Human Resource Management Audit: How to conduct an HR Audit?

Human Resource Management: How to Conduct an Audit

To ensure your human resource management strategies are effective, you will need to conduct HR audits from time to time. A human resource management audit is a comprehensive review of HR policies, procedures and systems to determine what areas need to be improved. An HR audit also ensures that your company is compliant with the ever-changing and developing rules and regulations that govern human resource management.

Areas covered under a human resource management audit may include:

Hiring and integration

Employee relations

Compensation and rewards

Employee benefits

Termination and exit interviews

Personnel file review

Performance evaluations

Legal compliance

What you should know before conducting a human resource management audit

You may think that an HR audit might interfere with the everyday matters involved in running your business. However, an HR audit can lead to increased profit margins by helping to make your operations more efficient. HR audits allow you to identify what is working and what needs improvement. If you schedule periodic audits, the process will be less time consuming and less taxing. An HR audit, ideally, should be conducted by an external HR expert who does not have any personal biases regarding the outcome of the review.

How is an HR audit conducted?

Several evaluation perspectives can be used in your audit — the comparative approach, statistical approach, compliance approach and the management by objectives approach.

Using the comparative approach, you will need to evaluate your company against another company’s HR model. With the statistical approach, numerical values are used to measure performance while the compliance approach is used to ensure that your organization is abiding by the rules of the governing laws. In the management by objectives approach, you measure your employees’ performance against your organization’s goals.

Do you need help with an HR audit?

If you are searching for an independent HR expert to help you conduct an HR audit, contact us at Pivot HR Services. At Pivot HR Services, our team has years of human resource management experience in both the public and private sector. In addition to HR audits, we offer consulting and advisory services as well.

We’ve built the model for our HR services on personalized attention, timely delivery, affordability and superior quality. We provide customized HR services that fit your organization’s culture, budget, and goals.

So, what are you waiting for? Give us a call today to schedule a free consultation with one of our experienced HR consultants. Let us help address your HR needs.

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