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NeoSystems Corporation

Managed Human Capital Services

To Comply or Not To Comply – A Readied Approach

March 25, 2014 | BY: NeoSystems
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I read an article once in which the author stated that traffic tickets didn’t impede driver’s from speeding because everyone who speeds doesn’t get a ticket.  It was the threat of a speeding ticket that had (at least some) driver’s drive the speed limit.  In the Washington DC area, I’ve noticed that speeders rarely get ticketed and we have the drivers to prove it. In the world of HR regulations, the cost of non-compliance is much higher than the cost of a speeding ticket sometimes to the tune of millions of dollars so a readied approach is a good idea.

Anyone who spends any time in the HR world knows human capital professionals regularly deal with audits.  The additional demands of compliance on government contractors extend past accounting to the HR realm as well. The OFCCP (the Office of Federal Contract Compliance Programs) which is housed inside the Department of Labor (DOL) takes its mission very seriously. Their mission is:  to enforce, for the benefit of job seekers and wage earners, the contractual promise of affirmative action and equal employment opportunity required of those who do business with the Federal government.

Every company needs to be ready for a potential audit because by the time the audit is announced, it is too late to start getting ready. Taking the time to get ready in advance gives you the opportunity to research whether you have any gaps in compliance before an auditor is knocking on your door. The best way to do that is to conduct a self-audit for both compliance and efficiency (might as well while you’re at it).  Below are some suggested areas to focus on in a self-audit


  • Check all state/federal posters to make sure they haven’t expired
  • Review OSHA logs.  Even white collar employers need to have one.
  • Review all employee files to make sure terminated employees are separated from active
  • Policy review to ensure consistency and that policies are aligned to company goals/culture
  • Verify that the opportunity to self-identify, including individuals with disabilities (IWD) exists at both the pre AND post offer stage (required as of 3/24/14)
  • Review the documented Affirmative Action plan.  Is it reflected in all policies & procedures?


  • Calculate Turnover/cost of hire and assess strategies to reduce costs
  • Benchmark salaries/benefits against external sources.  Do they still fit your compensation philosophy?
  • Review FMLA/STD/LTD claims.  Depending on the benefit year, these will be a factor in re-negotiating prices for the coming year.
  • Assess the effectiveness of current resources (cost/benefit), and consider additional alternatives
  • Revisit your employee referral plan, noting number of hires, and potential areas of improvement
  • Save position description templates in your ATS for all potential needs in the coming year
  • Review website Careers Page.  Are the jobs also being picked-up by
  • Identify potential “surge” needs in the coming year, for which you can begin “pipelining” candidates now
There is almost literally no end to the number of things you could include in a self-audit.  These are provided to help spark some ideas. Contact our Human Capital team for more information on your self-audit.

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