An audit is a means by which an organisation can measure where it currently stands and determine what it has to accomplish to improve its human resources function. It involves systematically reviewing all aspects of human resources, usually in a checklist fashion, ensuring that government regulations and company policies are being adhered to. The key to an audit is to remember it is a learning or discovery tool, not a test. There will always be room for improvement in every organisation.
An Human Resource Audit provides a quick way to take stock of a company’s human resources and practices with an eye toward improving them. While there are different ways to conduct an HR audit, depending on the company’s goals, audits usually involve interviewing senior and mid-level management, reviewing the company’s HR policies and forms, and sometimes even surveying employees. The advantage of HR audits is that they bring a level of expertise to bear on issues that, while important, most companies simply do not have the time or capacity to undertake themselves.
An Human Resource Audit provides a quick way to take stock of a company’s human resources and practices with an eye toward improving them. While there are different ways to conduct an HR audit, depending on the company’s goals, audits usually involve interviewing senior and mid-level management, reviewing the company’s HR policies and forms, and sometimes even surveying employees. The advantage of HR audits is that they bring a level of expertise to bear on issues that, while important, most companies simply do not have the time or capacity to undertake themselves.
A basic audit will address compliance issues such as, the hiring process or personnel policies. We recommend a fuller assessment to address possible organisation design issues and to identify opportunities for making better use of the company’s human resources. Once the audit is completed, the findings are presented to management. What happens after that depends on management. The company owns the findings and can choose whether, when, and to what degree to act on them. The HR Audit helps by:
- providing feedback on the value of the contribution of the HR function to the organisation's strategic business objectives
- assessing the quality of HR practices, policies and delivery
- reporting on extent of statutory HR compliance and remedial action required
- assessing HR and line management relationships and ways these can be improved
- setting guidelines for establishing HR performance standards and
- identifying areas for change and improvement with specific recommendations The HR Audit focuses on the following elements of People Management:
- Organisational Data
- Strategic HRM overview
- Staff Communication and Change Management
- HRM Operational Delivery
- Staff Performance and Morale and
- HR Performance Measures
PURPOSE OF HR AUDIT
- To insure the effective utilization of an organisation’s human resources.
- To review compliance with a myriad of administrative regulations.
- To instil a sense of confidence in management and the human resources function that it is well managed and prepared to meet potential challenges.
- To maintain or enhance the organisation’s and the department’s reputation in the community.
- To perform a "due diligence" review for shareholders or potential investors/owners.
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