Children's Defense Fund HR Audit - Slide : simplebooklet.com

CDF achieved an overall score of 2.12 out of 4.00 which is in the “At Risk” category. This indicates that the CDF HR team are engaged in core HR functions with a minimal level of functionality and several areas of instability. To attain a higher level of functionality in HR and support CDF leaders and employees in operating more effectively, we recommend hiring a minimum of two additional staff members with focus on enhancing core practice, and addressing recruitment, retention, and leadership development. 01. Executive SummaryThe HR Source was hired to conduct an audit of the Human Resource activities, programs, and projects of the Children’s Defense Fund (CDF). A comprehensive audit questionnaire was used, and a series of meetings were conducted with the HR Team and the organization’s Chief Operating Ocer. Documents were reviewed, and all the information was analyzed to identify strengths, weaknesses, and areas for improvement. Documents reviewed include the HR Workplan, CDF Handbook and revisions, and the CDF Compensation Guide.This will include upgrading the management of HR data and information, building a positive engaged culture, and supporting leadership and executive development. The HR team needs to fully align with the executive team and the organization’s strategic goals to achieve a positive organizational transformation, increased stability and sustainability and overall improved performance. The goal is for HR to attain a level of Transformational Practice, functioning as a fully strategic business partner within CDF.CHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 202401. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONS2

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The 17 categories of the Questionnaire were grouped into the following three results areas:This structure allows for prioritization of the results and recommendations, as all aspects of Core Practice must be functional. Advanced Practice areas are important for stabilization, while Transformational Practice items are crucial for optimization, with the ultimate goal of reaching high functionality in all areas. Once Core Practice HR functions are achieved, increased investment in training for new supervisors and managers, as well as support for seasoned leaders and the CEO, can occur. Once Advanced Practice is fully functional, HR can truly align with the strategic aspects of the organization and focus on continuous improvement.Includes eight (8) evaluation categories that represent the highest priority, most impactful areas required for minimal functionality. These are considered the basic functions to run an HR operation for a staff the size of CDF.Core PracticeIncludes six (6) evaluation categories that represent the second highest priority areas, which should be addressed to advance operational stability and begin impacting performance. Once core operations are stable, the goal is to transition to the Advanced Practice area to attain a higher level of functionality in HR and support CDF leaders and employees in operating more intentionally.Advanced PracticeIncludes three (3) evaluation categories required to strategically align, elevate, and optimize organizational performance. By attaining the level of Transformational Practice, HR will function as a fully strategic business partner within the organization.Transformational Practice02. ProcessCHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 2024301. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONS

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03. Assessment ScoringCHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 2024Each of the 17 categories was scored from 0 to 4. The scoring system supports evaluation and prioritization of efforts going forward, with a minimal goal of 3.0 considered “Functional”, and the average of 2 as “At Risk”. A score of less than 2 is considered “Underperforming” (1), with the lowest score being 0.0, categorized as the “Danger Zone”. The High Functional score of 4 is the goal.0Danger Zone2At Risk1Underperforming3Functional4High-Functioning401. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONS

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Core PracticeCHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 2024Danger Zone0At Risk2Underperforming1Functional3High-Functioning42.38AT RISKSCORE COMMENTSRecruitment and Stang SEC 2 2• According to the Workplan, the recruitment process has been documented, but still needs to be reviewed beyond the handbook• Could not nd the retention report that was mentioned as recently completed• It was estimated that 65% of job descriptions are somewhere, yet to be conrmedPersonnel Files SEC 6 0• Need to clarify what aspects of PayCom CDF has access to and verify the les• Unable to locate other les to track performance, attendance, disciplinary actions, history, promotions etc.• Need to verify and establish recordkeeping / check hard copies in oce and PayComCompensation / Wages and Hours SEC 7 3• A compensation study was performed; philosophy and formal plan is in place• Based on report, need to verify that the compensation is competitive• Need to audit / validate non-exempt vs. exempt classicationsPayroll SEC 8 3• No issues noted; PayCom is in placeLegal SEC 11 2• The handbook requires evaluation to identify and document potential safety and compliance related issues• Uncertain if all PayCom aspects related to Legality are being utilized• Status of grievances / litigationEmployee Benets SEC 12 3• According to the Workplan, employee benets were evaluated and all employee issues were corrected• According to the Workplan, a procedure is in place for handling FMLATermination SEC 16 3• No checklist; not monitored; unable to review lesOther SEC 17 3• Required posters displayed601. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONS

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Advanced PracticeCHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 2024Danger Zone0At Risk2Underperforming1Functional3High-Functioning42.17AT RISKSCORE COMMENTSEmployee Onboarding SEC 4 2• Need to review and update nal handbook; Needs a functional Table of Contents noting page numbers • Employees are to “not follow” the procedures • According to the Workplan, processes completed On & Off-boarding and Orientation Talent Management SEC 3 3• Workplan says managers were trained on FMLA, Recruitment, On-Boarding, Orientation, Management Do’s & Don’ts and Comp Philosophy; Managers and staff trained on performance management process including newly created development plan • Employees desire improved learning and professional development opportunitiesEmployee Relations SEC 5 2• Need to review formal grievance procedure and ensure adherence • Review disciplinary policies / practices and ensure adherence • The Workplan outlines a plan for repositioning HR as a strategic partner which could signicantly impact employee relations Performance Management / Evaluations SEC 9 2• Need to ensure training and documentation of results • Use of results to impact progress Worker’s Compensation and OSHA SEC 14 2• Handbook is being updated currently / no issues identied • Uncertain of any risks; no one in oce; unsure of appropriate safety practices and signage Employee Handbook / Policies / Procedures SEC 13 2• Handbook is being updated currently701. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONS

