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Scope and the Benefits of HR Audits

Updated: Jun 23, 2022

HR Audit is the review and assessment of HR System to ensure compliance and effectiveness of HR.


- To ensure compliance with Local Laws

- To identify gaps or irregularities

- To develop the scope of improvement

- To establish credibility

- To Impetrate reliable and measurable data

- To establish trust and aid to internal employer branding

- To asses HR effectiveness to company's bottomline

HR Audits in most of the organizations is limited to Audit of employee documentation or compliance related because of various reasons such as a) Audits being perceived as a cumbersome process. b) the purpose of Audits are not developed / clearly communicated c) lack of expertise to develop models to audit other HR processes / prepare accurate reports. d) Subjectiveness / abstractness of audit reports. However, there is more logical explanation to these myths.

A good book to read on same

Scope of HR Audit:

HR audit involves examining and reviewing the organisation's existing policies, procedures and practices of Employee Lifecycle.

This involves:-

  • Audit of HR Function

  • Recruitment and selection

  • Onboarding / orientation

  • Training and development

  • Job analysis and job evaluation

  • Compensation and recognition

  • Employee health and safety

  • Career Assessment and Organizational Development, etc..

  • Audit of Compliance

  • Audit of Culture and communication

  • Morale and motivation

  • Job Satisfaction

HR Audit driven by a purpose gives a statistical view point to analyze need for improvement and best practices.

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