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Human resources audit can prevent future issues

Posted on June 16th, 2011 Read time: 1 minutes

Many business owners and managers are not aware of all the applicable laws and requirements related their company's HR services. They are liable for wrongdoing, even if they break rules unknowingly.

Administering an HR audit to stay updated on best practices can be an effective way to reassure an employer that its department meets current legal standards and upholds internal policies of the organization, The Las Vegas Business Press reports.

"Your employees are your biggest and usually most expensive resource, and you can help achieve your business goals through the use of HR initiatives, policies, procedures, employee-benefit programs and compensation strategies," Mary Beth Hartleb, CEO of Nevada-based Prism Human Resource & Insurance Services, tells teh news source.

For example, employers are obligated to protect their employees' personal information, but many don't have a record-retention policy in place. Something as simple as a locked file cabinet with limited access can be integral in securing employee records. Plus, it's important to be aware of record retention requirements, as they vary for different documents and states.

Forbes adds that routine disposal of unneeded or duplicate records can enable more effective operations. Having less information and knowing its exact location can deter future HR headaches.

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