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HR Audit

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What is HR Audit

An effective HR audit helps in identifying the need for improvement and enhancement of the HR function. It also guides the organization in maintaining compliance with ever-changing rules and regulations. HR audit, thus, helps in analyzing the gap between ‘what is the current HR function’ and ‘what should be/could be the best possible HR function’ in the organization.

 

Though HR auditing is not mandatory like financial auditing, yet, organizations these days are opting for regular HR audits in order to examine the existing HR system in line with the organization’s policies, strategies and objectives, and legal requirements.

Why is it Necessary?

Audits can assist you in achieving a number of goals, including ensuring legal compliance, identifying gaps in processes and skills, maintaining or improving a competitive advantage, establishing efficient documentation and technology practices, and identifying strengths and weaknesses in training, communications, and other employment practices.

 

They can also serve as a reminder of tasks that are on the “To Do List” but need to be brought to the top of the priority list. In essence, a compliance audit will uncover your gap analysis and help you develop an action plan.

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How will it add Value to the Business?

Many firms and organizations, unfortunately, have no indication whether or not they have human resource concerns. Companies who do not undertake regular HR audits can dramatically harm their business, whether it is due to a blind trust, laziness, or a lack of awareness. Human resources, in fact, can make or break a company.

 

Here are some of the areas we examine during the HR audit:

  • HR Strategy: “Are your HR people or is your HR process truly aligning over here with what you need it to do from a business standpoint?”
  • Recruitment: “What ways can your business be more efficient and effective in attracting, developing, and retaining the best candidates for my business?”
  • Workplace Culture: “How can you take your employees to the next level?”
  • Legal Compliance: “Are you doing everything you can to avoid expensive litigation?”
  • Compensation & Benefits: “Is your compensation & benefits package hindering or enhancing your employees’ performance?”
  • And more…