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A HR Audit is a great way to assess and improve the current HR practices and ensure your business is compliant with the Fair Work Act (2009).
It will identify strengths and weaknesses, but more importantly at the end of each audit, you will be presented with a comprehensive report outlining the review findings and recommendations for next steps.
Depending on your needs, Liquid HR offers a Compliance Audit, Performance Audit or Modern Award Audit.
Compliance Audit
Ensure your business is meeting its legal employment obligations
A HR Compliance Audit is an effective way of assessing your current alignment with workplace obligations.
It will ensure that you are compliant with the key provisions of the Fair Work Act 2009, mitigating risks associated with non-compliance.
Some of the areas covered include a comprehensive review of your employment contracts, award coverage and leave entitlements, workers compensation insurance, policies/procedures, employee records and payslips to determine accuracy and compliance.
The HR Compliance Audit will usually take 2 days to complete.
Performance Audit
Implement best practice HR in your business
A Performance Audit incorporates the Compliance Audit as well as an analysis of your current HR practices, including recruitment and selection, onboarding, managing performance, retention, learning and development and remuneration.
It allows you to benchmark your current HR practices in comparison to best practice.
The HR Performance Audit will usually take 4 days to complete.
Modern Award Audit
Clarifying your organisation’s coverage under the Modern Award system
A Modern Award Audit will help you determine the coverage, classification and subsequent pay rates and entitlements for your employees that are specific to your organisation.
Utilising a list of positions in your business and the position descriptions, we will work through the relevant information to ensure that your business is compliant and managing the risk of any underpayment of wages claims.
The length of the Modern Award Audit will be dependent on the number and complexity of the roles in your organisation.
Overview of Modern Award Audit
HR Performance Audit overview
A HR Performance Audit is a great tool to undertake an assessment of your current HR practices. It will ensure you are compliant with the key provisions of the Fair Work Act 2009, mitigating risks associated with non-compliance. In addition to this, it will allow you to benchmark where your current HR practices are at in comparison to best practice.
The HR Performance Audit will involve a consultant coming on site at your workplace. They will then utilise all of the information collected to prepare an Audit report for your organisation on the findings. Below you will find a detailed overview of what is included as part of the HR Performance Audit
Integral to any HR audit is the employment contract. Liquid HR will review the employment contract templates currently used by your organisation and a sample of executed employment contracts on file to ensure compliance with applicable Modern Awards and associated Individual Flexibility Agreements, Annualised Salary/Guaranteed of Annual Earnings Agreements and the Fair Work Act (2009). A sample position description will also be reviewed to ensure compliance with the express and implied obligations of the employment relationship. Existing HR policies and procedures will be reviewed to further determine your organisations level of compliance and duty of care to mitigate risk. Amendments and recommendations for additional policies will be made for both compliance and best practice purposes.
As part of the on-site review, Liquid HR will randomly select and examined a sample of 10 hard copy employee files to determine the completeness and accuracy of a range of information and data. Accurate employee records are a requirement of the Fair Work Act (2009). This aspect of the review supports recommendations to address gaps in your organisations record keeping and improve the data integrity of workflow systems and processes. Employee records include the following:
- Signed employment agreement
- Signed taxation declaration form
- Signed position description
- Signed superannuation choice form
- Resume & references
- Educational qualifications
- Personal records, contact details, bank details
- Payroll details (pay rates, bonuses, incentives, salary sacrifices)
- Centrelink letter
- Acknowledgment of policies & procedures
- Probation / Confirmation of employment
- Change of employment status (casual, part-time, full-time, contractor)
- Completion of employer funded training
- Salary increases / Increments
- Higher duties / Loadings
- Leave verifications
- Medical certifications
- Change of hours
- Staff transfers & change in reporting line
- Terminations (Resignations / Redundancies)
Liquid HR will review a payslip from the latest pay run and check that the employee was paid appropriately.
Worker Compensation Insurance
It is a legal requirement that your organisation keeps accurate and up-to-date workers compensation insurance. Liquid HR will review the current policy against the current state of the organisation to ensure that your organisation is appropriately covered and it is applying the appropriate WIC code for your industry.
