Organizations are constantly evolving. But when it comes to policies and procedures, they often remain unchanged. To diminish legal issues and to ensure that your company complies with the labor and employment laws, it is important to perform a regular HR audit. While this sounds daunting, it is a valuable tool that will help your company stay up to date therefore facilitating it in its development. In this post, we’ll share with you how to effectively use an HR audit checklist. But first, let’s gain a better understanding of what this assessment entails and how to conduct a human resources audit.
HR Audit: Definition
The definition of an HR audit is a thorough review of the policies, procedures, documents, and systems in Human Resources. The purpose of this process is to provide recommendations that will help you improve operations and performance. Usually, HR professionals will carry out the audit. However, companies can also choose to hire an external company to conduct a human resources evaluation.
What are the Benefits?: Using an HR Audit Checklist
Whether the focus lies on policies or performance, a yearly review of your HR uncovers problems and challenges that exist within the department. Evaluating these issues allows your company to improve, and reduces the risk of litigations. Furthermore, using an HR audit checklist will guarantee that your company is in accordance with current HR and employment laws. So that managers have a clear vision of what’s happening in the company, enabling them to determine best practices, and discover opportunities for growth and development.
It will also have a positive effect on the employees, knowing that the company takes an active role in bettering their working conditions. These positive changes lead to an effective way of working and increased employee morale.
So why not download our free new and improved HR audit template, to make sure you are on top of everything going on in your company.
How to Perform a Human Resources Audit?
Although there are many different ways in which companies can utilize HR audits, most assessments follow the same structure. The HR audit consists of three parts. The first step is the pre-audit. During this phase, you will have to collect data. This information can be quantitative or qualitative, depending on the point of interest. The next step is the analysis of the data. Here you will assess the relevant information such as processes, procedures, policies, documents, and data. The final step is to draft a report that contains your findings and recommendations which will aid and help improve the success rate of the Human Resources team.
Considering the time and effort that you need to invest in a full-scale assessment, it is advisable to perform one audit a year. The completion of one HR audit checklist yearly should be enough for your company to obtain all the HR-related data it needs. When you make an assessment, you can choose to focus on the following areas:
- Training and Development
- Employee Relations
- Strategic Planning
- Best Practices
- Compliance with Laws and Regulations
Checklist to Effectively Conduct Your HR Audit Process
Before starting the assessment, you can create an HR internal audit checklist to stay organized and efficient throughout the HR audit process. This list contains detailed questions that apply to the different areas of Human Resources and is typically a couple of pages long. You can break down the hr audit questionnaire into smaller assessments by dividing the questions, which will make it easier to complete. Additionally, you can format the checklist in whichever way you’d like. It’s up to you whether you want to use a “yes” or “no” format to answer the questions or allow a more detailed answer.
Download Free HR Audit Template
Need a little extra help managing your audits this year, not to worry, we’ve got you covered. And what better time to conduct your HR audit than at the beginning of the new year. So why not download our free HR audit checklist and start 2021 on a good fresh start.
And, while you’re at it, save time managing your other HR processes so you can spend more time on your audit.
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