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Requisite of a Periodical assessment of Human Resources department, in every establishment

Posted by: The ADP Team on 29 August 2019 in Compliance, HR, Human Capital Management

(Coffee Break Compliance Guide – Volume 53 by Subramaniam Anandan)

Definition:

HR Assessment is an analysis, an assertion & a synthesis of current situation, issues, and priorities.  Appropriate recommendation shall be submitted to Management for course correction or for further action.

Need for an HR Assessment

Compliance: Consequences of not having right and appropriate documents as per the EMPLOYMENT Legislations will lead to Fine, Penalty, or cancellation of License to operate.

Communication and workplace practices: Periodical reviews of employee handbooks, code of ethics and workplace practices ensure employers’ rules are consistent with labor and employment laws. Employers are ensured having an opportunity to determine whether employees are aware of policies that affect the employment relationship.

Review of current practices: Reviewing current capabilities, building the required organizational capabilities and align the new capabilities with business strategies.

Confidence building for Management Objectives: Aligning the People to the Transformation of an Organization and to create fundamental & everlasting changes.

Objective of an HR Assessment: Though there is no legal requirement to conduct an HR audit, the employers realized the need in reviewing the compliance under employment legislations and usefulness towards Management Objectives.  The main objective of HR Assessment is to evaluate,

  • What happened?
  • Why it happened?
  • Why it did not happen?
  • How to make it happen?

On the other side, the Assessment provide guidelines for future assessments.

The areas where the Assessment in HR can happen is:

  1. Hiring
    • Non engagement of Child
    • Appropriate measures taken while engaging Adolescent
    • Considering provisions of the legislations while engagement of Trainee, Act Apprentices
    • Considering provisions of the legislations while engaging Consultants, Interns, Project Trainees
    • Precautions, Safety and other benefit measure while engaging woman employee and provision of Crèche
    • Follow provision while engaging persons with Benchmark Disabilities
    • Complying with provisions while engaging International Workers, Overseas Citizen of India (OCI)
  2. Selection
    • Issuance of appointment order
    • Non-discrimination in Recruitment, Wages, and employment conditions
    • Skill set defining and payment of Minimum wages
    • Exclusion of employees in select employment legislations (PF, Bonus, ESI etc)
    • Safety, Health and welfare for specific Persons
  3. Orientation / On-boarding
    • Appropriate training as specified in employment legislations
    • Awareness and education on Policies of employer
  4.  Documenting
    • Collection and recording of applicable documents – personal, academic, service related and disability related, if any
    • Nomination under various employment legislations
  5. Mandatory Disclosure of Employment conditions during on-boarding
  6. Compensation and its structure
    • Fixation of right Earnings and appropriate Deductions
    • Non-discrimination of wages for same job or similar works
    • Consideration of Maternity benefit (in case of woman employee), Overtime and Leave
  7. Employee Relations
    • Updation of periodical Nomination and personal details
    • Policy and process of complaint /grievance mechanism
    • Process for claiming social security benefits
  8. Mandatory Periodical Employee Communication dissemination
  9. Review of policies in conformation with change in labour legislations
  10. Separation of an employee
    • Settlement of
      • Wages
      • Earned Leave
      • Gratuity
      • Other allowances, etc
    • Support to the Dependents / Nominees in case of unfortunate death of an employee

Measuring and evaluation of performance of employees is also critical in every establishment.  This supports the Management in monetary management, change management and people management.  Identifying critical HR issues, ensure timely legal compliances and uniformity in HR policy, guarantees the Management Objectives in enhancing the Business.

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TAGS: Coffee Break Guide to Compliance compliance Employee Engagement HR assessment

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