HR Audit

 

Human resource audits can help identify whether an HR department's specific practice areas or processes are adequate, legal and effective. The results obtained from this review can help identify gaps in HR practices, and HR can then prioritize these gaps to minimize lawsuits or regulatory violations, as well as to achieve and maintain world-class competitiveness in key HR practice areas.

The HR audit consists of two main parts:

 

• An evaluation of the organization's operational HR policies, practices and processes with a focus on key HR department delivery areas.

• A review of current HR indicators.
   

HR audit helps an organization understand whether its HR practices help, hinder or have little impact on its business goals. The audit also helps quantify the results of the department's initiatives and provides a road map for necessary changes. HR Audits can also help the organization achieve and maintain world-class HR practices.

The HR audit can be either comprehensive or specifically focused. There are several types of audits, and each is designed to accomplish different objectives such as:

 

• Compliance. Focuses on how well the organization is complying with current local laws and regulations.

• Best practices. Helps the organization maintain or improve a competitive advantage by comparing its practices with those of companies identified as having exceptional HR practices.

• Strategic. Focuses on strengths and weaknesses of systems and processes to determine whether they align with the HR department's and the organization's strategic plan.

• Function-specific. Focuses on a specific area in the HR function (e.g., compensation, talent acquisition, performance management, learning and development).