Conducting an HR Assessment

Introduction

A Human Resources (HR) system assessment is a valuable tool that can help you identify gaps in your hiring process, employee policies, and employee satisfaction. This guide will walk you through the process of evaluating your current HR policies, processes, and procedures. Using a step-by-step approach, you'll gain insights into how to streamline your HR operations and support the growth of your child care business.

What is an HR assessment?

An HR system assessment is a comprehensive review and evaluation of a company's human resources practices. It involves examining various aspects of HR management, such as recruitment, onboarding, compensation, benefits, performance management, training, and compliance with legal regulations. The purpose of an assessment is to identify strengths, weaknesses, gaps, and areas for improvement in your current HR systems.

For a child care business, conducting an HR assessment is important for several reasons. Firstly, child care is a heavily regulated industry with specific requirements for employee qualifications, safety training, and background checks. An HR assessment can help ensure that the business is compliant with all relevant laws and regulations, minimizing your legal risks. Secondly, having effective HR systems in place can contribute to attracting and retaining high-quality staff, which is crucial for providing excellent care to children. By assessing and improving HR practices a child care business can boost employee satisfaction and reduce turnover. Additionally, streamlined HR processes can save time and resources, allowing the business to focus on its core mission of nurturing and educating children. As your child care business grows, having a solid HR foundation will also facilitate scaling up operations and managing a larger workforce effectively.

Where do I start?

Assessing your HR system involves evaluating its effectiveness in achieving the organization's goals and meeting the needs of employees. To start an HR assessment for your child care business, begin with these steps:

Define the scope and objectives: Clearly outline what areas of HR you want to assess (e.g., recruitment, onboarding, compliance) and what you aim to achieve through the assessment (e.g., identifying gaps, improving efficiency). There are four areas of focus to consider when assessing your HR system:

• Hiring Procedures;

• Employee Handbooks and Core Policies;

• Employee Engagement; and

• Termination and Exits.

Gather relevant documentation: Collect all your current HR-related policies, procedures, forms, and records. This may include:

• Employee handbooks, job descriptions, performance review templates, onboarding and training materials, and others.

• Feedback from employees gathered through surveys, focus groups, or individual interviews to gain insights into what's working well and what could be improved.

Review compliance requirements: Make sure you’re up to date on all the legal regulations and industry standards that apply to your child care business, such as background check requirements, staff-to-child ratios, and mandatory training.

What should I look for in an HR assessment?

Once you have set your goals and gathered all of your information you can begin to evaluate the policies, procedures, and documents that you have for each of the focus areas of your HR assessment.

Hiring

When seeking new employees for your child care business, it is vital that a fair and consistent method is applied to hiring for all positions with the organization. As you look at your policies and procedures around hiring, look for the following:

Review job descriptions: Make any additions or updates to your job descriptions so that they accurately reflect the roles and responsibilities of each position. Make sure each lists any necessary qualifications or experience that would be needed for someone in that role. For more information, view Creating a Three-Part Job Announcement.

Evaluate your recruitment channels: Assess the effectiveness of your current recruitment methods, such as posting on job boards, social media posts, employee referrals, or local colleges. Identify which channels bring in the most qualified candidates and focus your efforts on those. Review Finding Talent for more information.

Analyze your application process: Review your application forms and procedures to ensure they are user-friendly, up-to-date, and efficient. Think about using a standard application that can be utilized for all positions.

Assess your screening and interviewing techniques: Evaluate your methods for screening resumes and conducting interviews. Make sure that your interview questions are relevant and will be effective in assessing candidates' skills and fit for the role. Think about conducting interview training for managers.

Assess your reference check process: Review your procedures for conducting reference checks on potential hires. Make sure that you are asking relevant questions and verifying important information, such as employment dates, job titles, and responsibilities. Evaluate whether your reference check process is consistent, thorough, and well-documented.

