Human Resources Audit

Six Reasons to Undertake an HR Audit by Christina Stewart

We recently explained what an HR audit is: What Exactly Is A Human Resource Audit

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This week we’ll run through a few reasons why you might need one. We think of audits as “Elevated Employee Surveys” – just like with an anonymous online employee survey you get details on how your employees feel about their work, but with an audit, you also get a good picture of why they feel that way. Additionally, you get a deep look into how effectively your HR systems and HR processes are functioning. Add on to that recommendations for what steps to take in the deficient areas and you have something significantly more valuable that just an online survey.

Most companies are familiar with the concept of an audit, especially when it comes to the financial aspects of the business. However, conducting an audit of your Human Resources policies and procedures is just as valuable – as we know strong HR functions are bankable. An effective HR audit will not only help you assess the important factors for creating a financially healthy future, it can also provide insights into the qualitative aspects that impact your organization’s culture.

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Six Reasons to Conduct an HR Audit

Here are six ways an audit can provide incredible value for your organization:

1. An HR audit helps ensure compliance with important HR regulations. Staying up to speed on the latest compliance and regulations updates is critical. Whether you’re trying to avoid WorkSafeBC penalties or provide appropriate overtime compensation, an HR audit can help you ensure you’re avoiding any potential fines or penalties.

2. An HR audit helps you stay up to date with the latest employment laws and trends. The business world is changing rapidly, including the laws that govern Human Resources departments. An HR audit can ensure that you’re not only adapting to the employment law trends that are shaping today’s workplace but that you’re also up to date on the general business trends that could impact your organization.

3. An HR audit helps ensure that your employees are being paid fairly. As an employer, you need to know what fair pay should be for your employees. You also need to know how to communicate with employees regarding fair pay and compensation. An HR audit can provide insights into both areas.

4. Accurately classify your employees. As the popularity of freelance work and independent contractors has risen in recent years, so has the ambiguity on how to classify employees. An HR audit can help you determine how an employee should be classified or consider what type of hire you should make.

5. An HR audit can analyze and reduce employee turnover. Employee turnover can be incredibly costly for your organization. Whether you’re looking to capture insights through an effective exit interview or looking for ways to boost morale and improve your company culture, an HR audit can provide insights to help you reduce employee turnover.

6. An HR audit can improve organizational structure and update job descriptions. Whether you’re just starting your business or experiencing rapid growth, an HR audit can help you evaluate and improve the people, processes, and procedures you use to run your business. An employee handbook is a foundational element for businesses just starting out. As your company grows and evolves, an HR audit can help you re-assess job descriptions in the same way you evaluate finances and budgets.

Enhance the Processes & Procedures Impacting Your People

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Whatever specific challenge (or challenges!) you’re facing, an HR audit will help you enhance processes and procedures that are directly impacting your greatest asset—your people. Our team at Praxis Group understands the nuances of BC Labour Laws, the best practices in HR and how it all intersects with culture. We’ll help you understand steps to undertake.

Connect with our team to learn more about our HR audit process and other HR services.

Potential Changes to the BC Employment Legislation by Kyle Reid

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BC Employment Standards Act – Summary of Major Amendments

British Columbia’s Employment Standards Act (ESA) lays out the legal framework for minimum workplace standards to ensure employees are treated fairly and ethically across the province. Provincially regulated employers are required by law to run their organization in accordance with the rules laid out in the ESA. Although small amendments to the act are fairly common, significant alterations are quite rare.

In June of 2018 the “Employment Standards Act Reform Project Committee” finished their review of the ESA and made 78 tentative recommendations. Since these recommendations have been made, the Labour Minister of British Columbia has introduced in the Legislative Assembly of BC for the first reading of “Bill 8. The Employment Standards Amendment Act. 2019”. Of these recommendations, significant amendments were proposed to address: Stronger child employment protections, Expanded job-protected leaves, Improved wage recovery, Modernized Employment Standards Branch services.

Listed below are some of the major amendments proposed under Bill 8:

Stronger child employment protections

· This legislation will broadly raise the age a child may work to 16 (from 12 currently) and better protect the safety of 16 to 18-year-olds by putting restrictions on the type of hazardous work they can be asked to perform.

