I am working as a Human Resource Manager with a Telecom company. We need to begin an HR Audit for our circles of operation. Since the concept is new to me I would like to understand the methodology of performing an audit.
An HR Audit is a great way to determine where your HR function needs improvement or identify where it is functioning well. An audit is a method an organization uses to measure current HR practices and determine what it has to accomplish to improve its function. An HR audit involves systematically reviewing all aspects of human resources, usually in a checklist fashion, ensuring that government regulations and company policies are being followed. The key to an audit is to remember it is a learning or discovery tool, not a test. There will always be room for improvement in every organization.
Most companies choose to do an audit to:
- Ensure the effective utilization of an organization’s human resources.
- Review compliance with a myriad of administrative regulations.
- Instill a sense of confidence in management and the human resources function; that it is well managed and prepared to meet potential challenges.
- Maintain or enhance the organization’s and the department’s reputation in the community.
- Perform a “due diligence” review for shareholders or potential investors/owners.
An HR audit typically includes:
- Legal compliance
- Compensation / Salary Administration
- Employment / Recruiting
- Orientation (Onboarding)
- Training and Development
- Employee Relations
- Recordkeeping / Technology
- Policies and procedures (including review of the employee handbook)
In addition to providing a comprehensive HR Audit in our service offerings, strategic HR inc. also offers a smaller, mini version of our HR audit called an HR Check-Up. The HR Check-Up is a great way to spot check your HR function. Using the same methodologies employed in our more extensive HR Audit, the HR Check-Up consists of a quick online survey and a short in-person conversation to discuss the finer details of the HR function within your organization. Our recommendations are then provided to you in a report card format with a check-list of items that may require additional attention. You can decide when and how to address those needs and will know which ones are critical and which ones can be tackled at a later date.