An HR audit is a thorough review of the company’s human resources processes, activities, and procedures. The aim is to recognize problem areas and/or areas that you can change. You have the option of hiring an outside firm to conduct the audit or instructing the HR department to conduct an internal audit.
Types of HR Audit
Under the limitations of time, budget, and personnel, the HR audit may be designed to be either in-depth or short. There are many types of audits, each of which is intended to achieve a particular goal. The following are some of the more popular types:
- Compliance: This section examines how much the company adheres to existing federal, state, and local laws and regulations.
- Best Practices: By contrasting the organization’s operations to those of firms listed as having outstanding HR practices, it will retain or boost its competitive edge.
- Strategic: Examines the benefits and limitations of programs and procedures to see if they are in line with the HR department’s and organization’s strategic goals.
- Function-specific: Focuses on a particular aspect of the HR role (e.g., payroll, performance management, records retention).