Employee Handbooks and Core Policies

A solid HR system includes an Employee Handbook that documents all pertinent information about company policies, procedures, and expectations. This handbook is a valuable reference for them (and you) when an issue or question arises. When evaluating your employee handbook and employee policies as part of your HR assessment, consider taking the following actions:

Review the handbook's content: Make sure that your employee handbook covers all essential topics, such as company mission and values, employment policies, compensation, benefits, leave policies, employee conduct, safety and security, and compliance with relevant laws and regulations.

Check for legal compliance: Verify that your employee policies comply with federal, state, and local laws, including labor laws, anti-discrimination laws, and child care regulations. Consult with a legal professional or HR expert to ensure compliance.

Assess the handbook's clarity and readability: Evaluate whether your employee handbook is written in clear, concise language that is easy for employees to understand. Use headings, subheadings, and bullet points to organize information and improve readability.

Update employee policies: Review your employee policies to ensure they reflect current best practices and address any changes in laws or regulations. Update policies as needed to maintain relevance and effectiveness.

Evaluate the handbook's accessibility: Assess how easily employees can access and reference the handbook. Consider providing the handbook in multiple formats (e.g., print, digital) and making it available in languages spoken by your employees.

Review the acknowledgment process: Ensure that you have a system in place for employees to acknowledge receipt and understanding of the handbook and any updates. Make sure that employees confirm that they understand the updates with hand-signed acknowledgments or digital confirmations.

Employee Engagement

In a child care setting, employee engagement is particularly important because the quality of care and education provided to children is directly related to the well-being, satisfaction, and commitment of the staff. Happy employees are more likely to provide high-quality care, build positive relationships with children and families, and contribute to a positive organizational culture. As you look at your policies and procedures around employee engagement, look for the following:

Identify your HR contact: Assess the accessibility and responsiveness of your HR contact for employees. Make sure that employees know who to contact for HR-related questions or concerns. Consider implementing regular office hours or communication channels for HR support.

Evaluate your payroll system: Review your current payroll system in terms of accuracy and reliability. Make sure that employee records are up to date to make certain pay stubs, pay checks, and tax documents are going to the right address. Assess employee satisfaction with the payroll process through surveys or feedback. You might want to think about upgrading or streamlining your payroll system if needed.

Assess any reimbursement system you have: Review your current reimbursement policies and procedures for clarity and efficiency. Evaluate the timeliness and accuracy of reimbursements for work-related expenses. If needed, provide employees with training on the process.

Analyze your time capture and reporting system: Evaluate the accuracy and user-friendliness of your current time tracking system. Make sure that employee hours are being captured correctly. Confirm that all employees understand how to use the system correctly. Think about implementing an automated or mobile-friendly time tracking system if you aren’t already doing so.

Review your employee performance measurement process: Review your current performance evaluation process for effectiveness and consistency. Assess how often employees receive formal feedback and about what topics. Consider providing training for managers on effective performance measurement and giving both positive and constructive feedback.

Review training and other employee development programs: Check that training and development opportunities available to employees are up to date and relevant to their roles and your business. Use surveys or interviews to get feedback about the effectiveness of your employee development programs. Think about what mentoring or career advancement opportunities you can offer employees.

Assess your discipline policies: Review your current discipline policies for clarity, fairness, and legal compliance. Make sure that policies are consistently and fairly enforced across all employees. Provide training for managers on effective and appropriate disciplinary procedures.

Employee Termination and Exits

Your child care business should have policies for both planned and unplanned employee exits as well as what should happen in the event of an employee termination. As you look at your policies and procedures around termination and exits, look for the following:

Review termination policies and process: Make sure that company policies outline valid reasons for termination and the steps involved in the process are clear and includes documentation, communication, and respect for the employee. Provide training for managers on how to handle terminations professionally and compassionately.

Review resignation policies: Ensure that policies clearly outline notice periods, resignation letter requirements, and the process for transitioning job responsibilities. Use exit interviews to gather feedback from resigning employees.

Assess severance and benefits: Review your policies on severance pay, continuation of benefits, and other support for terminated employees.

Evaluate the offboarding process: Make sure that the process includes the return of company property, access termination, and final pay arrangements. Create an offboarding checklist to ensure consistency and thoroughness.

