HR Audit

Human Resources Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to assess compliance with ever-changing rules and regulations. A periodic HR audit can qualify its effectiveness within an organisation. HR audits may accomplish a variety of objectives, such as ensuring legal compliance; helping maintain or improve a competitive advantage; establishing efficient documentation and technology practices; and identifying strengths and weaknesses in training, communications and other employment practices.

Objective of HR Audit

  • review the performance of the Human Resource Department and its relative activities in order to assess the effectiveness on the implementation of the various policies to realise the Organisational goals 
  • To identify the gaps, lapses, irregularities, short-comings, in the implementation of the Policies, procedures, practices, directives, of the Human Resource Department and to suggest remedial actions
  • To know the factors which are detrimental to the non-implementation or wrong implementation of the planned Programmes and activities
  • To suggest measures and corrective steps to rectify the mistakes, shortcomings if any, for future guidance, and advise for effective performance of the work of the Human Resource Department
  • To evaluate the Personnel staff and employees with reference to the Performance Appraisal Reports and suggest suitable recommendations for improving the efficiency of the employees
  • To evaluate the job chart of the Human Resource Managers, Executives, Administrative Officers, Executive Officers, Recruitment Officers, whether they have implemented the directives and guidelines for effective Management of the Human resources in their respective Department

Benefits of HR Audit

  • Identifies the contribution of Human Resource department to the organisation
  • Improves the professional image of the Human Resource department
  • Encourages greater responsibility and professionalism among member of the Human Resource department
  • Clarifies the HR department’s duties and responsibilities
  • Stimulates uniformity of HR policies and practices
  • Finds critical HR problems
  • Ensures timely compliance with legal requirements
  • Reduces human resource cost through more effective Human Resource procedure
  • Creates increased acceptance of needed change in the Human Resource department
  • Requires thorough review of Human Resource department’s information system