Human Resource Audit

The HR (Human Resource) Audit is the process to evaluate a human resource department’s performance. It examines various aspects of the HR tasks in a company. These can be policies, processes, procedures, documentation, and systems.

Purpose of HR Audit

  • Ensuring compliance of the company’s working with the governing laws
  • Helping the HR Department understand how to improve itself
  • Reviewing and the proper resource allocation for human resources
  • Being an act of “due diligence” for potential investors and stakeholders of a company
  • A basis for improvements in the future

Human Resource Audit Checklist

1. Employee Records

  • The first thing is to check the working of your Human Resource Information System (HRIS). You must have a proper HRIS to track and search the information efficiently.
  • Ensure that you have the I-9 forms in order and all other personnel files.
  • Keep the sensitive information of the employees separate. One example here can be the health information of the workers.

2. Employee Handbook

  • Have a legal counsel look at the national, state, and local laws for employment that may have a say in your office policies.
  • Conducting an annual checkup on the handbook to ensure no mistakes take place
  • Making the workforce aware of any new changes in the handbook and getting their acknowledgment for the same.

3. Hiring & Onboarding Process

  • Reviewing that your Applicant Tracking System (ATS) is working at par and as per your requirements.
  • Ensuring and checking up on the viability of the recruitment tools the company
  • uses
  • Appraise the idea of implementing a buddy or mentor system for new hires

4. Compensation

  • Check up on the national pay scale to offer a competitive salary package and locate any pay disparity based on race, disability, gender, caste, etc.
  • Build up a system to establish how you determine a hike in salary.
  • Review the governing salary law to check up on issues like average salary, minimum wages, etc.

5. Performance Evaluations

  • Have a look at the performance appraisal tool you’re using currently and see if it is meeting your requirements
  • Decide on an appropriate period to judge the performance of the workforce. Also, decide on a system to determine employee promotion and employee demotion.
  • Check up on any favoritism in the workplace harming the performance appraisal process.

6. Benefits

  • Check up and update the current employee benefits package to offer a more competitive package to workers.
  • Effectively communicate the benefits package to the working staff. Most workers don’t understand what advantages they have in the first place. An example of this is the ESIC benefit that most individuals don’t know how to use.
  • Get to know what benefits your employees require the most. You may turn to pulse surveys to understand different employee persona and which benefits would suit them best, etc.

7. Training

  • Decide on the training programs for new hires of every department.
  • Consider having a mentorship program within a company to train juniors by seniors.
  • Conducting yearly corporate Equal Employment Opportunity (EEO) training.