex?
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Religion?
Sexual orientation?
Physical/mental handicap or disability?
Age?
National origin?
Ancestry?
Marital status?
How is this policy communicated inside and outside the organization?
3. Is there one position within the organization accountable for overseeing and
coordinating EEO policies and procedures?
4. Is there a review process to keep the organization up-to-date regarding
regulatory issues and compliance?
5. Are job openings analyzed for job-related skills, education, knowledge and
ability requirements?
6. Are selection criteria based on these job-related requirements?
Can all hiring decisions be defended against these criteria?
7. Are all tests used in the hiring process valid?
8. Are all hiring managers trained in nondiscriminatory hiring practices?
9. Has the employment application been reviewed to ensure that it meets all
equal employment opportunity requirements?
10. Is there an internal process for employees to register complaints concerning
discrimination and harassment?
11. Does your organization have an explicit policy against sexual harassment?
Has a procedure to resolve sexual harassment claims been implemented?
12. Do you offer training to management on sexual harassment awareness and
legal requirements?
13. Does your organization conform to all provisions of the Americans with
Disabilities Act (ADA)?
Does your organization have a policy statement that prohibits discrimination
against qualified handicapped or disabled individuals?
Do your organization’s job descriptions distinguish between those qualifications,
physical requirements, duties and responsibilities which are essential and those which
are nonessential?
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Are policy manuals, handbooks, recruitment notices, job postings and
advertisements consistent regarding qualified individuals with a physical or mental
impairment of a major life activity?
Can disabled individuals apply for job openings and gain access to the premises?
Is there a review process for employee restrictions and reasonable accommodation
requests?
14. If you are a Federal or State government agency, does your organization
conform to the requirement of the Veterans’ Preference Act?
15. Does your organization have a government supplies/service contract or
subcontract of $50,000 or more in any 12-month period?
If yes, does it have an Affirmative Action Plan (AAP) in place for each of the
organization’s establishments?
16. Are all AAPs developed according to the Office of Federal Contracts
Compliance Programs (OFCCP) guidelines, including:
Affirmative Action Plan Narrative?
Workforce Analysis?
Job Group Analysis?
Availability Analysis?
Utilization Analysis?
Goals and Timetables?
17. Does your organization conduct a self-EEO/AAP audit on a periodic basis?
18. Does your organization have a hiring procedure regarding the examination of
documents to verify applicant identity and authorization to work in the United
States as spelled out in the Immigration Reform and Control Act (IRCA)?
19. Does your organization have a Federal contract or subcontract of $25,000 or
more?
20. If yes, does your organization fulfill the following requirements of the Drug-
Free Workplace Act of 1988?:
Publish a policy statement prohibiting the unlawful manufacture, distribution,
possession or use of a controlled substance in the workplace and specifying what
actions will be taken against employees who violate the policy?
Provide a copy of the policy to employees working under the contract?
Provide guidance/training on policy requirements?
Have a drug/alcohol-free awareness program?
Notify employees they must, as a condition of employment, notify the employer if
they are convicted of a criminal offense occurring in the workplace within five days
after the conviction?
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21. Does your organization comply with the requirements of the Omnibus
Transportation Employee Testing Act of 1991?
22. Does your organization provide programs for drug/alcohol rehabilitation?
23. Does your organization conform to the Family Leave Act?
24. Does your organization comply with requirements set forth in the
Occupational Safety and Health Act (OSHA)?
25. Does your organization conform to the provisions of Employee Retirement
Income Security Act of 1974 (ERISA)?
26. Has the organization assessed or met current and emerging legal issues
relating to equal employment and other governmental regulations?
27. On a scale of one to seven (seven being the highest and four being adequate),
how do you think your Human Resources department would rate the
organization’s performance in the area of equal opportunity and regulatory
compliance cited above?
28. On the same one-to-seven scale, how do you think employees would rate the
organization’s compliance performance?