Review of current HR Practices
Through interviews with key stakeholders and a review of current processes and documentation, Liquid HR will undertake an analysis of the current HR practices, including:
- Recruitment and Selection – an analysis of how talent is currently recruited in the organisation, which will involve a review of:
- the recruitment process, including how a vacant role is identified and whom is responsible
- The medium in which vacancies are advertised, including the cost and effectiveness of this
- Whether the organisation has a current way to track and maintain contact with external talent
- Recruitment documentation, including phone screening guides,
interview questions and reference checks - The offer process, including how the remuneration for the role is
determined, whether this is benchmarked to the industry and how the role is offered to the candidate
- Onboarding – an analysis of how new team members are introduced to the organisation, which will involve a review of:
- Any communication to a new team member prior to their commencement in the role
- The onboarding process currently in operation – including a review of what happens when a new team member currently joins the organisation, comparing this to HR best practice.
- Managing Performance – an analysis of how performance is currently managed in the organisation, which will involve a review of:
- How any performance issues/concerns are currently addressed, including a review of current performance documentation utilised (discussion records, warning templates etc)
- 5 random samples of performance documentation currently on file and whether this documentation would meet the required standards of the Fair Work Act 2009, should the performance issue proceed to termination
- The performance appraisal process and guidelines, including performance appraisal documentation
- How goals/KPIs are currently set for team members to determine if these are linked to the broader organisational objectives
- How leaders are provided with feedback on their performance and opportunities for further growth
- Retention – an analysis of the organisations current turnover which will involve a review of:
- Turnover for the last 12 months
- Any exit interview data that has been collected, in order to identify any patterns or areas of concern that can be addressed
- Any retention initiatives that have been put in place to retain high potential employees
- Learning and Development – an analysis of the organisations current
Learning and Development which will involve a review of:- The current learning and development processes in place, including how learning and development opportunities are identified and offered to employees
- Any learning and development initiatives currently offered
- Any potential opportunities to improve the learning and development offer
- Remuneration – an analysis of the organisations current remuneration and benefits structure which will involve a review of:
- How remuneration is currently determined, including a review of the current remuneration framework and policies
- Any market benchmarking that has been completed by the organisation
- How remuneration is determined for any internal promotions or transfers
- The perceived value of any benefits that are currently offered to employees and recommendations for any additional benefits that could be considered to have a positive impact on engagement and retention
- Any bonus/incentives currently in place and whether this is clearly documented and communicated to employees
HR Compliance Audit overview
A HR Compliance Audit is a great tool to undertake an assessment of your current HR practices. It will ensure you are compliant with the key provisions of the Fair Work Act 2009, mitigating risks associated with non-compliance.
The HR Compliance Audit will involve a consultant coming on site for 1 day. At the end of the audit you will be presented with a comprehensive report outlining the review findings and recommendations for areas that can/should be improved. Below you will find a detailed overview of what is included as part of the HR Compliance Audit.
HR Compliance Audit overview
A HR Compliance Audit is a great tool to undertake an assessment of your current HR practices. It will ensure you are compliant with the key provisions of the Fair Work Act 2009, mitigating risks associated with non-compliance.
The HR Compliance Audit will involve a consultant coming on site for 1 day. At the end of the audit you will be presented with a comprehensive report outlining the review findings and recommendations for areas that can/should be improved. Below you will find a detailed overview of what is included as part of the HR Compliance Audit.
Integral to any HR audit is the employment contract. Liquid HR will review the employment contract templates currently used by your organisation and a sample of executed employment contracts on file to ensure compliance with applicable
Modern Awards and associated Individual Flexibility Agreements, Annualised Salary/Guaranteed of Annual Earnings Agreements and the Fair Work Act (2009). A sample position description will also be reviewed to ensure compliance with the express and implied obligations of the employment relationship.
Existing HR policies and procedures will be reviewed to further determine your organisations level of compliance and duty of care to mitigate risk. Amendments and recommendations for additional policies will be made for both compliance and best practice purposes.
