Case Studies
 

Human Resources Audit for a Leading Provider of Electronic Design and Manufacturing Services

This Company is one of Asia’s leading providers of electronic design and manufacturing services, offering end-to-end solutions in consumer and industrial electronics with over 6,000 employees worldwide. Headquartered in Hong Kong, the Company operates more than a dozen design, manufacturing and sales facilities in Asia, Europe and North America. Factories in Shenzhen are an important part of its many facilities.

Issues

The Company’s workers in Shenzhen went on strike protesting against wages and conditions. The strike reached a stage that the local government and police were involved to start an investigation into the matter. The strike was in fact an indication of the inadequate human resources management. It required well thought-out and well-structured actions to put things right again, in readiness for further business expansion. Hence, Leadingenes was asked to conduct an audit on their human resources operation and recommend solutions to serve the following objectives:

  • assess the quality of HR practices, policies and delivery
  • report on the extent of statutory HR compliance and remedial actions required
  • identify areas for change and improvement with specific recommendations on how future human resources efforts should be directed
  • provide feedback on the contribution of the HR function to the Company's strategic business objectives

Approach

The HR audit covered an exhaustive compliance review and a thorough assessment on the HR practices in the plants. The audit scope covered staff compensation, employment, termination, corrective action, policies and procedures, benefits administration, records maintenance, and overtime for wage and hourly employees. The audit process was conducted in 6 different phases. Each phase was designed to build upon the preceding phase so that the audit result would reflect the overall health of the HR function and the actions required.

Results

The audit took 3 weeks to complete. Highly useful decision support information was consolidated and a number of initiatives had been proposed subsequently to strengthen the company values, culture, vision and mission, HR compliance and employee relations. As a follow-up to ensure the stability of the workforce after the strike and improve the human resources function, Leadingenes consultants also guided its Human Resources Department for a couple of months after the HR audit to implement several critical measures.