Explanation of Equal Employment Opportunity and Regulatory Compliance
Questionnaire
Governmental regulations affect every aspect of personnel management.
Regulatory compliance is one of the foremost concerns in human resources
management. Knowledge of employment law provides job security to the HR
professionals who specialize in this area. Human resources management literature,
seminars and government publications cover these legal issues. Many HR
professionals--no matter what their specialty--have of necessity become paralegals.
Questions in this section have been designed to highlight pressing regulatory issues.
Emphasis has been placed on complex issues, such as the American with Disabilities
Act and the Drug-Free Workplace Act.
The HR department should review internal procedures that both address due
process in handling complaints of discrimination and harassment and encourage
training and awareness to ensure a harassment-free nondiscriminatory workplace. A
qualified senior-level individual should oversee these efforts and keep top
management informed of progress. Organizations that demonstrate genuine concern
for EEO, affirmative action and diversity issues also resolve most claims in-house.
Legal fees and ‘no fault’ settlement awards have reached outlandish proportions.
The rapid increase in claims, particularly in the sex and disability categories, has
created a backlog in the EEO Commission and forced claimants to initiate civil suits.
Aging baby boomers who are being rapidly trimmed from large corporations are
expected to launch a new wave of legal suits. They are more likely to have the
financial resources to encourage the legal community to aggressively pursue age
discrimination claims. Increased attention to compliance issues necessarily must
include self-audits patterned after the Office of Federal Contracts Compliance
Programs (OFCCP) as published in the Federal Registrar and Bureau of National
Affairs.
All organizations should find ways to prevent discrimination and harassment
claims. This section of the self-audit is critical to understanding and using regulations
to enhance both prevention and in-house resolution of claims. Proper job
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specifications and requirements, valid testing and screening techniques, equal
opportunities for all employees, consistency in employee treatment and valuing
diversity demonstrate good business management.
Training and Development Questionnaire
Programs, processes and strategies that will enable organizations to develop and
improve their internal human resources in order to optimize their contributions to
organizational objectives.
1. Is there a policy that states the organization’s philosophy on employee training
and development?
2. Is there a position within the organization accountable for overseeing and
coordinating training and development activities?
3. Is there a process for assessing the organization’s immediate training needs
and individual development needs?
If yes, how is this assessment carried out?
How often is the assessment updated?
Who participates in the assessment?
4. Is there a process to assess the organization’s future training needs?
If yes, how is this assessment carried out?
Who participates?
How far into the future are the needs projected?
5. Are job skills, knowledge and ability considered in assessing training needs?
6. Are new technologies, processes, products, services, market changes and
community needs considered in assessing training needs?
7. Are organizational issues, such as mission, objectives, cultural changes and
customer orientation, considered in training needs?
8. Are the organization’s social responsibilities and respect for diversity reflected
in training needs?
9. Are legal requirements considered in training needs?
10. Is remedial training in literacy and basic computation skills offered?
11. Are employee development plans addressed in performance appraisals or other
formal settings?
12. To whom are the organization’s immediate and future training and
development needs communicated?
How often?
13. How are all training programs and opportunities communicated to employees?
14. Are subscriptions to professional training and development journals
maintained and circulated among department members?
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Is there a reference library of training and development material for employee use?
Is there coordination of professional development material?
15. Do all training and development programs have clear objectives (For example,
in a workshop on WordPerfect, a clear objective would be: At the end of this
training, participants will be able to use the Merge/Sort feature.)?
16. How are training resources identified internally and externally?
Who is involved in the determination?
How are all training resources coordinated?
17. Are the results of training programs monitored and evaluated?
18. Is cost considered in the selection of training resources?
19. Is there a method to track training costs in terms of lost work time?
20. Does your organization measure a return on investment in training?
How do you know training is used back in the job?
21. Does the organization provide adequate capacity to meet chosen training and
development needs?
Are employees availing themselves of training opportunities?
22. Are training and development needs reflected in the organization’s budget?
23. On a scale of one to seven (seven being the highest and four being adequate),
how do you think your Human Resources department team would rate the
organization’s training and development activities and performance?
