What is a Human Resource Audit?
First things first, let’s explain what exactly a human resource audit is.
An HR audit is an objective examination of an organization’s HR policies, practices, and procedures. It aims to pinpoint block spots in your company’s HR measures and identify ways in which you can improve your measures as a whole. When performed internally by your HR executives, the audit is referred to as an internal audit and when initiated by an outside company, the procedure is referred to as an external audit. Both serve similar functions and are extremely useful and necessary.
Most companies perform audits for their taxes and other procedures, so it is only right that one is completed regularly and thoroughly for HR practices too. Though outlining, performing, and reviewing an HR audit may seem overwhelming and time-consuming, it’s necessary. It is as important as your other HR management responsibilities such as hiring and onboarding new employees and organizing payroll. Continuously improving your HR policies ensures that your company is improving, compliant with relevant employment laws and regulations, and your workforce is content.
Organizations can use an HR audit to ensure compliance and align HR programs with business objectives. It’s a way for all businesses and groups to take stock of their processes and ensure that they all contribute to an organized, motivated, and optimum performance.