What is an HR Audit?

A Human Resources Audit is a comprehensive review of 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 HR Audit involves systematically reviewing all aspects of human resources, usually in a checklist fashion.

 

Sections of review may include but are not limited to:

  • Recruitment and Selection
  • Training and Development
  • Equity and Diversity Compliance
  • HR policies
  • Compensation and Benefits
  • Performance management process
  • Termination process and exit interviews
  • Employee engagement and retention
  • Job descriptions
  • Form review
  • Personnel file review

 

The purpose of an HR Audit is to recognize strengths and identify any needs for improvement in the human resources function. A properly executed HR Audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems. Some of the reasons to conduct 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
  • Improving HR processes and systems to better align with corporate priorities
  • 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 human resource function

 

Contact myHRpro today to discuss how an HR Audit can benefit your organization.

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