What is a human resources audit?

This in-depth review of the current state of the company can serve to identify inadequate, illegal or ineffective policies and processes. The results of this study can help identify shortcomings in HR practices. The HR department can then prioritize these shortcomings in order to minimize litigation and regulatory violations, as well as achieve and maintain world-class competitiveness in key human resources areas. 

In short, a human resources audit involves identifying problems and finding solutions before the problems become too serious. A human resources audit is a way to identify things that an organization is doing well, as well as how some of its policies and actions can be changed for the better, how to make them more efficient, or how to make them less costly. money.

The human resources audit consists of two main parts:

1. Evaluation of operational policies, practices and processes in the field of human resources with a focus on key processes for the HR department (staff selection, staff retention, compensation, efficiency management, staff training and development, etc ..)

2. Review of current human resources indicators (number of vacancies, time needed to find a new employee, employee satisfaction, internal complaints, number of legal complaints, absenteeism rate, etc ..)

The human resources department usually conducts the audit using a questionnaire to assess specific practices. This paper assists the audit team in exploring all critical areas of the organization's HR practices. The audit may also include interviewing or using questionnaires to seek feedback from specific human resources officers and other department managers to determine whether all policies and procedures are understood and practiced.

Types of human resources audit

The human resources audit may be specific or more extensive, depending on the time, budget and human resources. There are several basic types of audits, each with different objectives. Some of the most common types of audits are:

• Compliance audit . It focuses on how well the organization enforces local laws and regulations.

• Audit of good practices . Helps the organization improve its policies by gaining a competitive advantage over companies that are considered to have exceptional HR practices.

• Strategic audit. Focuses on the strengths and weaknesses of the processes to determine whether they are aligned with the organization's human resources department and strategic plan.

• Specific audit. Focuses on a specific part of HR functions (payroll, performance management, etc ..)

What to include in the human resources audit?

The content of the human resources audit depends on the weaknesses of the organization. Therefore, you can keep a list of issues that you have encountered but have not addressed in the organization's procedures and policies.

Many organizations are vulnerable in several specific areas - recruitment, performance management, discipline, termination of employment contracts.

When to audit human resources?

Given the resources required to perform an audit, most organizations would not want to go through this process more than once a year. Mini audits can be done every 6 months. Another strategy is to do audits after major events, such as the introduction of new plans, changes in management, etc ..

What to expect?

Human resources auditing is a time-consuming process and may require a review of a huge amount of documents and policies, as well as feedback from the HR department, selected employees and managers from various departments.

Who should perform the audit?

The audit can be performed by your human resources specialists - if you have those with the necessary experience. Otherwise, you can hire an outside company.

Steps for auditing human resources

The human resources audit includes 7 main stages:

• Determining the scope and type of audit.

• Development of a questionnaire.

• Data collection.

• Measurement of results.

• Providing feedback.

• Creating an action plan.

• Promoting climate for continuous improvement.

Source: shrm.org .

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