As part of the on-site review, Liquid HR will randomly select and examined a sample of 10 hard copy employee files to determine the completeness and accuracy of a range of information and data. Accurate employee records are a requirement of the Fair Work Act (2009). This aspect of the review supports recommendations to address gaps in your organisations record keeping and improve the data integrity of workflow systems and processes. Employee records include the following:
- Signed employment agreement
- Signed taxation declaration form
- Signed position description
- Signed superannuation choice form
- Resume & references
- Educational qualifications
- Personal records, contact details, bank details
- Payroll details (pay rates, bonuses, incentives, salary sacrifices)
- Centrelink letters
- Acknowledgment of policies & procedures
- Probation / Confirmation of employment
- Change of employment status (casual, part-time, full-time, contractor)
- Completion of employer funded training
- Salary increases / Increments
- Higher duties / Loadings
- Leave verifications
- Medical certifications
- Change of hours
- Staff transfers & change in reporting line
- Terminations (Resignations / Redundancies)
Liquid HR will review a payslip from the latest pay run and check that the employee was paid appropriately.
It is a legal requirement that your organisation keeps accurate and up-to-date workers compensation insurance. Liquid HR will review the current policy against the current state of the organisation to ensure that your organisation is appropriately covered and it is applying the appropriate WIC code for your industry.
We have a 3 day HR Performance Audit, which in addition all of the above, will involve an analysis of the current HR practices, including:
- Recruitment and Selection
- Onboarding
- Managing Performance
- Retention
- Learning and Development
- Remuneration
Document Review
Integral to any HR audit is the employment contract. Liquid HR will review the employment contract templates currently used by your organisation and a sample of executed employment contracts on file to ensure compliance with applicable
Modern Awards and associated Individual Flexibility Agreements, Annualised Salary/Guaranteed of Annual Earnings Agreements and the Fair Work Act (2009). A sample position description will also be reviewed to ensure compliance with the express and implied obligations of the employment relationship.
Existing HR policies and procedures will be reviewed to further determine your organisations level of compliance and duty of care to mitigate risk. Amendments and recommendations for additional policies will be made for both compliance and best practice purposes.
Testimonial
What Our Customers Say
We engaged Liquid HR Payroll to manage our entire payroll backend function including high volume timesheet processing, onboarding and compliance for our large, multisite weekly payroll.
As well as streamlining our onboarding process we have reduced our payroll turnaround times, meaning savings in staff time and related cost.
Rory McKinnonManaging Director at Fusion People
We moved from having a Human Resources manager to Liquid HR a year ago and outsourcing our HR function has not only saved us money but also added capability and quality. The structure allows us to draw on the right level of resource when required, which is a great benefit.
Anthony WatsonCEO at Rapid
Undertaking a coaching program has been an insightful and humbling experience. Looking back, it’s clear that I wasn’t fulfilling my obligations as a leader to my team. I’ve learnt so much over the past six months and am now confident in my leadership ability
Brendan TaylorCEO at Chief Manufacturing
Our onsite consultant has worked in the business one day per week for over two years and proven to be an excellent asset. Our employees appreciate the professional advice and we have built a number of effective HR programs that the business has benefited from
Narelle DoranDirector at All Suburbs Strata Management
The team at Liquid HR helped us deal with a rather uncomfortable issue and very difficult situation with an employee. They were super thorough in explaining all the steps and options available to us – and best of all, we had a dedicated specialist assigned who helped us mitigate the circumstances and achieve the absolute best outcome possible. I highly recommend Liquid HR
Attila VermesDirector at Giant Invitations
Having spoken to multiple HR consultancies, we found Liquid HR to be the perfect fit for our business. Liquid HR took the time to listen and fully understand the complexities associated with our business and the technical roles we were developing. Excellent insight, thorough and good fun to work with
Mark FrancisHead of Sales at Star Micronics
We are growing fast and we wanted to ensure that we were compliant in all areas of our business, as well as being sure our processes would grow with us. Engaging Liquid HR to undertake a Human Resources audit was extremely useful. The audit identified areas to improve but more importantly systematically walked us through how to fill the gaps and manage the risk in our business
Angelo RuisiSales Manager at Logical Pos
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