Importance of Conducting Regular HR Audits

What is the importance of HR audit? Basically, HR audits are made for the purpose of evaluating an organization’s compliance with HR policies and practices. Auditors can detect problems before these become more unmanageable and help Human Resources personnel determine the appropriate solutions.

A compliance audit is used to establish what the company is doing right, make the necessary adjustments, improve incompetence, and lower costs. Overall, it helps sustain the overall business objectives which can contribute to the company’s success.

How It Works?

For an HR audit to become effective, it is important to perform the process correctly. Here are some of the objectives accomplished with this exercise.

1. It helps correct errors of HR staff and promptly carry out remedial measures.
2. It determines whether managers and supervisors perform HR tasks in accordance with company rules and regulations.
3. It assesses the Human Resources functions regrading recruitment, onboarding, training, promotions, addressing of grievances, workplace environment, and many more.
4. It pinpoints which areas require cost-cutting.
5. It guides employees in maintaining discipline and preform required duties.

All these aspects indicate the importance of HR audit.

Areas of Focus

More often than not, the Human Resources audit focuses on these areas.

1. Legal compliance
2. Filing of records in adherence to data protection laws
3. Documentation
4. Performance appraisal
5. HR forms like employment applications, time-reporting, disciplinary notices, training requests, and other pertinent concerns

Audit Checklist

Here us what a typical HR audit checklist contains.

Manual and Review

1. Existing employee manual and Managers handbook
2. Managers trained on handbook contents, policies, and standards
3. Updating of policies and employee handbook

Policies/Procedures

1. Detailed policies are in place
2. Standard letter for procedures

Employee Discipline and Grievances

1. The number of disciplinary actions and grievances issued during the current year
2. Claims during the last five years

Data Security and Storage

1. Existing data security measures
2. Filing and storage of employee information

Recruitment, Retention, Performance Management

1. Application forms for positions
2. Availability of job descriptions
3. Job analysis for skills, capabilities, and know-how
4. Conduct of exit interviews

Recruitment

1. Process to determine job vacancies
2. Recruitment is associated with HR planning which includes estimated workforce requirements
3. Effectiveness and costs of measuring recruitment resources

Selection

1. Standard forms for interview and selection
2. Managers conducting interviews
3. Training of hiring managers for impartial selection like interview techniques, questions, and legal implications
4. Proper background checks before extending job offers
5. Clear procedure in notification of successful and unsuccessful applicants

Performance Management

1. Staff appraisals
2. Templates for standard appraisal
3. Training of appraisers
4. Importance of HR audit to analyze consistency during appraisal interviews

PCS Prostaff – Certified Solutions Provider

If your company needs to outsource your HR audit functions, don’t hesitate to contact PCS Prostaff.

Throughout the last 20 years, PCS Prostaff has provided services to all types of business organizations in California and adjacent.

Visit our company website at https://pcsprostaff.com/ or call us toll-free at 866-413-4103 to learn more about the services we offer and how we can assist you with your company’s training initiatives.