Curious About HR Audits? Which Companies Use Them and How Do They Work?

Raghavendra143
Hi,

What is meant by HR audit and process? Nowadays, which companies are using this method, and could you provide an example of a company?

Thank you.
Dinesh Divekar
Dear Raghavendra, The audit is defined as "A methodical examination or review of a condition or situation." When an audit of the HR department is conducted, it is carried out on two counts. One is by the regular auditor of the Audit department. Generally, they check the attendance records, whether proper leave records are maintained or not, and if there is any excess disbursement of salary, etc. However, the above audit is a basic one and does not consider the functional aspects of HR.

HR Audit Structure

I provide consulting services on HR Audits. For this, I have divided the audit into three parts, as follows:

- Functions of the Personnel Department
- Functions of the HR Department
- Advanced functions of the HR Department

This step-by-step approach helps us stabilize the HR function. I have observed in many companies that although the department is named "HR Department," it does not meet the requirements of the Personnel Department. The HR Department has evolved from the Personnel Department, but this does not imply that some activities of the personnel department are obsolete today.

The second benefit of dividing the HR Audit into three parts is to avoid getting lost in HR jargon. Sometimes HR tends to focus more on using jargon rather than the practical aspects of their function, and I strive to avoid this.

Thanks,

Dinesh Divekar [Phone Number Removed For Privacy Reasons]
Vijay Kumar HR Trainee
Dear Ragavendra,

HR audit is conducted to ensure that HR standards are followed accordingly. HR audit comprises:

1. Identification of training needs
2. Preparation of training calendar
3. Training attendance sheet
4. Training effectiveness form
5. Skill matrix
6. Recruitment and selection process
7. Induction and joining formalities
8. Statutory compliance
9. Salary disbursement
10. Contractual agreements

This is the extent of my knowledge on the subject.

Thank you.
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