The HR audit is the process of examining intensely and objectively the organization’s HR policies, procedures, documentation, systems, practices and strategies to protect the organization from litigation, establish best practices, and identify opportunities for improvement. An objective review of the employer’s “current state” can help evaluate whether specific practice areas are adequate, legal, and effective.
In a nutshell, the HR Audit gives organizations the opportunity to assess what the organization is doing right, as well as how things might be done differently, more efficiently, or at a reduced cost. It also helps the company identify outsourcing opportunities and cost saving strategies.
The audit process consists of a succession of questions covering the primary components of the HR functions in the following areas.
- Organization Structure
- Compensation & Benefits
- Employee Relations
- Safety & Security
- Record Keeping and Other Documentation