24. On the same one-to-seven scale, how do you think your customers (other
departments) would rate the training and development activities and
performance.
Explanation of Training and Development Questionnaire
The purpose of training and development is to optimize HR contributions to
organization objectives. The questions in this section focus on training needs and
objectives, address organizational issues (new products, technology, work methods
and changing skill requirements) and gauge what impact training has on the
organization’s profitability.
A needs assessment should be conducted before embarking on any training
program. Many businesses offer wonderful training programs. Attendees usually
leave invigorated and excited. Then there may be a few complaints from managers
about overtime costs and slowdowns in operating efficiency because of
"unproductive" training time. Analysis of training costs may reveal that departments
are using more expensive outside resources because their needs are not addressed by
in-house programs. Training may be seen as too expensive both in time and money.
Budgets may be cut.
To gain credibility with the customer and assume the status of business contributor,
the training and development function of the HR department must (a) clearly address
customer needs, (b) formulate training programs in collaboration with users, (c) set
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training objectives, (d) perform a cost-benefit analysis of all programs and (e)
measure results. Once credibility is established, department managers will see that
their training budgets are necessary and well used.
The choice of training resources should be cost-effective. In some cases a training
curriculum can be developed by in-house experts. For other topics it will be more
cost-effective to go outside the organization than to train someone in-house. There are
many freelance trainers with detailed subject manuals using well-developed modules
and techniques. Contract trainers have proven to be very cost-effective.
Labor Relations Questionnaire
The process that ensures and oversees fair and effective collective bargaining with
those unions representing employees and fosters positive labor relations designed to
achieve organization objectives.
1. Does the organization clearly state its philosophy on labor relations and
implement guiding procedures for managers who deal with contract and labor
relation issues?
2. Is there a position within the organization that oversees and coordinates labor
relation activities?
3. Do labor relations strategies support the organization’s business plan?
4. Is top management informed and supportive of labor management strategies
and goals?
5. Is there an atmosphere of management respect for union representation?
6. Are negotiation strategies and objectives formulated in advance of contract
negotiations?
7. Does management understand the laws that govern collective bargaining?
8. Is your labor management team educated and trained in private- or
government-sector bargaining techniques?
9. Does your labor relations staff network with professionals from other
organizations?
10. Are union officials involved in workshops, educational forums or other
interactive sessions with management to address topics of mutual concern,
such as business competition, health care costs, compensation and
organization change issues?
11. Is there a formal labor/management group to discuss issues of mutual concern
outside of the bargaining process?
If yes, does this group have a charter and regularly scheduled meetings?
Is the group trained in effective meeting skills (., agenda, ground rules,
timekeeping, facilitation and action plans)?
12. Is adequate assistance provided to managers in contract administration and
handling grievances?
13. Are managers trained in handling discipline matters, recordkeeping,
counseling skills, precedent-setting issues, etc.?
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14. Are efforts made to analyze root causes of grievances and take
corrective/preventative measures to reduce them?
15. When grievances are submitted, are they resolved in a timely fashion?
16. Are there credible efforts made to gain labor’s input and participation in
finding better ways for the organization to survive?
17. Has the organization made plans to meet its future labor relations needs?
18. On a scale of one to seven (seven being the highest and four being adequate),
how do you think your Human Resources department would rate the
effectiveness of labor relation’s performance?
19. On the same one-to-seven scale, how do you think other departments would
rate labor relations performance?
20. On the same one-to-seven scale, how do you think union officials would rate
labor relations performance?
Explanation of Labor Relations Questionnaire
The section on labor relations is important for organizations with unions. The
brevity of this section is not intended to minimize its importance. There are fewer
questions simply because fair and effective collective bargaining practices are usually
already in place. In fact, labor relations may be one of the most important categories
for the many organizations which deal with unions, such as local government and
public sector agencies and heavily unionized manufacturing companies. Most Fortune
500 manufacturing companies are unionized, and there may be good reasons why
other working environments need unions.