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Transformational Practice0Danger Zone2At Risk1Underperforming3Functional4High-FunctioningOverall ScoreCHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 2024Danger Zone0At Risk2Underperforming1Functional3High-Functioning41.33UNDERPERFORMINGSCORE COMMENTSOrganizational Structure / HR Strategy SEC 1 1• The HR workplan discussed goal of repositioning HR to function as a strategic partner • Need to clarify roles and responsibilities, alignment of HR with organization’s mission and vision, goals, metrics, priorities, etc. • HR stang is inadequateWorkforce Review SEC 10 1• Opportunity to plan, review, and ensure that top talent is recruited, managed and retained HR Information System SEC 15 2• Need to re-evaluate aspects of PAYCOM; understand what functions are being deployed, managed, used effectively • Lack of data management and use of analytics to impact and drive performanceAT RISK2.12801. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONS

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05. Additional ConclusionsThe core HR practice scored close to “At Risk” primarily due to poor data and information management and the instability of the HR practice.The existence of a central depository for staff information cannot be conrmed. In all successful organizations, employee les that contain all employee information from candidacy to hire and beyond are maintained by the human resources department. It was indicated that there are physical les for approximately 65% of the staff, though this is only an estimate. Performance management, disciplinary, and other documentation are housed in emails between HR staff members and managers, but there is no central location. Whether employee les are paper or electronic, there must be a le for each employee in the organization, combined in one centralized location. Having information scattered creates gaps in documentation and puts the organization at risk. For example, if the organization needed to act on an employee issue, lack of proper documentation could leave CDF in a vulnerable position, both legally and nancially.CHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 2024901. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONSCore Practice2.38AT RISK

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It is also clear that the HR Team is currently understaffed. Progress was clearly documented under the leadership of the former HR Director (HRD). According to the 2024 workplan that was submitted by the former HRD, several accomplishments were achieved by the department in 2023.2023 CORE PRACTICE ACCOMPLISHMENTS ; Created new processes for FMLA, Recruitment, Onboarding, Offboarding and standardized Orientation. ; Successfully completed Year 1 of the NBA HBCU Fellowship Partnership hiring 73 fellowships. ; Trained managers on the following processes: FMLA, Recruitment, Onboarding and Orientation, Management Do’s and Don’ts, and the Compensation Philosophy ; Trained the Freedom Schools Team in Youth Mental Health First Aid. ; Completed an HRIS RFP. Selected existing vendor Paycom. ; Evaluated all benets and corrected employee benets issues. ; Launched the HR Helpdesk in conjunction with the IT/Comms Helpdesk model. CHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 20241001. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONSCore Practice

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This area is also “At Risk.” Progress was documented under the leadership of the former HR Director (HRD), according to the 2024 workplan. Several accomplishments were achieved by the department in 2023, but with the Recruiter position vacant and now the HRD role unlled, it became impossible to manage and institutionalize all the HR activities planned or initiated in 2023.It is common for extensive hiring, such as the 93 positions lled at CDF from January to September in 2023 (before the hiring freeze), to place signicant stress on both the HR team and the organization as a whole. While successful recruitment is an essential rst step, effective onboarding is equally critical and requires careful coordination and planning. The success of onboarding efforts depends heavily on well-structured systems and managers who are properly trained to lead and develop employees throughout their careers.An assessment of CDF’s retention rate is also important. Reports indicate that a “mass exodus” of employees is occurring in 2024. While the HR team mentioned that a turnover report was completed last year, it was not made available for review, preventing an evaluation of staff tenures or a deeper examination of the reasons for the high turnover. Retention statistics and exit interview data would be instrumental in answering key questions about turnover and uncovering deeper issues, as well as potentially highlighting positive aspects of the organization’s work culture.2023 ADVANCED PRACTICE ACCOMPLISHMENTS ; Trained Employees and Managers on the Performance Management Process to include the newly created Development Plan. ; Facilitated three departmental culture retreats (MN, LDO, and NY). ; Launched the HR Helpdesk in conjunction with the IT/Comms Helpdesk model. ; Formed the Employee Relations Committee - Standing Body with guidelines and email dedicated to employee concerns. CHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 20241101. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONSAdvanced Practice2.17AT RISK

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In 2023, the HRD introduced tools and practices that should have positively impacted organizational culture. However, based on the leadership observed during this assessment, the culture of CDF could be one of the greatest contributors to organizational underperforming. Some staff reported a major culture shift since the hiring of the COO, and there are concerns regarding the relationship between the HR Team and the COO. This concern is heightened by reports that inappropriate language has been used by leadership, which can negatively impact the organizational culture of respect and engagement.CHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 20241201. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONSTransformational Practice1.33UNDERPERFORMING

