What do you think of HR audits?

Necessary for evaluating HR policies and procedures, identifying its alignment with overall company strategies, & correct any problems you may find.

A Human Resources Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to ensure compliance with ever-changing rules and regulations. An Audit involves systematically reviewing all aspects of human resources, usually in a checklist fashion.

Sections of review include:

• Hiring and Orientation
• Benefits
• Compensation
• Performance evaluation process
• Termination process and exit interviews
• Job descriptions
• Form review
• Personnel file review

The purpose of an HR Audit is to recognize strengths and identify any needs for improvement inthe human resources function. A properly executed Audit will reveal problem areas and providerecommendations and suggestions for the remedy of these problems. Some of the reasons toconduct such a review include:

• Ensuring the effective utilization of the organization’s human resources
• Reviewing compliance concerns with a myriad of administrative regulations
• Instilling a sense of confidence in management and the human resources function
• Maintaining or enhancing the organization’s and the department’s reputation in the community
• Performing “due diligence” review for shareholders or potential investors/owners
• Establishing a baseline for future improvement for the function

Either it’s HR or Finance Audit, its ultimate aim is to improvise the system and make it flawless. It is suggested to first done by Head of HR itself by communicating the team about the audit and its timeline so that team could update its pending working if any. Then, on announced date the concern would review the working as per the HR manual or procedure and in case of any non-conformity highlight it and give time to update the working in alignment of procedure.

Through, regular audit one must keep the working update and increase the efficiency through focusing on system rather than individual working.

Essential to maintain fairness and obeying rules and regulations.

HR audit involves a systematic analysis and evaluation of the efficiency and effectiveness of the HRM function and its contribution to the achievement of the organisation s strategic business objectives.