7-Page HR Due Diligence Checklist

  • Job openings in each category of employees. Shortage of employees in any category that adversely affects the operations of the business? Overtime required because of shortages of employees? Employee turnover in any category a serious problem?
     
  • Significant layoffs or closings in progress or being contemplated? Occurred in the past year?
     
  • Business has an HR department? If yes, who is on staff and what are their responsibilities. Are they involved in significant business decisions?
     
  • Copies of all personnel manuals, employee manuals, or documents describing benefits, rules, and other terms of employment.
     
  • These documents out of date or amended? Can any be interpreted as employment contracts?
     
  • The procedures, techniques, and personnel involved to recruit and select employees at all levels.
     
  • Executive search firms utilized? If yes, the firms and fees paid? Any searches in progress?
     
  • Psychologists utilized to test job applicants? If yes, the psychologists, fees paid, and the type of applicants tested.
     
  • Employment contracts. Purpose of the contracts? The employer or the employees requested the contracts?
     
  • Employees who have been required to sign noncompetition agreements and/or confidential information agreements. Any who refused to sign ...