I am sure there are some members of senior management who have never had the term employee audit. The term refers to a comprehensive review of the employees’ affairs with the aim of confirming whether the whole spectrum of activities in the employees department are being conducted in accordance with the policies , procedures and guidelines of the organisation and are in compliance with the laws of the country where the organisation is located. The audit will help the organisation in revealing employee risk exposures for purposes of developing risk mitigation strategy. Risks may not arise if the organization has a good employees’ department with the capacity to hire appropriately qualified staff, let staff go legally, handle staff grievances, meet legal employment requirements and use best practice employment guidelines among others.
Importance of staff
The employees are the most important asset of your organisation as they link your organisation to the outside world. It is also important to note that everything which goes right or wrong in an organisation has a human element in it. The employees are also entrusted with the management of business risks and exploitation of business opportunities.
A well managed staff department can achieve.
Your organisation can therefore succeed or fail in meeting its goals and objectives depending on how well the risks relating to staff department are managed. A well-run and managed staff department will enhance staff morale, reduce staff turnover and help an organization in remaining competitive. The aspects handled by the department are manner and a number of them are indicated in diagram below.
Types of staff risks
It is important to carry the audit as your organisation could be facing any of the following risks:
- Absence of risk management strategy
- Class-action litigation
- Compliance and regulatory issues,
- Potential loss of key employees
- Loss of critical knowledge,
- Talent-management gaps
- Individual employee behaviour
- Shortage of critical skills and talents
- Failure to attract employees
- Selection of the wrong person
- Unsatisfactory performance
- Lack training program
- Unhealthy team
- Fear to take any risk
- Not all people are of integrity
- Lack innovation
- No rain makers
- Lack of leadership direction
- Wrong team mix
- Lack of business knowledge
- No adequate staff management practices in place
- Lack of compliance with staff legal and compliance framework
- Inadequate employment policies and procedures
- Creating a positive work environment
- Not living the values of the organisation
The earlier you find out the risk exposures facing your organisation the better as you will be in position to prepare and implement a risk mitigation strategy.
John Muhaise Bikalemesa
Director: Big Drum Advisory Services Limited