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06. RecommendationsTo enhance the HR function at CDF, it is necessary to start by ensuring that the Core Practice is functional, then move to the Advanced Practice areas, and nally focus on the Transformational Practice areas. Hiring the right HR professionals and ensuring functional executive leadership is essential to achieving this.TOP 12 RECOMMENDATIONS01. Staff the HR Team to stabilize core operations and support the organization by hiring qualied professionals for the roles of HR Director and Recruiter. Why: The HR department is currently understaffed, which inhibits its ability to function effectively. Filling key positions will ensure that critical HR processes, such as recruitment, onboarding, and employee relations, are managed eciently, leading to improved operational effectiveness.03. Engage an Executive Coach for members of the executive team. Why: The executive team sets the tone for organizational culture and overall performance. Coaching will help senior leaders develop the necessary communication, leadership, and management skills to foster a more positive work environment, improve staff morale, and ensure a unied approach to leadership.02. Align the HR team’s vision and strategy with the vision and organizational goals of CDF. Empower this team and prioritize their voices to optimize their impact.Why: When HR’s strategy aligns with the organization’s overall mission, it enhances the department’s ability to drive positive change and contribute to long-term success. Empowering HR professionals ensures they have the authority and inuence needed to implement effective programs and initiatives that support organizational growth. CHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 20241301. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONS

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04. Re-establish the HR workplan with accountability for actions in all Underperforming and At-Risk areas.Why: A clear workplan with accountability mechanisms ensures that weaknesses identied during the audit are addressed systematically. This approach will help CDF move from underperforming to stability by setting specic goals and holding the HR team and leadership accountable for measurable improvements.05. Re-evaluate HR-relevant progress every quarter, including personnel les, retention rates, selected policies, and compensation reports.Why: Regular evaluation is essential for monitoring progress, identifying ongoing issues, and ensuring that corrective actions are effectively implemented. Quarterly reviews provide an opportunity to assess what’s working and make timely adjustments where needed.08. Share the goals, policies and practices with staff so that there is transparency and a clear understanding of how CDF intends to move forward.Why: Transparency fosters trust and alignment between leadership and employees. By clearly communicating HR goals, policies, and practices, CDF can ensure that staff are informed, engaged, and understand the direction in which the organization is heading, thereby reducing confusion and increasing collaboration.09. Obtain support from PayCom on how to set up, use, and monitor the HRIS more effectively.Why: Fully utilizing the capabilities of the HRIS system (PayCom) will improve eciency in HR processes such as payroll, benets, and personnel management. Maximizing the system’s functionality will reduce manual work, enhance data accuracy, and provide valuable insights to drive better decision-making.06. Build les for each staff member by consolidating all documents from candidacy to present day. Incorporate a process for updating and maintaining the les.Why: Properly maintained personnel les are crucial for legal compliance, performance management, and accurate record-keeping. A centralized system will mitigate risks, streamline HR operations, and ensure that employee information is up-to-date and easily accessible.07. Review the HR Workplan and policies to ensure completeness and consistency. Include a periodic review, evaluation and feedback process for the policies and practices to ensure that they are understood and followed consistently. Why: Consistent, up-to-date HR policies are vital for ensuring fairness, compliance, and transparency across the organization. Periodic reviews and feedback processes help identify gaps or inconsistencies, ensuring that policies remain relevant and are adhered to by all staff.CHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 20241401. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONS

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10. Facilitate a leadership intervention focused on leadership engagement, dening the desired culture at CDF, and establishing buy-in and accountability for living the values from the top down.Why: Leadership directly inuences organizational culture. A focused intervention will help align leadership behaviors with the values CDF aims to cultivate, creating a stronger, more cohesive culture where leadership is accountable for fostering a respectful and supportive environment.12. Develop and implement a retention strategy based on the previous retention work and exit interviews. Consider implementing a “Stay Interview” process focused on improving retention.Why: Retention is a key factor in organizational stability and growth. A targeted retention strategy, informed by past retention data and employee feedback, will address the root causes of turnover. “Stay Interviews” will provide real-time insights into employee satisfaction and areas for improvement, helping to prevent future turnover.11. Implement a periodic culture and employee satisfaction assessment and commit to engagement around actions taken to ensure all voices are heard and cared for.Why: Regular assessments of organizational culture and employee satisfaction provide critical feedback on employee morale and engagement. Taking action based on this feedback demonstrates CDF’s commitment to creating a workplace where all employees feel valued, contributing to higher retention and overall organizational health.CHILDREN’S DEFENSE FUND – HUMAN RESOURCES AUDIT RESULTS | 20241501. EXECUTIVE SUMMARY 02. PROCESS 03. ASSESSMENT SCORING 04. DETAILED ASSESSMENT RESULTS 05. ADDITIONAL CONCLUSIONS 06. RECOMMENDATIONS

Children's Defense Fund HR Audit - Slide

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