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Why would Your Organization want to Conduct an HR Audit?

The changing Nature of Human Resources Management demands that Human Resource Departments participate and contribute as strategic business partners. Qualifying and quantifying this role can be difficult. That is where a formal HR audit can help by:

Ensuring Legal Compliance
Identifying Areas for Improvement
Identifying Root Problems
Justifying Costs
Measuring Performance against Standards
Measuring Results
Quantifying Efforts

What Is Covered in an Audit?

A broad based review of all topics central to HR Management
All activities within the HR span of control
Future Project components
Any Problem Areas

What should a Human Resource Audit Measure?

That depends on the organization’s objective. In general a business has the following objectives, but the questions will vary based on the size, culture and industry:

Business Growth
Competitiveness
Culture
Profitability
Product Development/Efficiency/Quality
Return on Investment
Safety, Health, and Environmental

The audit should address each of these components by measuring the Department's Knowledge, Productivity, Quality, and Service.

What Does a Human Resource Audit Look Like and How Long Does it take to Perform?

Audit Formats can vary, depending upon the type requested. Typically they are in questionnaire format, requiring samples of work. The questionnaire may take from 2-4 hours to complete and one week to two weeks to obtain results.

Audit Description

Each audit consists of both experienced-based questions designed to obtain quantitative data and customized questions that companies may wish to add. Categories include:

Compensation
Employee/Labor Relations
Equal Employment and Affirmative Action Compliance
HR as a Strategic Business Partner
Immigration Law
Staffing (Internal/External)
State and Federal Laws
Training and Development
Performance Management
OSHA/Job Safety
Wage & Hour

Human Resource Audits typically require the review of Employee Advancement, Compensation and Benefit Programs, Disciplinary Action Rules and Processes, Employee Handbook
or Union Contract, Procedure Manual, and Training Programs.