Human Resource Audit
Human Resource Audit is a comprehensive method of objective and systematic verification of current practices, documentation, policies and procedures prevalent in the HR system of the organization. An effective HR audit helps in identifying the need for improvement and enhancement of the HR function. It also guides the organization in maintaining compliance with ever-changing rules and regulations. HR audit, thus, helps in analyzing the gap between ‘what is the current HR function’ and ‘what should be/could be the best possible HR function’ in the organization.
we will work with you to develop an HR audit program tailored to the needs of your organization or community.
A human resource audit examines all aspects of HR management and practice. PMC’s audit process generates recommendations to maximize the commitment, competence and value of all human resources.
Innovative human resource audit Solution
An HR audit will provide the foundation for the strategies, structures and programs that will enable your organization to meet the current and emerging needs of your members and stakeholders. The audit begins with a fact-finding consultation to gain an appreciation of your history, structures and challenges. Understanding your cultural and organizational needs and aspirations helps us recommend solutions that respect and take full advantage of the unique qualities of your organization or community.
Human Resource Audit
It is necessary for the top management to establish the terms and scope of the audit clearly before the external firm to make the audit successful. This includes defining the exact purpose of audit, viz. examining compliance with legal requirements and organization’s policies, identifying problem areas to avoid crisis situation with appropriate planning, analyzing ways to better serve the needs of relevant parties – employees, partners or society, measuring the work processes, seeking HR related opportunities available within the organization, dealing with situation of merger and acquisitions, etc.
Primary components of the HR system which are generally audited include – documentation, job descriptions, personnel policies, legal policies, recruitment and selection, training and development, compensation and employee benefit system, career management, employee relations, performance measurement and evaluation process, termination, key performance indicators, and HR Information Systems (HRIS).
Types of Audits
- Determine the scope and type of audit.
- Develop the audit questionnaire.
- Collect the data.
- Benchmark the findings.
- Provide feedback about the results.
- Create action plans.
- Foster a climate of continuous improvement.
What to Audit
- Misclassification of exempt and nonexempt jobs.
- Inadequate personnel files.
- Prohibited attendance policies.
- Inaccurate time records.