Employment Relations Health Check
Most organisations employ an internal person to maintain a consistent review of financial resources. Alternatively, many businesses subject themselves to external financial audits to ensure they are operating lawfully and wisely allocating financial resources. Many would argue that employees are equally - or at times even moreso - as important than financial resources, yet very rarely do employers invest money and time into auditing the business' employment resource division.
An Employment Relations (ER) Audit is an investigation of the organisations size, structure, and skill mix, and audit of all other employment based issues surrounding both the employees currently employed by the organisation, as well as the organisation's future 'people' needs. ER Audits also provide an analysis of the extent to which the organisation meets relevant employment legislation. An ER Audit enables an organisation to identify any gaps between where they need to be to achieve potential business goals and where the employees and processes are currently placed.
Upon completion of an Audit, obviously it is not possible to address all issues immediately (particularly where the Audit has identified a number of gaps). It is therefore important that findings are placed in a priority plan, allowing for 'gaps' presented with the greatest risk to be addressed in the first instance. A priority order will more effectively enable the business system to introduce improvements, workplace processes and strategies. Thus closing the gap and assisting in the business' achievement of its strategic objectives.
The greatest challenge for business persons in undertaking an internal ER audit supports the adage that "we don't know what we don't know". Employers often genuinely believe they are implementing relevant ER processes to encourage business performance and meet lawful requirements, only to find (most often after an ER disaster), that the dilemma has been caused by a gap in their ER strategy or an area of non-compliance.
Obtaining assistance from a person with expertise in Employee and Human Resource Management may be a wise investment – employers need to make certain, however, that they clearly communicate their requirements and scope to ensure the Audit is confined to the area of concern. A quality ER professional will ask a long series of questions to ascertain why a manager has chosen to undertake an audit 'now'; and what the expectations are in regards to the findings and proposed strategies. The cost and time commitment is varied (how long is a piece of string?), depending on the scope of the Audit, the size of the organisation and the costs of the ER professional appointed to undertake the task. An Audit could take as little as one hour or as long as one year, and cost either nothing or hundreds of thousands of dollars!
Undertaking an ER Audit is one way of minimizing business risks and increasing business's ability to respond to change and meet goals. A mini review can be found below. If nothing else, undertaking this mini review may identify and address one gap to improve the Employment Relations processes in a business; or ultimately, it may act as a call to action and initiate a full and formal review of this important segment of business.
Taking action
To undertake of Employment Relations Audit or for further information on any human resources or workplace relations issue, please contact your nearest Chamber of Commerce & Industry Queensland regional office.
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