Human resources

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 a heavily regulated. There are specific requirements for employee qualifications, safety training, and background checks. An HR assessment can help ensure compliance with all relevant laws and regulations, minimizing your legal risks. Second, good 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. A strong HR system can also help you grow your business and manage more employees. 

Assessing your HR system means seeing how well it helps you reach your business goals and take care of your employees' needs. To start an HR assessment for your child care business, begin with these steps:  

Define the scope and objectives 

Outline what areas of HR you want to assess and what you aim to achieve through the assessment. There are four areas of focus to consider: 

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

Gather documentation 

Collect all your current HR 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 interviews. These will help you understand what's working well 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.  

Once you know your goals and have all your information, you can start checking your policies, procedures, and documents.  

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 

   Make sure your job descriptions clearly describe what each job does. Include any skills or experience someone needs to do the job. 

2. Recruitment methods 

   Check how well your hiring methods are working. This could include 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 

   Look at your application forms and steps to make sure they're easy to use, up-to-date, and efficient. Think about using the same application for all positions to streamline the process. 

4. Screening and interviewing techniques 

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

5. Reference check process 

   Look at how you check references for people you might 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. It should 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: 

1. Review the handbook 

   Make sure your handbook covers all the important things. It should include the company's mission and values, employment policies, compensation, benefits, leave policies, employee conduct, safety and security, and compliance with laws and regulations. 

2. Legal compliance 

   Verify that your employee policies follow federal, state, and local laws. This includes labor laws, anti-discrimination laws, and child care regulations. Consult with a legal professional or HR expert to ensure compliance. 

3. Assess how clear the handbook is 

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

4. Employee policies 

   Make sure your policies are current and address any changes in laws or regulations. Update policies as needed to maintain relevance. 

5. Check if the handbook is easy to access 

   See how employees can find and use the handbook. Think about providing the handbook in more than one format (like print and digital). It should be in the languages your employees speak. 

6. Review the acknowledgment process 

   Make sure you have a way for employees to acknowledge they have received and understand the handbook and any updates. Require employees to confirm they understand the updates with signatures or digital confirmations. 

Employee engagement 

In child care, the quality of care and education depends on how well, happy, and dedicated the 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 

   Check how easy it is for employees to reach the HR contact. Make sure employees are aware of who to contact for HR-related questions or concerns. Consider establishing regular office hours or communication channels for HR support. 

2. Payroll system 

   Check your payroll system to make sure it's correct and reliable. 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. Check how quickly and accurate the reimbursements are made for work-related costs. If needed, train employees on the process. 

4. Time capture and reporting system 

   See how accurate and easy to use it is. Make sure employee hours are being recorded correctly and that 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  

   Look at your process to see how well it's working and how consistent it is. Check how often employees get formal feedback and what topics are covered. Consider training managers on how to measure performance. 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 your policies are enforced consistently and fairly. Provide 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 and that the steps involved are clear. It should include documentation, communication, and respect for the employee. Training for managers on handling terminations professionally and with care. 

2. Resignation policies 

   Make sure the rules say 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 

   Make sure that the process includes the return of company property, access termination, and final pay. Create an offboarding checklist. 

5. Knowledge transfer procedures 

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

6. Communication practices 

   Look at how you tell remaining staff, families and children about staff changes. 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 

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

A good HR system should help your business’ reach its goals and meet the needs of your employees. Plan to review and update your policies, procedures, and documents every year to make sure your HR system is still working well. 
 

1. Set realistic goals and timelines 

   Be realistic about what you can do and set goals that you can achieve. Make a plan for making changes that fits your time, budget, and staff resources.  

2. Involve your staff 

   Ask your new employees about their experience with your hiring and onboarding process. Involve all employees in the assessment by asking for feedback and suggestions. They can give you insights into what's working well and what needs to improve 

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 might miss opportunities to improve. Use data to help you make decisions. Look at things like turnover rates, employee satisfaction, or hiring metrics. 

5. Follow through and communicate changes 

   Finding areas for improvement is only 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 clear guidance on any updates. 

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 online HR softwares offer resources and guides on HR topics. These can be useful even if you don’t use their software. 

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. 

Remember, when using online resources, always check if the source is credible. Make sure the information is up-to-date and applies to your business and location. 

An HR Systems Assessment can help make sure your HR works well and support your business goals.  You can identify strengths and areas for improvement in you HR systems. 

Even though it might seem tricky, you can break the check-up into smaller steps and get help from experts. By improving your HR, you can build a stronger business and help your employees succeed. 

Disclaimer 

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