Introduction to the company: -The company is in to speciality retail business which sells storage solutions for home and office with presence in over 47 locations throughout the country. If we see now the stores are approximately 2500 square feet on an average and showcase more than 10000 innovative products and all this to help our customers save on space and time. The layout of the store is then divided into various lifestyle sections marked with brightly collared banners such as Closet, Kitchen, Office and Laundry. Whenever anyone peeps into the store there is always some one available to help weather it be a small storage problem or more complex organisational challenges.
Our Customers not only get much better services than any other company but also fresh ideas and a very interactive shopping experience. The average growth rate of the company is 20% year on year since the start of its operations. One of the keys to the company's success is its devotion to recruiting and keeping a highly qualified workforce Its success is reflected in the fact that it has made Fortune's list of "100 Best Places to Work in America" in each of the past ten years.
Total number of employees currently working for the company is close to 4000 and last years total revenue was $650 million. The Human Resources (HR) Audit Programme: -HR audit is a process of examining policies, procedures, documentation, systems, and practices with respect to an organisation’s HR functions. The purpose of the audit is to reveal the strengths and weaknesses in the non-profit’s human resources system, and any issues needing resolution. When the focus is on improving the overall HR process of the organisation it is at that time that the HR audit provides best results. The HR audit is more like a diagnostic tool, not like a prescriptive instrument.
The HR Audit function helps us to recognize what is that we are missing or may be what we need to improve, but in no sense it can tell us what we need to do to deal with these issues. The most suitable exercise of the HR audit is only when an organisation is prepared to take action on the findings, and to develop its HR function to a level where it’s full potential to carry the organisation’s mission and objectives can be realised Werther and Davis, 1996.Meaning and purpose of HRA: -The process of examining documentation, policies, procedures, systems, and practices with respect to an organisation’s HR functions is called the Human Resources (HR) audit.
The most important principle behind the HR audit is to expose both the strengths and weaknesses in the organisation’s HR system, and any other issues that might be needing decision. The HR audit is considered to be working at its best only when the focus is on analyzing and improving the HR function in the organisation Aswathappa, 2006.HR audit recommended for the company: - Compensation and Benefits: - One of the most complex HR systems is the employee benefit programmes which also includes compensation and benefits.
The system of recognition and reward is supposed to help and support the organisation's strategic mission it should also work towards motivating employees and reward performance. The company’s compensation systems should be both externally competitive and provide internal equity.
A very important area of risk for U. K. organisations is to very fairly complying with the Fair Labour Standards Act (FLSA) regarding overtime pay. The companies have to sort every position as non-exempt which is subject to overtime pay or exempt which is not subject to overtime pay. Also they must correctly calculate overtime pay for non-exempt employees. The payroll function should be reviewed to ensure that new hires, personnel actions, work hours, and differential pay are efficiently processed so that pay checks are accurate and processed timely.
The verification of controls should be done by the auditors so as to make sure that there is a strict maintenance of the confidentiality of personnel data, any more additions to basic compensation are aptly calculated and certified, the compliance with tax and deductions is made fully, the employees that are terminating their payrolls are processed appropriately, and costs of the payroll are in accordance with the objectives of budgeting.