What is and How does an HR Audit Work?

The definition of human resource audit is the act of evaluating a company’s HR processes and policies to determine potential areas that may require improvement and those that perform well. Companies use HR audits to guarantee compliance and align human resources programs with business goals. In essence, it contributes to efficient organizational performance.

HR audits are similar to the internal process audit. To expound, it provides HR departments with report cards of its effectiveness. Likewise, it identifies fields of non-compliance to reduce business risks. The bottom line is it reinforces processes so improvements are implemented in the following areas:

1. Recruitment
2. Onboarding
3. Retention
4. Training
5. Compensation
6. Payroll
7. Performance Management

Audit AppSteps

After understanding the definition of human resource audit, the next is to know the seven steps involved in HR audits which may vary from one organization to another.

1. Briefing – This is the preliminary meeting of authorized personnel to discuss significant concerns, draw up audit procedures, and create audit plans and programs.
2. Check ‘Material Information’ – It means examining all available information concerning employees, employee manuals, evaluation forms, recruitment materials, IT capabilities, and related areas.
3. Survey of Employees – Surveying employees include interviews with top executives, key managers, and employee representatives (if needed). This is meant to pinpoint problems, strengths, projected requirements, and managerial viewpoints on HR.
4. Conduct of Interviews – Prepare a list of relevant questions. The direction of the HR audit depends on the issues identified after examination of information collected for this purpose. Audit efforts will be successful if important factors in the management of human resources chosen for audit are clarified along with pertinent questions that should be assessed.
5. Integration – All data gathered are integrated or combined to identify the existing situation, priorities, staff patterns, and current problems. At the same time, future requirements are determined and the proper criteria are developed to know HR priorities and proposed recommendations.
6. Appropriate Reporting – The last step is to extensively discuss audit results. Managers and staff specialists comprise the team involved in discussions. Issues that are listed are submitted to management in a formal written report. Follow-ups are essential after an HR audit to find out if the action plan for resolving issues worked or was not effective.

The HR audit is a vital approach to HR planning. It must be performed very well to be effective. As a result, the company can look forward to proper implementation of HR policies, planning, and programs. A regular and organized audit helps HR professionals create and update their employment programs.

PCS Prostaff – Certified Solutions Provider

If you want assistance in the formulation and conduct of human resource audit, do not hesitate to contact PCS Prostaff immediately.

We have been in the business of providing for different business organizations in California and adjacent states during the last 20 years. As a service provider, it ensures ease of payroll processing as well as systematic management of company payroll.

You can always visit our company website at https://pcsprostaff.com/ to see our competencies and know the services that we offer. Or call us at these numbers 866-413-4103 during business hours to set an appointment with our HR specialists.