Case Study 3 – HR Audit and Compliance enables Profitable Growth

The Challenge

An Australian/NZ organisation with no dedicated HR professional requested an audit of their HR function to determine suitability to effectively compete in a specialist technical sales field.

Our initial evaluation to detect gaps between existing and desired HR function identified specific risks of:

• non-compliance: Fair Work Australia obligations, ISO Quality Management System accreditation, OH&S and WorkCover and ACC (NZ) obligations,
• excessive payroll costs and employee numbers,
• organisational structure ineffective for sales organisation, and
• low levels of employee engagement and high employee turnover

The Analysis

The audit determined an incomplete and outdated HR function for a sales organisation in this industry sector to compete effectively in Australia and NZ. Findings and recommendations were presented to the executive team and approval was granted to design an appropriate HR structure.

The Action Plan

The action plan consisted of:

• implementing a communications strategy, including advice of the change management process,
• addressing legislative compliance of HR components,
• remuneration review and expenses control of payroll,
• organisational restructure to maximise sales capability,
• updating employee records and HR systems, policies and procedures,
• performance development and employee engagement initiatives, and
• review periods throughout and after completion of process

The Positive Outcome

Our audit and HR action plan resulted in full compliance with Fair Work, ISO Quality Management Systems and OH&S obligations. Employee business unit numbers aligned with the organisation’s sales focus, with payroll savings of $250K. Employee engagement was optimised, resulting in a reduction of employee turnover of 29% over 12-month period.