A Human Resources Audit or HR Audit is a thorough technique or means to survey current HR strategies, methodology, documentation and frameworks to recognize requirements for development and improvement of the HR work just as to evaluate consistence with regularly changing tenets and directions. An Audit includes efficiently investigating all parts of HR, generally in an agenda style.
OBJECTIVES OF HR AUDIT
• To review every aspect of management of HR to determine the effectiveness of each programmes in an organization.
• To seek explanation and information in respect of failure and success of HR.
• To evaluate implementation of policies.
• To evaluate the performance of personnel staff and employees.
• To seek priorities, values and goals of management philosophy.
TYPES OF HR AUDIT
• Legal Compliance Audit: This audit ensures compliance with all applicable federal, state, and local laws and reviews whether the current HR policies and systems meet the legal requirements.
• Comparative Audit: This audit involves comparing the current procedures of the organization with other organizations in the market that have proved to be successful in practice, in order to gain a competitive advantage.
• Strategic Audit: This audit involves evaluating the SWOT (Strengths, Weakness, Opportunities and Threats) analysis of the HR processes to ensure that they are in alignment with the organization’s strategic plan.
• Function-Specific: This audit focuses on specific functions in HR such as Training, Compensation and Recruitment and helps to measure their effectiveness in relation to long-term business goals.
STEPS FOR SUCCESSFUL HR AUDIT
• Determine the scope: The first step of conducting an HR audit is to determine the scope of the audit. If an HR audit has never been conducted, a comprehensive review of all policies and procedures is recommended. Going forward, businesses may choose to conduct audits that focus on specific HR functions, such as payroll or record keeping.
• Develop a plan: The next step is to develop a plan for conducting the audit. Identify the goals of the audit, assemble the audit team and create a timeline for completing the audit.
• Gather and analyze the data: Once the audit begins, the audit team should gather all the applicable documents and forms under the scope of the audit. The audit team should also review current and potential legal actions.
• Produce a report: After all of the necessary information has been analyzed, the next step is to create a report with the findings of the audit. This report should identify any strengths and weaknesses found during the audit, as well as offer recommendations to correct any instances of noncompliance.
• Create an action plan: Once the audit is complete, company executives should meet with the audit team to discuss the findings and formulate a plan to address each problem or area of concern identified in the report. Action items may include changes to policy, procedures and/or hr practical training practices. Organizations should also consider their available resources when setting a timeline for correcting noncompliance issues, and ensure any corrective actions are realistic and achievable. In addition, organizations should take measures to ensure the audit information is kept confidential and protected from unintentional disclosure.
• Evaluate the progress: Once corrective measures have been implemented, organizations should continuously monitor and periodically review the new processes or procedures to ensure the organization stays compliant.
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