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Conducting an HR assessment

Watch the video to learn how to properly review your HR system. 

What's an HR Assessment?

An HR system assessment is a review and evaluation of a company's human resources practices. It means checking things like recruitment, onboarding, compensation, benefits, performance management, training, and compliance with legal regulations. The goal is to identify strengths, weaknesses, gaps, and areas for improvement. 

For a child care business, an HR assessment is important for several reasons. First, the child care industry is heavily regulated with requirements for employee qualifications, safety training, and background checks. An HR assessment helps ensure compliance with all relevant laws and regulations, minimizing your legal risks. Second, HR systems can help attract and keep high-quality staff. Assessing and improving HR practices can boost employee satisfaction and reduce turnover. When HR runs smoothly, it saves time and money, letting you focus on caring for and teaching children. 

Starting point

To start an HR assessment for your child care business, begin with the following steps:  

Define the scope and objectives 

Outline the HR areas you want to assess and what you want to achieve through the assessment. Here are four areas to consider: 

  • Hiring procedures
  • Employee handbooks and core policies
  • Employee engagement
  • Termination and exits 

Gather documentation 

Gather all current HR policies, procedures, forms, and records. This may include: 

  • Employee handbooks, job descriptions, performance review templates, and onboarding and training materials.
  • Feedback from employees gathered through surveys, focus groups, or interviews (to help you understand what's working and what could improve) 

Review compliance requirements 

Ensure compliance with regulations and industry standards. This includes background check requirements, staff-to-child ratios, and mandatory training.  

What to look for in an HR assessment

Hiring 

When hiring new employees, it’s important to treat everyone fairly and use the same process for all positions. As you review your hiring policies and procedures, look for these things: 

  1. Job descriptions 

    Confirm your job descriptions clearly describe what each job does and include any skills or experience applicants need to do the job. 

  2. Recruitment methods 

    Check how well your hiring methods are working including job postings, social media outreach, employee referrals, or partnerships with local colleges. See which methods attract the most qualified candidates and focus on those. 

  3. Application process 

    Review your application and steps to make sure they're easy to use, up-to-date, and efficient. Consider using the same application for all positions to streamline the process. 

  4. Screening and interviewing techniques 

    Review how you check resumes and conduct interviews. Make sure your interview questions are relevant and help you learn if applicants have the right skills and fit the job. Consider training managers on how to do interviews.  

  5. Reference check process 

    Think about how you check references for people you may hire. Ask the right questions and check important facts, such as when they worked there, their job title, and what they were responsible for. See how consistent, thorough, and well-documented your reference checks are. 

Employee handbooks and core policies 

A good HR system includes an Employee Handbook to document company policies, procedures, and expectations. The handbook is helpful for both employees and employers when an issue or question arises. When you check your employee handbook and policies, consider the following: 

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Review the handbook

Make sure the handbook covers your mission and values, employment policies, compensation, benefits, leave policies, employee conduct, safety, and security.

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Legal compliance

Verify that your employee policies follow all 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. 

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Review handbook clarity

See if your employee handbook is clear and is easy for employees to understand. Use headings, subheadings, and bullet points to organize information. 

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Employee policies

Make sure your policies are current and address any changes in laws or regulations and update as needed. 

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Confirm handbook is accessible

Think about providing the handbook in more than one format (like print and digital) and confirm it's available in the languages your employees speak. 

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Review acknowledgment process

Have a way for employees to acknowledge they received and understand the handbook and updates. Require employees to confirm they understand the handbook updates with signatures or digital confirmations. 

Employee engagement 

In child care, the quality of care and education can depend on how happy and dedicated staff are. Happy employees are more likely to provide good care, build relationships with children and families, and help create a positive work environment. When reviewing your policies and procedures, look for the following: 

  1. HR contact 

    Make sure employees know who to contact for HR-related questions or concerns. Consider establishing regular office hours or communication channels for HR support. 

