What is an HR Audit?

An audit is a means by which an organization can measure where it currently stands and determine what it has to accomplish to improve its human resources function. It involves systematically reviewing all aspects of human resources, usually in a checklist fashion, ensuring that government regulations and company policies are being adhered to.

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.

Why Do An Audit

1)To insure the effective utilization of an organization’s human resources.

2)To review compliance with a myriad of administrative regulations.

3)To instill a sense of confidence in management and the human resources function that it is well managed and prepared to meet potential challenges.

4)To maintain or enhance the organization’s and the department’s reputation in the community.

5)To perform a "due diligence" review for shareholders or potential investors/owners.

What does a full HR Audit entail":

1)Legal compliance

2)Compensation/Salary Administration

3)Employment/Recruiting

4)Orientation

5)Terminations

6)Training and Development

7)Employee Relations

8)Communications

9)Files/Record Maintenance/Technology

10)Policies and procedures (including employee handbook)

11)Communications