Why Conduct an HR Vulnerability Review?
HR vulnerability reviews are designed to assess company policies and practices, identify areas of non-compliance or weakness, uncover issues, and determine how to strategically align HR practices with business objectives. According to Watson Wyatt’s landmark Human Capital Index research study, “companies that adopt and combine superior HR practices can increase shareholder value by up to 47 percent”. HR and its related practices should therefore be a key strategic factor in a company’s plan for success and growth. An HR vulnerability review should be conducted when a company’s total employee population meets the threshold of the application of specific laws or when there are significant organizational changes as with an acquisition or merger, particularly across state lines. Additional occasions to conduct a review are when new regulations are announced, when a company becomes a federal contractor or subcontractor, issues a new employee handbook or changes its delegation of authority.