Assess knowledge transfer procedures: Evaluate your current procedures for transferring knowledge from exiting employees to their replacements or other staff members. Consider implementing a formal knowledge transfer process, such as documentation, training sessions, or job shadowing. Encourage employees to document their processes and important information throughout their employment.

Review communication practices: Assess how you communicate employee departures to remaining staff, families and children in your care. Make sure that communication is professional, respectful, and maintains the privacy of the exiting employee. Consider providing guidance for managers on how to communicate departures and manage team morale.

Analyze turnover data: Conduct exit surveys to identify any patterns or trends in reasons for departures. Use these insights to make improvements to your retention strategies and work culture. Review our tool Reducing Employee Turnover for more information on this topic.

Overall, an effective HR system should be designed to support your business in its strategic goals and to meet the needs of your employees. You should plan to review and update your policies, procedures, and documents annually to be sure your HR system is effective in supporting the businesses changing needs.

Pro Tips for your HR Assessment

Set realistic goals and timelines: Be realistic in your expectations and set achievable goals for improving your HR systems. Develop a timeline for implementing changes that considers your available time, budget, and staff resources.

Involve your staff: Seek input from recently hired employees about their experience with your hiring and onboarding process. Engage all employees in the assessment process by seeking their feedback and suggestions. They can provide valuable insights into what's working well and what needs improvement in your current HR systems.

Seek professional advice when needed: If you encounter complex issues or have concerns about legal compliance, seek advice from an HR professional or legal counsel specializing in child care businesses.

Be impartial, honest, and don’t ignore data: Failing to gather and analyze relevant HR data, such as turnover rates, employee satisfaction scores, or time-to-hire metrics, can lead to missed opportunities for improvement. Use data to inform your assessment and decision-making.

Follow through and communicate changes: Identifying areas for improvement is only the first step. Your assessment needs an action plan to be really effective. Create a timeline and assign responsibilities for addressing identified issues. Communicate out the outcomes of the assessment and any resulting changes to HR policies or procedures to avoid confusion or resistance among staff. Be transparent and provide clear guidance on any updates.

Where can I find help?

There are lots of resources out there to help you perform your HR Assessment. Utilize free or low-cost resources, such as online HR templates, checklists, and guides, to help you conduct your assessment. Many government agencies and industry associations provide valuable resources specifically for child care businesses.

Online HR software providers: Many online HR software providers, such as Gusto, TriNet, and BambooHR, offer free resources and guides on HR topics, including conducting HR assessments. These can be useful even if you don't use their software.

U.S. Small Business Administration (SBA): The SBA offers a wealth of resources for small businesses, including guides on HR topics, such as hiring, managing employees, and complying with labor laws. Visit www.sba.gov.

Society for Human Resource Management (SHRM): SHRM is a professional association for HR professionals that provides resources, templates, and guides on various HR topics. While some resources require a membership, others are available for free. Visit www.shrm.org.

National Association for the Education of Young Children (NAEYC): NAEYC is a professional membership organization that provides resources specifically for early childhood education professionals. They offer guidance on HR topics relevant to child care businesses. Visit www.naeyc.org.

State and local government agencies: Your state or local government may have resources specifically for child care businesses, including guidance on HR compliance and best practices. Check with your state's department of health, department of education, or child care licensing agency.

Remember, when using online resources, always verify the credibility of the source and ensure that the information is up-to-date and applicable to your specific business and location

Conclusion

Conducting an HR Systems Assessment is a valuable process for small child care business owners to ensure that their human resources practices are effective, compliant, and supportive of their overall business goals. By reviewing key areas such as hiring, employee policies, employee engagement, and termination policies, business owners can identify strengths and areas for improvement in their HR systems.

While the assessment process may seem daunting, you can tackle it by breaking it down into manageable steps and seeking guidance from professionals when needed. By investing time and effort into assessing and improving your HR systems, you can create a stronger foundation for your business, support the well-being and success of your employees, and ultimately provide higher-quality care for the children and families you serve.