Management should link overall labor relations and collective bargaining strategies
to the organization’s business planning process well before company representatives
go the bargaining table. Equally important are issues of workforce flexibility and
work redesign.
Company managers should foster cooperative relations with their unions and draw
on the skills and knowledge of union leaders to achieve the organization’s objectives.
Both employer and union depend on the organization’s success and ability to compete
in the global economy.
The theme of these questions is the need to gain labor cooperation for continuous
improvement and to foster union leadership awareness and involvement in critical
cost issues. Answers should reveal mutual interests rather than adversarial positions
that have not paid off for either party over the years.
Safety, Health and Wellness Questionnaire
Programs that provide a work environment that contributes to and demonstrates
concern for employee safety, health and well-being, and that produce the economic
benefits derived from a safer work environment and healthier workforce.
1. Does the organization have a policy stating its philosophy on employee safety,
health and wellness?
Is this policy clearly supported and monitored by management?
Are there policies and procedures that demonstrate compliance with federal, state
and local regulations?
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Does the policy provide guidance to managers on implementation of related
programs?
2. Does one position within the organization oversee and coordinate safety,
health and wellness activities?
Is there a process that ensures organizational compliance with current governmental
regulations?
3. Are all aspects of OSHA regulations adhered to, such as:
The general duty clause?
General industry and vertical standards?
Recordkeeping requirements?
The right-to-know clause?
4. Does your organization have a wellness program in place?
Does it include:
A qualified wellness coordinator?
Voluntary free biennial physicals?
A health risk assessment?
A health risk assessment follow-up?
Counseling and feedback on health and lifestyle improvements?
Discussions/training on health-related topics?
Access to exercise and fitness facilities?
An evaluation of program effectiveness (measurable by reduced
absenteeism, increased productivity, reduced healthcare costs, fewer
claims, and progress against major risk factors measured in health
exams)?
Does the evaluation include a cost/benefit analysis?
5. Does your organization have an Employee Assistance Program (EAP)?
Does it include:
An analysis of problems employees exhibit that, if assisted, would
improve the organization’s bottom line (this could be determined by an
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examination of company records of accidents, benefits usage,
absences, performance, as well as by interviews with employees,
supervisors and medical personnel)?
An evaluation of the program’s effectiveness to reduce absenteeism
and accident and health insurance claims and improve performance?
A cost/benefit analysis?
6. Does your organization have formal accident prevention programs?
If so, do they include:
An analysis of work-related injuries by category, department and
location?
Formal workplace inspections?
A process to address biomechanics and ergonomics in the workplace?
Inspections that address accident causes, unsafe conditions and unsafe
behaviors?
Employee training in accident prevention and good safety practices?
Reinforcement and recognition of safe behaviors?
7. Does your organization measure the cost/benefit ratio of safety programs?
8. Does your organization engage in workplace evacuation drills?
If so, how often?
9. On a scale of one to seven (seven being the highest and four being adequate),
how do you think your Human Resources team would rate the effectiveness of
the organization’s safety, health and wellness programs?
10. On the same one-to-seven scale, how do you think your internal clients and
employees would rate your safety, health and wellness programs?
Explanation of Safety, Health and Wellness Questionnaire
This section provides a thorough review of employee safety, health and wellness
programs and methods to produce and measure the economic benefits of a safer work
environment and healthier workforce.
Questions 4 and 5 deal with the importance of employee medical surveillance,
wellness programs and Employee Assistance Programs. These programs improve
attendance, productivity and employee wellness while decreasing health care costs.
Provider promotion information emphasizes the obvious benefits of these programs.
However, by tracking your own measurements and performing cost-benefit analyses,
you can manage the return investment in safety, health and wellness more
deliberately.
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Question 6 deals with accident prevention and should receive 50% of the overall
scoring weight, particularly considering those parts of the question dealing with safe
behaviors.
