Why HR Audits Matter for Small Businesses

Many small businesses operate without a formal HR department, which can leave gaps in compliance, documentation, and employee relations. An HR audit is a comprehensive review of your organization's policies, procedures, and practices — and it's one of the most valuable investments a growing business can make.

What Is an HR Audit?

An HR audit examines every aspect of your human resources function, from hiring and onboarding processes to benefits administration, employee handbooks, and termination procedures. The goal is to identify areas of risk, ensure legal compliance, and uncover opportunities for improvement.

Why It Matters

Federal and state employment laws are constantly evolving. Without regular audits, businesses risk falling out of compliance with regulations like the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and state-specific employment laws. Non-compliance can lead to costly fines, lawsuits, and damage to your reputation.

Key Areas to Review

• Employee classification: Are your employees correctly classified as exempt or non-exempt? Misclassification is one of the most common — and costly — HR mistakes.
• Handbook and policies: Is your employee handbook up to date with current laws and best practices?
• Benefits administration: Are you meeting all regulatory requirements for benefits offerings?
• Recordkeeping: Are you maintaining proper documentation for all employment actions?

How GOHRSolutions Can Help

At GOHRSolutions, we conduct thorough HR audits tailored to your organization's size, industry, and unique needs. Our project-based approach means you get expert-level support without the overhead of a full-time HR team. We'll identify gaps, prioritize action items, and provide a clear roadmap for improvement.

Ready to see where your organization stands? Book a discovery call to get started.