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How to prepare for an HR Audit

Hr Audit

Hr Audit

The ringing of the phone or the blip of the e-mail can give you strong emotions especially when you are aware that your company is on auditor’s list, who just want to ensure that everything is going as it should be in the company – flawless.

However, not all auditors want to come uninvited with the intention to find everything that’s not working. 

For instance, whenever an HR Audit happens, it is scheduled beforehand and their main purpose is to help to ensure your department is working at its full capacity.

These being said, how do you prepare for an HR Audit?


Know what type of HR Audit you want to be performed


Although an exhaustive HR Audit that focuses on everything is not unheard of, there are 3 types of HR audits that are usually scheduled, such as:

  • Record Audit
  • HR Functions Audit
  • Legal Compliance Audit

After you decide which type of HR audit will be made, it’s time for the next step.


Review primary functions and related documentation


No matter what type of HR Audit you have scheduled, make sure that the following areas are reviewed:


  •  Recruitment 


Make sure the strategy is reviewed, from job creation, job posting, interview to acceptance and rejection letters. Also, make a habit of reviewing job descriptions to be sure they are comprehensive, up to date and compliant.


  • Onboarding and employment 


Ensure you have the employment paperwork is completed and up to date. Moreover, review the employee handbook, check if it is compliant if all the policies are added and up to date.


  • Compensation and payroll


If there are benefits, ensure that all the full-time employees are receiving them. Moreover, ensure that the company is paying all the wages.


  • Termination and termination process


Have a look over all the paperwork that’s made when termination is decided.


  • Ensure that everything is compliant to the law

Address areas of concerns




After you reviewed all the policies, procedures and forms, ideally, the next step is to prepare a list of the things you believe they need to be improved or you are uncertain of and hand it to the auditors, to prioritize looking into them first.


Organize an assisting team 


When an HR Audit is about to be performed, is important to have an assisting team that can help to carry out the audit. Here is how the process should go:

  • Assign two company representatives – ideally the HR manager and eventually the legal counsel to work directly with the auditor. 
  • Review the procedures together with the auditor and request a summary of the investigations.
  • Reserve a quiet space where the audit can be carried out
  • Create a plan on how will you address any potential violations that might be found. 



Listen to the auditors



The whole purpose of the HR Audit is not to criticize, but to help you improve and to offer you several ways in which you can improve the overall performance and quality of the HR department.


These being said, have you scheduled your HR audit for 2020

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