HR Audit For Standardization In The HR Department - Husys

HR Audit – Tool For HR Effectiveness

HR Audit:

A Human Resource Audit is an important HR management control strategy to review present HR Policies, Procedures, systems and documentation to analyze the improvements to be made in HR operations also to assess statuary compliance with ever-changing rules and regulations. HR audit will provide the feedback about the HR functions to HR managers, which ensure how effective is the personnel programs. It also determines how effectively HR managers are planning and performing their duties. HR audits can be done by reviewing factors like- Hiring and Onboarding, Personnel File Review, Job Profiles, Form Review, Performance Evaluation, Compensation & Benefits, Training & Development, and Exit Process.

Why HR Audits?

• To review the performance of the HR department activities in order to assess the effectiveness of the deployed different policies to ensure the organizational goals.
• To take the necessary action on the feedback by identifying the lapse, gaps, irregularities, pitfalls, in the implementation of the policies, procedures, acts, practices, directives of the HR department.
• To Evaluate the HR team and employees with an assistance of performance appraisal reports and do necessary actions for improving the efficiency of the employees.
• To evaluate the job chart or hierarchy, to identify employees’ skills is effectively utilized in the organization or employee skills can be utilized in different roles.
• To seek priorities in values and goals of management decisions.

Who can carry out the HR audit?

A person, who know the roles and responsibilities of an individual in an organization, including the line staff, HR functions manager, and middle & upper management. They can carry out the HR audit if they have the expertise, ability to acknowledge imperfection in current procedures and implement the necessary changes. In case, if no one has the in-depth knowledge of the laws and regulations they can follow the strict audit procedures and protocols and consider hiring the third party to conduct the HR audit.

What are the different approaches to HR Audit?

An HR Audit is designed in different ways, each is designed to accomplish the specific objectives of an organization. Some of the more practiced HR audits are: Strategic: It focuses on the strengths and weakness of processes to identify whether they align with the HR departments or the company’s strategic plan. Compliance: It focuses on how well the organization is implementing the federal and labor laws and regulations. Function Specific: It focuses on every HR function and Operations such as Payroll, Recruitment, Performance Management, Administration, etc. Best Practices: This helps the organization to compare their HR practices with the similar organizations and implement the same in order to improve their HR management. Outside Authority: The auditor Compares with the standard rules as a measure by the outside consultant and then find the difference in their organization performance with that. Statistical: In this, the Auditor does the analysis of the existing organization performance such as turnover rates, revenue, individual performance outcome, and absenteeism. Management by Objective: The Auditor compares the HR performance against the goals set by the top management. MBO Approach: Under this approach, targets are fixed for every individual. The performance of every individual is measured by comparing with the individual set goals.

What to Audit?

What to audit will depend on the companies pitfalls and environment, the type of audit and the resources available. Before auditing, you need take care of all the procedures and policies which are not covered in the company are design and implement on priority base. Some of the main areas to focus on for audit are:

Failure in the classification of exempt and nonexempt Jobs:

In every company, there are some job profiles that company can consider for the overtime and for some profiles they can’t. Implementing laws in organizations which best suits to the employee based on their profiles and by keeping in mind the budget of the company.

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