Effective Work Sample Exercises for Hiring an HR Compliance Manager

The HR Compliance Manager role is critical to an organization's risk management strategy and overall legal health. This position requires a unique blend of legal knowledge, analytical thinking, communication skills, and strategic planning abilities. Traditional interviews often fail to reveal whether candidates truly possess these capabilities or simply know how to talk about them.

Work sample exercises provide a window into how candidates actually approach compliance challenges, revealing their thought processes, attention to detail, and practical knowledge of employment laws and regulations. By observing candidates in action, you can assess not just what they know, but how they apply that knowledge to real-world situations.

Effective work samples for an HR Compliance Manager should test multiple dimensions of the role: analytical abilities, knowledge of regulations, communication skills, and strategic thinking. The exercises should mirror the day-to-day responsibilities they'll face, from identifying compliance gaps to developing training programs and investigating potential violations.

By incorporating these practical exercises into your hiring process, you'll gain deeper insights into each candidate's capabilities than behavioral interviews alone can provide. You'll see firsthand how they approach complex compliance challenges, communicate sensitive information, and develop strategic solutions—all essential skills for success in this critical role.

Activity #1: Policy Review and Gap Analysis

This exercise evaluates a candidate's ability to identify compliance issues in existing HR policies and recommend appropriate corrections. It tests their knowledge of current employment laws, attention to detail, and ability to communicate findings effectively—all critical skills for an HR Compliance Manager who will regularly audit company policies.

Directions for the Company:

• Select one of your actual HR policies (such as a leave policy, equal employment opportunity policy, or remote work policy) that you can share with candidates.
• Intentionally introduce 3-5 compliance issues into the policy. These could include outdated legal references, missing required elements, or language that creates potential legal exposure.
• Provide the candidate with the modified policy, relevant industry context, and company size/location information.
• Allow 45-60 minutes for the candidate to review the policy and prepare their analysis.
• Have a compliance-knowledgeable interviewer available to review the candidate's findings and provide feedback.

Directions for the Candidate:

• Review the provided HR policy document carefully for potential compliance issues or gaps.
• Identify areas where the policy may not align with current laws and regulations.
• Prepare a written analysis that includes:

1. Specific compliance issues identified
2. The potential legal or regulatory risks associated with each issue
3. Recommended revisions to address each issue
4. Any additional elements that should be added to strengthen the policy

• Be prepared to discuss your findings and recommendations verbally.

Feedback Mechanism:

• After the candidate presents their findings, the interviewer should provide feedback on one strength (e.g., "You caught the outdated FMLA reference that many candidates miss") and one area for improvement (e.g., "You didn't address the potential ADA implications in section 3").
• Give the candidate 10-15 minutes to revise their recommendations based on the feedback.
• Observe how receptive they are to feedback and how effectively they incorporate it into their revised analysis.

Activity #2: Compliance Training Development

This exercise assesses the candidate's ability to translate complex legal concepts into clear, engaging training materials—a key responsibility for HR Compliance Managers who must educate employees and management on compliance topics.

Directions for the Company:

• Select a recent or upcoming change in employment law relevant to your industry (e.g., new paid leave requirements, harassment prevention training mandates, or privacy regulations).
• Provide the candidate with basic information about the legal change and your company demographics (size, employee types, locations).
• Ask them to create a brief training outline and sample slides or materials for a 30-minute manager training session on this topic.
• Allow candidates to prepare this exercise in advance (24-48 hours before the interview) or allocate 60 minutes during the interview process.
• Have an HR leader or training specialist available to review the materials.

Directions for the Candidate:

• Review the information provided about the legal change and company context.
• Develop a training outline for a 30-minute session that would educate managers on:

1. The key elements of the new law/regulation
2. How it impacts the company's operations
3. What managers need to do differently
4. How to handle common scenarios that might arise

• Create 3-5 sample slides or a one-page handout that would be used in this training.
• Be prepared to walk through your training approach and explain your design choices.
• Consider how you would measure the effectiveness of this training.

Feedback Mechanism:

• After the candidate presents their training materials, provide feedback on one strength (e.g., "Your explanation of the practical implications was very clear") and one area for improvement (e.g., "The materials could include more specific examples relevant to our industry").
• Ask the candidate to revise one specific element of their training based on your feedback.
• Evaluate how well they incorporate the feedback and whether they ask clarifying questions to ensure they understand what's needed.

Activity #3: Risk Assessment and Mitigation Planning

This exercise evaluates a candidate's strategic thinking and ability to identify, prioritize, and address compliance risks—essential skills for developing effective compliance programs and advising leadership on potential legal exposure.

Directions for the Company:

• Create a scenario description of a fictional company similar to yours that is planning a significant change (e.g., expanding to a new state, implementing a new classification system for workers, or moving to a hybrid work model).
• Include relevant details about the company's current compliance practices, size, and industry.
• Provide any necessary background information on relevant regulations.
• Allow 45-60 minutes for the candidate to analyze the scenario and prepare their response.
• Have a senior HR or legal leader available to review the candidate's plan.

