Human Resource Compliance Assessments
HR Assessments

HR Audit/HR Compliance Assessment Overview

An organization unaware of their HR duties and responsibilities is one step away from costly lawsuits and penalties as courts do not view ignorance as a defense. HR compliance means you must know the laws, develop appropriate policies in relation to the laws, and ensure that employment laws and policies are understood and consistently followed. Effective HR practices and policies appropriate for your specific business and industry can accelerate company development, competitiveness and profitability.

The Arnold Group’s (TAG) HR Compliance Assessment is designed to aide employers in evaluating strengths and weaknesses of their HR function as well as assisting in identification and elimination of potential areas of concern. The assessment results are presented in a detailed, confidential, objective summary report along with a prioritized series of recommendations to serve as the basis in forming more effective, and often times, compliant HR strategies and solutions.
Additionally, the assessment serves as an excellent strategic planning tool and is particularly helpful to new CEOs, CFOs, and HR leaders in determining where to place emphasis during times of change. It is also very effective when used prior to hiring a new HR leader, as a determinant of the knowledge, skills and experience necessary to effectively implement and manage your HR function.

TAG recommends performing periodic human resource compliance assessments to analyze all aspects of your current HR practices to minimize potential liability. An effective HR assessment will identify areas of efficiency and more importantly, all areas for improvement to include recommendations to meet those goals.

Benefits of the Assessment

  • Assist leadership in developing organizational policies and practices
  • Ensure compliance in employment, benefits and safety laws
  • Keep thorough records, ensuring confidentiality and adhering to retention schedules
  • Attract, retain, develop and motivate qualified employees
  • Communicate with and train employees and managers to minimize organizational liability
  • Ensure a workplace free from unlawful harassment and discrimination
  • Develop and implement a fair and equitable compensation system
  • Develop and implement an objective, fair and legally defensible disciplinary system and termination process

Human Resource Policies

Every organization with at least ten employees needs a set of written policies dealing with all matters regarding employment and other aspects of its business. Good HR policies and a handbook for employees are essential to good management and vital to minimizing risk in employment-related matters.

Assessment Focus

  • Employee Handbook
  • Compliance with Federal and State Employment Laws
  • Communication of HR Policies to Employees
  • Required Notice Postings

Tracking and Reporting

Information and records management is more complex today than ever before regarding legal record keeping and retention requirements. The process of creating and maintaining employee personnel files can be a painstaking and time-consuming endeavor. Accurate and up-to-date personnel files are essential to minimizing employer liability.

Assessment Focus

  • Record Keeping System
  • Records Retention and Employee Access
  • Human Resources Information Systems (HRIS)

Job Descriptions

Job descriptions are a tremendous tool to help clarify your organization’s mission for your employees, analyze staffing needs and compensation budgets, recruit qualified candidates, accommodate employees with disabilities and guide supervisors as they appraise employee performance.

Assessment Focus

  • Data Collection for Job Descriptions
  • Job Description Review

Safety and OSHA

The Occupational Safety and Health Act of 1970 (OSHA) guarantees workers a safe workplace. OSHA backs up that guarantee with hundreds of safety rules, guidelines, and regulations. Your organization must comply with these rules and regulations or risk paying stiff fines.

Assessment Focus

  • OSHA Record Keeping Requirements
  • Required Employee Notices
  • Safety and Health Programs
  • Quarterly Inspections


Benefits administration has become more complex in recent years. The Department of Labor (DOL) estimates that approximately 90% of all employers are out of compliance. Non-compliance leaves you exposed to fines, excise taxes, and lawsuits.

Assessment Focus

  • Group Health Insurance
  • COBRA Continuation Coverage
  • Workers' Compensation Insurance
  • Family and Medical Leave
  • Vacation and Other Time-Off Policies
  • 401(k) or Other Retirement Plans
  • Additional Benefits


There are many state and federal discrimination laws that govern compensation and the terms, conditions and privileges of employment. You must apply your compensation policies to all employees without bias.

Assessment Focus

  • Salary Administration
  • Bonus and Incentive Plans
  • Garnishments and Withholdings
  • FLSA Exemptions

Hiring Policies and Procedures

While managers and supervisors are usually involved in employment planning, HR is generally responsible for overseeing the entire process, and for good reason. Even the beginning of the hiring process, recruiting, is fraught with legal pitfalls.

Assessment Focus

  • Employment Planning
  • Recruiting Policies
  • Employment Advertising
  • ADA and Job Application
  • Hiring Cost Analysis
  • Applicant Interviews
  • Reference Checks
  • Testing and Evaluation
  • Background Checks
  • Selection Criteria

Employee Performance/Management

Most supervisors don’t like conducting performance appraisals. However, if done properly, the evaluator can achieve important organizational goals while maintaining constructive relations with employees and reducing discrimination claims.

Assessment Focus

  • Performance Appraisal System
  • Performance Appraisal Interview
  • Training Programs

Discipline and Terminations

Well-defined and consistently followed work rules define acceptable employee behavior and outline appropriate disciplinary steps and termination procedures.

Assessment Focus

  • General Discipline and Work Rules
  • Progressive Discipline
  • Termination Procedures