HR Problems Identified with an Assessment

Compliance, HRIS and Best Practices are among Problem Areas

PBO Advisory’s Nicole Devine, Consulting Chief People Officer, recently published an article for the Forbes HR Council, of which she is a member. The article summarizes the common issues that HR departments face, which Nicole and her team have discovered during assessments they have conducted. If you are a small- to medium-sized business, you may also have these HR problems and not even realize it.

Nicole has written about assessments in previous Forbes articles, detailing the benefits of assessments for your business and how to structure and conduct an assessment. In this most recent article, the issues that most commonly come to light during an assessment are featured. In 100% percent of all the assessments conducted, the PBO advisory team found HR compliance, HRIS, and best practices problems. For people strategies to be effective, assessing alignment will be critical to attracting and retaining talent and building organizational value.

These include:

Compliance Issues – HR compliance is the area in which all companies we have assessed fall short. Noncompliance can result in legal ramifications and impact culture along with your employer brand. Among the many compliance issues we identified are outdated employee handbooks, outdated or nonexistent injury and illness prevention programs, misclassifications (exempt/non-exempt), and wage and hour issues (meal penalties not applied, overtime not calculated correctly, pay stub errors, etc.)

HRIS Systems – Most organizations only use approximately 40% of the system they are paying for, which impacts the ROI. In every assessment we conducted, we found multiple systems were being used to process HR functions. Multiple touchpoints were required, which impacted productivity and the employee experience, created errors, and required intensive manual processes. Additionally, the management reporting capability was limited which prevented visibility for the leadership teams to make informed business decisions regarding people.

Other issues included HRIS systems that didn’t meet the company’s needs, were incorrectly implemented, or lacked user training.

Best Practices – Also in all our assessments, we found standard operating procedures need to be created or updated. Documenting the current process allows employers to provide business continuity during turnover, promotions, mergers/acquisitions alignment, etc.

We also found inadequate offer letters, job descriptions, performance management processes, compensation benchmarking, and wage ranges not supported by relevant market data.

To see a comprehensive list of the problems we found in the majority of assessments our HR team has completed, read Nicole’s latest article.

If you are interested in learning more about assessments and how they can benefit not only your HR department but also your accounting and finances department(s), we’ve created this short video.

If we can help you with an assessment to find problems within your company and a game plan for fixing them, please contact Nicole.

Nicole Devine
Consulting Chief People Officer
858-622-1681 Ext. 287