Directions for the Candidate:

• Review the scenario and identify the top 3-5 compliance risks associated with the planned change.
• For each risk, prepare a brief analysis that includes:

1. The specific legal or regulatory concern
2. The potential impact if not addressed (financial, operational, reputational)
3. A recommended mitigation strategy
4. Suggested metrics to monitor compliance

• Prioritize the risks based on severity and likelihood.
• Develop a high-level implementation timeline for your recommended mitigation strategies.
• Be prepared to present and defend your analysis to the interview team.

Feedback Mechanism:

• After the candidate presents their risk assessment, provide feedback on one strength (e.g., "Your analysis of the wage and hour implications was very thorough") and one area for improvement (e.g., "You might want to consider the recordkeeping requirements more deeply").
• Ask the candidate to elaborate on how they would address the area for improvement.
• Evaluate their ability to think on their feet and expand their analysis based on new considerations.

Activity #4: Compliance Investigation Simulation

This exercise tests the candidate's ability to handle sensitive compliance investigations, gather relevant information, and make appropriate recommendations—critical skills for addressing potential violations and maintaining a compliant workplace.

Directions for the Company:

• Develop a realistic scenario involving a potential compliance violation (e.g., an employee complaint about inconsistent application of overtime rules, allegations of discriminatory promotion practices, or concerns about a manager's handling of accommodation requests).
• Create a brief file with initial information, such as an email complaint, relevant policy excerpts, and basic employee information (with fictional names).
• Identify a company representative to role-play as a witness or complainant for the candidate to interview.
• Allow 15 minutes for the candidate to review the materials, 15-20 minutes for the interview, and 15-20 minutes to prepare findings and recommendations.
• Have an HR leader or legal counsel available to evaluate the candidate's approach.

Directions for the Candidate:

• Review the provided materials to understand the potential compliance issue.
• Prepare questions for the interview that will help you gather relevant information.
• Conduct a professional interview with the role-player, demonstrating appropriate sensitivity and thoroughness.
• After the interview, prepare a brief summary that includes:

1. Your understanding of the potential compliance issue
2. Additional information needed to complete the investigation
3. Preliminary assessment of whether a violation may have occurred
4. Recommended next steps, including any immediate actions needed

• Be prepared to discuss how you would communicate with various stakeholders about this issue.

Feedback Mechanism:

• After the candidate presents their findings, provide feedback on one strength (e.g., "Your interview questions were well-structured to elicit specific examples") and one area for improvement (e.g., "Consider how documentation requirements might affect your investigation approach").
• Ask the candidate how they would adjust their approach based on this feedback.
• Evaluate their receptiveness to feedback and ability to adapt their investigation strategy.

Frequently Asked Questions

How much time should we allocate for these work samples in our interview process?

Each exercise requires approximately 60-90 minutes to complete properly, including time for the candidate to prepare, present, and receive feedback. We recommend selecting 1-2 exercises that best align with your specific needs rather than attempting all four. These can be conducted during an extended interview session or as a separate assessment stage in your hiring process.

Should we use real company policies and scenarios or create fictional ones?

While using real company materials provides the most authentic assessment, you should modify them to remove sensitive information and add intentional compliance issues. For companies concerned about confidentiality, creating fictional scenarios based on your industry is an effective alternative. The key is ensuring the materials reflect the complexity and specific regulations relevant to your organization.

How do we evaluate candidates who have experience in different industries with different regulations?

Focus your evaluation on the candidate's process and approach rather than specific regulatory knowledge. Strong candidates will ask clarifying questions about unfamiliar regulations, demonstrate research skills, and apply transferable compliance principles. Consider providing basic regulatory information in the exercise instructions to level the playing field.

What if a candidate identifies compliance issues we weren't aware of?

This is actually a positive outcome! It demonstrates the candidate's expertise and the value they could bring to your organization. Have a compliance-knowledgeable person review all candidate submissions to validate whether additional identified issues are legitimate concerns. This unexpected benefit of the hiring process might help you improve your actual policies.

How should we weigh work sample performance against interview performance?

Work samples typically provide more reliable indicators of on-the-job performance than traditional interviews. We recommend giving work sample results significant weight in your hiring decision, particularly for aspects of the role that are difficult to assess through conversation alone (like attention to detail or analytical thinking). The ideal candidate will demonstrate strong performance in both areas.

Can these exercises be adapted for remote hiring processes?

Absolutely. All of these exercises can be conducted virtually, with candidates receiving materials via email or secure sharing platforms and presenting their work through video conferencing. For the investigation simulation, a team member can role-play the interview via video call. Some companies find that written exercises actually work better in remote settings, as they provide clear documentation of the candidate's work.

In today's complex regulatory environment, hiring the right HR Compliance Manager is more critical than ever. By incorporating these practical work samples into your hiring process, you'll gain deeper insights into candidates' actual capabilities and identify those who can truly safeguard your organization from compliance risks.

Ready to elevate your entire hiring process? Yardstick offers comprehensive tools to help you design and execute exceptional interviews. From creating tailored job descriptions with our AI Job Description Generator to developing targeted interview questions with our AI Interview Question Generator and building complete interview guides with our AI Interview Guide Generator, we provide everything you need to make confident hiring decisions. Learn more about the HR Compliance Manager role in our detailed job description.

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