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.
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Scope of HR Audit:
HR audit involves examining and reviewing the organisation's existing policies, procedures and practices of Employee Lifecycle.
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
HR Audit driven by a purpose gives a statistical view point to analyze need for improvement and best practices.