Workplace audits refer to methods of assessing a wide range of procedures and policies in human resources as well as other parts of an entity. Such audits aim to determine areas that an organization needs to improve and help to ensure the business owners (Also see Characteristics of Successful Business Owners) to be following the employment laws and regulations. Typically, the auditors from audit firms in Johor Bahru will perform the workplace audits by using the checklists so that they may ensure that their audits cover the essential points which need attention.
The Process of Hiring
Hiring and orientation are among the first areas that the auditors (Also see Introduction to Audit) should include in the workplace audit. In the hiring process, the employers may need to write a job posting, interview the applicants, conduct pre-employment screenings, assess their skills, carry out drug testing, as well as present the job offer. Also, employers need to regulate the hiring process with equal opportunity and anti-discrimination laws. Auditing (Also see Principles of Auditing) the hiring and orientation process makes sure that the company adheres to the employment laws by checking the advertisements and the questions the employer has asked in the interview.
Compensation
The workplace audits will reveal the areas of opportunity in compensation structures in a company. In some countries, the authority may demand the employers to pay non-exempt employees a minimum wage and one and a half times of their pay rates if they work overtime. A workplace audit identifies whether the salaries, bonuses as well as other benefits that the employees obtain meet the standards. Besides, the auditors will determine whether the workers who perform the same tasks receive the same salary as required by law in the workplace audit.
Performance Evaluation
When the auditors carry out the workplace audit, they need to review the company’s process of performance evaluation. Usually, the employers will issue performance evaluations of their employees yearly. In the audit, the auditors should determine the aspects which are subjected to labour regulations and evaluate them. As an instance, the performance evaluation must adhere to privacy and discrimination laws. This means that the workplace audit should reveal the areas that the process of performance evaluation may violate the rights of the employees regarding their gender, race, religion, disability, or other characteristics.
Termination
A company can hardly exempt itself from employee turnover and termination. Nonetheless, unjustified termination is a critical legal issue. Companies can prevent themselves from committing wrongful termination by engaging with the auditors to perform a workplace audit to assess the termination procedures (Also see Techniques and Procedures of Internal Audits) that it is implementing. By conducting the audit, the auditors will make sure that the company is acting within the scope of the law when it notifies a worker about his or her termination and informs the worker about the benefits that he or she may obtain if there is any.