  2. Payroll system 

    Make sure employee records are up to date so pay stubs, paychecks, and tax forms are go to the right place.  Ask employees how happy they are with the payroll process. Consider upgrading or improving your payroll system if needed.  

  3. Reimbursement system 

    Look at your policies to make sure they're clear and check how quickly and accurately reimbursements are made for work-related costs. If needed, train employees on the process. 

  4. Time capture and reporting system 

    Confirm employee hours are being recorded correctly and all employees know how to use the system. Think about using an automated or mobile-friendly system if you don't already have one. 

  5. Employee performance measurement  

    Check how often employees get formal feedback and what topics are covered. Consider training managers on how to measure performance and include how to give both positive and constructive feedback. 

  6. Training and other employee development programs 

    Make sure training and opportunities are up-to-date and relevant. Use surveys or interviews to get feedback about your employee development programs. Consider offering mentoring or career advancement opportunities. 

  7. Discipline policies 

    Review your policies for clarity, fairness, and legal compliance. Make sure policies are enforced consistently and fairly and offer training for managers on disciplinary procedures. 

Employee termination and exits

You should have policies for when employees leave, both planned and unplanned, as well as for when someone is fired. As you look at your policies and procedures, look for the following: 

  1. Termination policies and process 

    Make sure your policies list valid reasons for termination the steps involved are clear and include documentation, communication, and respect for the employee. Offer training for managers on handling terminations professionally and with care. 

  2. Resignation policies 

    Confirm the policy states how much notice workers must give, if they need a letter, and how they should pass on their work. Use exit interviews to get feedback from employees who are leaving. 

  3. Severance and benefits 

    Look at your policies on severance pay, continuation of benefits, and other support for terminated employees. 

  4. Offboarding process 

    Create an offboarding checklist including the return of company property, access termination, and final pay. 

  5. Knowledge transfer procedures 

    Look at how knowledge is transferred from employees to their replacements or other staff. Consider a formal knowledge transfer process including documentation, training sessions, or job shadowing. Encourage employees to write down their processes throughout their employment. 

  6. Communication practices 

    Think about how you communicate staff changes to remaining staff, families and children. Make sure it is professional, respectful, and maintains the privacy of the employee. Consider giving managers guidance on how to communicate departures and manage team morale. 

  7. Turnover data 

    Perform exit surveys to find any patterns or trends in reasons for departures. Use this information to improve your retention strategies and work culture. 

Review and update your policies, procedures, and documents every year to make sure your HR system is up to date and working well. 

Tips for your HR assessment

  1. Set realistic goals and timelines 

    Be realistic about what you can do and set goals that you can achieve while considering  time, budget, and staff resources.  

  2. Involve your staff 

    Ask new employees about their experience with your hiring and onboarding process. Involve all employees in the assessment by asking for feedback and suggestions. 

  3. Seek professional advice when needed 

    If you have concerns about legal compliance, seek advice from an HR professional or lawyer who specializes in child care businesses. 

  4. Be impartial, honest, and don’t ignore data 

    If you don't collect and analyze HR data, you may miss opportunities to improve. Use data to help you make decisions and review turnover rates, employee satisfaction, and hiring metrics. 

  5. Follow through and communicate changes 

    Finding areas for improvement is the first step. Your assessment needs an action plan to be effective. Create a timeline and assign who should address issues. Communicate the results of the assessment and any changes to avoid confusion or resistance from staff. Be transparent and provide guidance on any updates. 

Where can I find help?

There are many resources available to assist you in performing your HR Assessment. Use free or low-cost resources, such as online HR templates, checklists, and guides.  

  1. Online HR software providers 

    Many HR software companies offer resources and guides on HR topics.

  2. U.S. Small Business Administration (SBA) 

    The SBA offers resources for small businesses, including guides on HR topics, such as hiring, managing employees, and complying with labor laws. Visit www.sba.gov for more information. 

When using online resources check if the source is credible, information is up-to-date and applies to your business and location. 

Disclaimer: 

The information contained here is for educational purposes only and is not intended to constitute legal, tax, or financial advice.