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The HR Audit: the whys, the hows and the whens

Hr Audit

Hr Audit

Understanding your people to grow your business: the importance of an HR audit

Although the fourth industrial revolution, the artificial intelligence is now in full bloom, people still remain the backbone of any company, in spite of its size – be it small, medium or enterprise. This is why their performance has a direct impact on your company, whether we talk about revenue increment or working resources. Thus, it is highly important to make sure that your human resources strategy is working at its full potential, not only to ensure your employee’s overall quality but also to ensure your business’s success as a whole.

To do this, there are several available methods, but we can swear by one: an HR audit, organized by a third party, who can glance into your procedures objectively, without being biased, therefore helping you to spot and to prevent as early as possible any issues that could go develop. 


What is an HR Audit?


As the name implies, an HR audit is a comprehensive methodology, having as main scope to analyze, evaluate and review the currently available human resources policies, procedures, documentation and systems. In a nutshell, it makes in-depth research to make sure that all the activities undertaken by the HR department are in-line with the overall organizational growth.


Why should your company schedule an HR Audit?


You might be wondering – why should we organize this? I’m pretty sure that my HRs are capable to do this all by themselves. What’s important to note is that the purpose of the HR audit is not to downsize your department’s activity by any means, but help them improve it.

HRs are, in fact, humans, and like any other humans, they can reach a point of burnout by the overwhelming activity or can be biased, thus not noticing that things can be made better or even simpler. Additionally, the business landscape is in a constant change, especially from a legal perspective, so the HR audit also comes as an aid to make sure everything is regulated and up-to-date.

Moreover, aside from peeking into the HR deficiencies, organizing an audit helps HR professionals to standardize areas, identify risks by themselves and align the HR strategy with the overall business growth strategy.

Done properly, the HR audit will be a great aid for the HR department, because its results will be made of meaningful actions to be undertaken, such as a timeline and resources allocation, that will grow the overall department performance. Furthermore, it will instill confidence in the HR and the department. 


The structure of an HR audit

A comprehensive human resources audit will focus on the structure presented below

  • Hiring and Onboarding
  • Benefits
  • Compensation
  • Performance evaluation process
  • Termination process and exit interviews
  • Learning and development
  • Personnel file review

Each one of them would be taken apart, see if it respects the legal compliance, see if any of the processes can be automated to ease work and if there are some issues, and if there are, how can they be managed and eventually how to be prevented in the future.


How often should you organize an HR audit?

Ideally, human resources audits should be scheduled yearly – like doctor’s checkups, to make sure everything is in order and especially to find concerning issues before they become burning and unmanageable. 

To conclude, HR audits are the to-go option for companies, of all sizes, which understand the importance of the human resources department. To put it bluntly, if your people are working at their full potential and are satisfied with your policy, then your company can only move forward. 

Have you organized your HR audit for this year?

Schedule one with us today!

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