Onboarding New Employees

Most medium- to large-sized organizations  have a standard onboarding process for new employees where they are briefed on  topics such as the organization’s history, organizational structure, and  employee benefits. The duration of new employee orientation and the topics  covered may vary.

Internal audit can be involved in the onboarding process in two  ways. First, it can audit the effectiveness of the process, itself. Second,  internal audit can be a part of orientation by introducing new employees to the  department. Internal audit can share its purpose and explain the new employees’  responsibilities related to internal controls, cooperation during audits, and  reporting to a whistleblower or ethics hotline.

Auditing the Process

Internal audit may opt to review the  organization’s strategy for onboarding, in addition to becoming a part of the  onboarding process, itself. This is especially important during the COVID-19  pandemic, for example, as organizations around the world have been forced to  halt or change how they onboard employees during a time when most employees are  working from home. Initiating a performance audit of the onboarding process may  reveal areas where improvements can result in a more effective process. Like  any performance audit, knowing what criteria to use is key when planning the  audit. A review of human resources (HR) policies and procedures as well as HR  goals and metrics with onboarding is a logical place to start. Reviewing  feedback solicited from onboarding participants will provide critical insights.

Benchmarking with peer organizations may  highlight areas where the business can enhance the onboarding process. Internal  audit should consider the time allotted for onboarding as well as the amount of  information being covered. Based on these observations, internal audit may  conclude that the onboarding process should be condensed or expanded.  Determining whether the organization has a contingency plan to onboard  employees remotely, during a time when most employees are working remotely now,  will determine the organization’s agility to adjust to changing circumstances  beyond its control. Lessons learned analysis will also highlight areas of  improvement.
 
Internal audit’s review can expand beyond the  general onboarding process given to all employees to include the process at  each employee’s specific department. An audit can determine whether employees  were provided adequate training, resources, and guidance during their initial  period of employment and help ascertain whether staff turnover may be higher in  certain departments. A risk-based approach when planning will help determine  what areas to include as part of an onboarding process audit.Introducing  Internal Audit

Employee orientation continues to evolve based  on the changing topics organizations are legally required to address, and  different departments may be brought in to introduce themselves and talk about  their roles. Internal audit may be among those groups. The audit function can  provide new employees with an overview of its responsibilities and how  employees can help the organization achieve strategic goals by being  cooperative during audits.

Explaining how employees play a significant  role with helping internal audit achieve its mission is vital. The level of  detail in this discussion can be scaled according to the audience and time  allotted. New employees may not remember everything explained about internal  audit during onboarding, but they may walk away with enough basic knowledge to  recall when it becomes more relevant or when they are involved in an audit.  

Revamping the Process

In organizations where internal audit is not  part of onboarding, the chief audit executive (CAE) should discuss with the HR  department why adding internal audit is important to the organization’s mission.  The CAE should provide details such as a proposed agenda, the people delivering  the presentation, and materials to be incorporated into the new employees’  welcome packages. A mock presentation to HR can help sell it on the need to  include internal audit in the orientation, so the CAE should consider whether  to provide a slide presentation and a demonstration of the department’s  website.

If internal audit manages the organization’s  hotline, the presentation can become an essential part of educating new employees  on how to use the hotline to report suspected fraud, waste, abuse, or  mismanagement. It also is important to explain the options and protections they  may have for reporting suspected fraud.

Knowing the Audience

Internal auditors should remember that most new employees will  have no background in auditing, and many will not be familiar with internal  audit’s responsibilities or may not have heard of it. With that in mind, topics  should be kept as nontechnical as possible.

It’s equally important to keep the audience  engaged in the discussion. Auditors should not assume anyone will know the  correct definition of     internal  controls, audits, or  other terms used during the presentation. The point is to keep them actively  listening and interested, without overwhelming them. Auditors should allow  enough time for questions at the end of the presentation. 
Obviously, there will not be enough time for  covering all aspects of internal auditing, so the presenter should try to cover  what is most relevant and important for a new employee to know.

Doing the Research

An internet search may provide insight on  what similar organizations include in their new employee orientation, while  information about the process may be gleaned from networking with local IIA  chapter members. After due diligence is done, internal audit may decide to  collaborate with HR to introduce an online training module to highlight  internal audit’s role and employees’ responsibilities. Research will help guide  internal audit to a decision that is right for its organization. Over time, it  will become obvious what works and what does not.Getting  Feedback

Onboarding presenters should carefully read any feedback they  receive from participants and adjust their presentation as necessary. If no  formal feedback is solicited, an internal audit colleague should sit in during  the presentation and provide feedback. Presenting during orientation can be a  great learning opportunity for audit staff members, especially when presenting  opportunities are rotated among the staff.
 
The opportunity to enhance internal audit’s role within an  organization begins with the cooperation of its employees. Investing time up  front to ensure all new employees have a basic understanding of internal  audit’s role in the organization can add value and improve audit results down  the road.