Transforming HR Compliance and Operations With an HR Audit
In today's complex business landscape, ensuring regulatory compliance and operational efficiency is critical for any organization striving for growth. This blog post presents a case study of a company that underwent a transformative human resources audit, highlighting the importance of such evaluations in identifying and mitigating risks associated with HR compliance and operations.
The Client
Our client, an industry leader with a history dating back to 1940, specializes in the application of chrome coating solutions. With a workforce of over 110 employees across five facilities located in CT, IL, NY, OH and WI the company has established itself as a pioneer in its field. The company's expertise and experience have earned it a reputation for providing high-quality products and services to its customers.
The Challenge
The organization faced significant HR challenges. In addition to providing new employees with an employee handbook that had not been updated in nearly 20 years, the newly hired Controller was concerned that there were other potential compliance issues that could expose the company to substantial financial risks. These concerns were raised and highlighted the need for a comprehensive audit to evaluate the state of HR operations and compliance in the organization, a daunting task given the different legal requirements in each state.
The Solution
Peale Piper was enlisted to conduct a comprehensive audit of the organization's HR operations, uncover legal or operational deficiencies, and provide a clear roadmap to compliance and risk mitigation. The audit covered compliance, recordkeeping, hiring, onboarding, compensation, benefits, people management, health, safety, and security, terminations, and HR systems, and tools. Peale Piper identified several areas of deficiency and provided the Client with a comprehensive report of findings and recommended actions for the organization to take to become compliant and reduce risk.
“We have a much better understanding of our compliance requirements after working with Peale Piper and Lisa. We’ve already taken some steps to reduce our risk and are continuing to work with Lisa to improve our human resources function.”
The Outcome
As a result of the audit, the Client achieved the following outcomes:
Recognized Client’s status as a Federal Subcontractor. The audit revealed that the Client was a federal subcontractor, something they were not aware of. Peale Piper provided guidance and resources for incorporating the requirements into their overall business operations, helping them to avoid significant costs that are often associated with lack of knowledge regarding specific compliance requirements.
Updated 20 year-old employee handbook. Peale Piper was able to create clarity for the Client and its employees regarding its policies and overall human resources operations by bringing the employee handbook into compliance. Peale Piper supported the Client with developing a communication plan to support implementation of the new handbook and assist managers with responding to employee questions.
Introduced a cost-saving Paid Time Off program. The Client's status as a federal subcontractor required them to offer paid sick time to employees. Peale Piper converted the Client’s already generous vacation policy to a Paid Time Off program to meet the legal requirements for providing sick time without increasing costs to the organization.
Implemented a compliant and effective HR function. Following the audit, Peale Piper continued partnering with the Client to implement the other recommendations outlined in the final report, including creating standardized processes and procedures across the locations.
About Peale Piper
Peale Piper specializes in HR consulting services, offering comprehensive audits and solutions designed to ensure compliance, operational efficiency, and employee engagement. With a focus on strategic HR management, Peale Piper empowers businesses to navigate the complexities of human resources, ensuring they remain compliant and competitive in today's market.
This is one of several engagements where we've helped organizations reduce risk and build stronger HR foundations.
Schedule a call with us to understand the current state of your HR function. Let's work together to shift your executive focus back to revenue-generating activities, freeing you from the burden of administrative tasks. With our expert guidance, you'll gain the peace of mind that comes from knowing your compliance issues are in capable hands.