· Additionally, the legislation does provide exemptions that allow 14 year-olds and 15 year-olds to perform “light work” as prescribed by the Lieutenant Governor in Council (aka regulation via Cabinet) that is safe for their health and development (an example given is stocking shelves at a grocery store) with parental consent. To perform “any other work” will requires permission from the Director of Employment Standards.

· The legislation maintains existing regulations that allow children to work in recorded and live entertainment with parental consent.

Expanded job-protected leaves

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· Currently, workers who are trying to escape from domestic violence have no ability to take time from their jobs to find the solutions they need to make life safer for themselves and their kids.

· Changes in the new legislation will provide up to 10 non-consecutive days of unpaid job-protected leaves for those workers, so they can look for a new home, go to medical appointments, etc.

· Additionally, workers will have a second option that will see them receive up to 15 weeks of consecutive unpaid leave.

· Government will carry out an engagement process to determine next steps in making improvements to leave for workers escaping domestic violence.

· The legislation also creates a new unpaid job-protected leave for those caring for critically-ill family members that will align with federal employment insurance benefits — allowing workers to take up to 36 weeks to care for a critically ill child and up to 16 weeks to care for an adult.

Improved wage recovery

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· The legislation establishes a legal framework for regulating tips and tip pooling and protecting workers’ rights with respect to tips and gratuities.

· It prohibits employers from withholding tips or other gratuities from workers, deducting amounts from them, or requiring them to be turned over to the employer.

· It permits tip pooling but specifies that the employer may not share in the tip pool except when the employer performs the same work as workers who share in the pool.

· The legislation also extends the recovery period for which workers can recover owed wages from their employer from six months to 12 months — with the possibility of extending the period to 24 months under some circumstances, such as in cases involving wilful or severe contraventions of the act.

· It also makes collective agreement provisions subject to the minimum requirements of the Employment Standards Act.

Modernized Employment Standards Branch services

· Under the new legislation, the self-help kit is being eliminated as a required step before filing a complaint.

· The legislation will require the Director of the Employment Standards Branch to investigate all complaints accepted for resolution by the branch — improving on the current process of forgoing needed investigations in favour of speedy resolutions.

· It modernizes several other areas related to services provided by the Employment Standards Branch — including allowing the branch to waive or raise penalties, requiring employers to inform workers of their rights and requiring licensing for temporary help agencies.

· Government will also augment with non-legislative improvements to the branch, including increased education and outreach, adding multilingual capacity and providing enhanced service delivery to workers and employers with visual and hearing impairments.

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It is important to keep in mind that Bill 8 is still subject to revision prior to being passed into law by the legislative assembly of BC. However, if passed this will be the first major revision to BC’s ESA in almost 15 years. For more information on the proposed changes, click on the link below to view the proposed bill as it currently stands in the first reading in parliament.

Link: https://www.leg.bc.ca/parliamentary-business/legislation-debates-proceedings/41st-parliament/4th-session/bills/first-reading/gov08-1

What Exactly is a Human Resource Audit? By Christina Stewart

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Hearing the word ‘audit’ is often enough to cause most of us to break out in a cold sweat. Visions of Governmental officials in dark suits with calculators and grim expressions searching through the deep dark corners of your finances and your life come to mind. And I’m sure that can be true in some cases – but not in the case of an HR Audit. Or at least not in an audit with Praxis.

When we think about the word audit – we get excited! We think of problem solving and we think of answers and we think of executing on your visions – we think of solutions. The whole point to undertaking an audit is to get an objective assessment of your people practices so you can exact some positive change.

An HR Audit is a thorough review of your current human resources function. An audit will review your HR policies, procedures, documentation and systems as well as interview your people. Areas will often be identified that require some kind of enhancement (or possibly outright revamp) – when the HR function is enhanced you’re that much closer to executing on your overall company strategy and your vision.

Call it an audit, an assessment, an analysis, an examination, an evaluation or a review – it all means the same thing: understanding your HR function. A properly executed audit can tell you why your turnover is so high, why you’re having trouble recruiting, why you have so much overtime, sick time or disciplinary situations. An audit can provide your company with insight as to how your Human Resources behaviour is impacting your goals, objectives and bottom line.

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But knowing why is only half of it.

A comprehensive audit will also tell you what to do about it. And reputable audit companies will also lay out all the options for undertaking change. The really good ones will even help you execute on your new HR plan.

If you truly want to know where you stand with your people and want to know how to get from here to where you want to be, then an audit is exactly what you need. No governmental suits or sweating required.