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.
