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Compensation audits

Audit teams carefully review the HR department’s compensation practices. Primarily, they study the level of wages, incentives, benefits, and services provided. If jobs have been priced properly through job evaluations and salary surveys, pay levels are fair. Benefits and services also are studied to learn if they are cost-effective, competitive with those of other employers, and in compliance with government regulations.

Affirmative action audits

The audit team also reviews the firm’s compliance with equal opportunity laws, paying particularly close attention to concentration
and underutilization of protected classes of workers. Although most large employers ha-ve a compliance officer to monitor the affirmative action program, the audit team serves as a further check. It usually focuses on hiring, developmental, placement, and compensation practices as they are applied to protected groups. Of particular concern is the progress being made by the company compared with the goals in its affirmative action plan. If discrimination exists, the team informs management of the need for corrective action

Posted on September 7, 2014 in The Human Resource Management Model

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