What is an HR Audit?

An HR Audit is a means by which an organization can identify exposure, risk and liability
regarding Human Resources policies, procedures, practices and Labor Law. An HR Audit
produces a report that identifies where it currently stands against a list of complex legal
requirements and a series of prioritized recommendations to improve its human resources
function. It involves systematically reviewing all aspects of human resources, usually in a
checklist fashion, ensuring that government regulations and company policies are being adhered
to. The key to an audit is to remember it is a learning or discovery tool, not a test. There will
always be room for improvement in every organization; in leading organizations an HR Audit is
part of the annual audit process to measure and report against strategic business objectives,
operational effectiveness & efficiency and compliance & reporting.

HR professionals are now responsible for some very specific procedures; to receive,
retain, remedy and treat complaints they receive about HR business policy, process and
procedures; and they must have some appropriate mechanism in place to gather confidential
comments and concerns anonymously.

Why Do An HR Audit?

  • To insure the effective and efficient utilization of an organization’s Human Resources
    and Human Capital.
  • To review compliance with a myriad of administrative regulations, e.g., local,
    state/provincial, federal, Sarbanes-Oxley.
  • To instill a sense of confidence in management and the human resources function that
    it is well managed and prepared to meet potential challenges.
  • To maintain or enhance the organization’s and the department’s reputation in the
    business and professional community.
  • To perform a regular “due diligence” review for shareholders or potential

What HR Processes Can ELLA® Audit?

ELLA® is used to conduct confidential on-site and off-site audits. Our off-site approach is very
effective in reducing typical consultant related costs associated while assisting employers identify and
assess problems and co-develop sustainable, cost-effective solutions. Using ELLA® we will review
and assess individual or all HR Management and Employment practice areas, including:

  • Recruitment, Selection and Hiring
  • Application Forms
  • Reference Checking and Responding
  • Immigration Related Issues
  • ADA
  • Employee Handbooks and Procedural Manuals
  • Positive Employee Relations
  • Diversity, Inclusion, & Workplace Discrimination
  • Affirmative Action-Pay Equity
  • Sexual Harassment
  • Drug-Free Workplace
  • AIDS and Other Infectious Disease Issues
  • Job Performance Management
  • Retention Issues
  • Conflict Resolution
  • Discipline, Terminations and Downsizing
  • Leaves of Absence
  • Wage and Hour Issues
  • Unemployment Insurance
  • Workplace Safety
  • Ethics and Governance
  • Strategic HR

PEER REVIEW: ELLA® has been peer reviewed by the Society for Human Resource Management (SHRM),
the American Institute for Certified Public Accountants (AICPA), governmental agencies, such as the U.S.
Small Business Administration, and employment and labor law experts across the country.

SPONSORS: ELLA® has been sponsored by such employer organizations as the Software Publishers
Association, the U.S. Chamber of Commerce, the National Association of Manufacturers (NAM), the National
Glass Association (NAM), CUE, Printing Industries of America, and The Maryland Chamber of Commerce.

INTERNAL AUDITING TOOL: ELLA® is being used by hospitals, other healthcare providers, and
manufacturers as a part of their due diligence activities and internal controls.

RISK MANAGEMENT TOOL: ELLA® is being used by insurance companies as a risk management, loss
prevention, and loss control tool for their Employment Practices Liability Insurance (EPLI) and D&O insurance
products. ELLA® users frequently receive a premium credit from some insurers.

AWARDS: The software version of ELLA® was selected by HR Executive Magazine as the one of the top ten
HR products of 1996 – now in it’s 9th Edition. ELLA® has won national acclaim as the premier HR auditing tool.

~ Testimonials ~
1) “I’ve used ELLA® for many years. In my role as HR Director, it has always been the comprehensive
source for best practice and compliance. I particularly like to use ELLA® upon starting a new job
since it gives me a snapshot of the HR function and I know the challenges I’ll really be facing. As a
consultant, it remains a valuable tool for initial and ongoing assessment of our clients’ needs. In my
role as a college instructor, I find ELLA® to be useful and instructive to HR students. It gives them the
reality check that many textbooks do not. I can heartily endorse ELLA®.” A Management
Consultant and Professor of HR Management.
2) “Wow! I had an opportunity to review the 8th Edition of ELLA®. It is spectacular. I particularly found
valuable the fact that ELLA®s auditing value has been enhanced by including questions about
employment issues outcomes and the organization’s culture and values.”The President of a Major
Insurance and Risk Management Agency.
3) “Employment audits are becoming very popular and [ELLA®] looks like the best primer by far.”A
Nationally Recognized Employment Attorney.
4) “ELLA® has been a godsend. [Organizations conducting due diligence] should know how valuable
this tool is during mergers and acquisitions. “An HR Executive of a Major Food Service Company.
5) “ELLA® is a cost effective way for [business owners] to know what questions to ask and what to do
about the answers. “A Manufacturing Specialist at the Delaware Manufacturing Extension
6) “Employers, large and small, need a way to evaluate their employment practices to ensure they do not
create a ‘glass ceiling’ in their operations. [ELLA®] is designed to help employers identify and
prioritize the tasks necessary to achieve positive employment practices.”A Regional Advocate of the
Small Business Administration.
7) “ELLA® provides the best all-around guide to human resources management. Not only does ELLA®
offer information on the best practices for your company, but it also offers an explanation. Every
employer should go through this HR ‘checkup’ every few years.”The Former Executive Director of
the Maryland Commission on Human Resources.
8) “I was able to go through a couple of the [ELLA®] Profiles and am I impressed. This is and I expected
as much one of the most thorough and complete check list with a great analysis.” A Professor of HR
Management at a Leading University.
9) “I have to be honest and say that until a few days ago I hadn’t really known what the fuss was all
about. But now that I know what an incredibly useful tool [ELLA®] is, I can’t wait to get it in the hands
of our members….’’ The Executive at a Major Trade Association.