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What is an HR Audit?

 
 
Similar to a financial audit, an HR audit is a way to diagnose problems in a company’s HR department. An HR audit Company in India can be do through self-assessment, internally, or can be done by hiring a professional audit company, to undertake an audit. An HR audit and the subsequent HR audit report will pinpoint where there are weaknesses or risks in the HR department and help address these.


HR Audit: Purpose, Structure and Modalities

HR Audit is a process which studies the status and preparedness of the organization on critical factors involving and impacting Human Resource. The basic purpose is to find out how effectively ready the organization is to pursue its goals and face the challenges in the market place on a sustainable basis. The primary areas which this process would focus on are:
  • -> Organizational fundamentals viz., articulation of basic beliefs ad goals.
  • -> Organization Structure.
  • -> Human Resource Information System.
  • -> Talent Sourcing, acquisition, induction and deployment.
  • -> Employee Engagement.
  • -> Statutory Compliances (on Human Resource related Issues).
  • -> Performance Management System.
  • -> Consequence Management System.
  • -> Talent Development System.
  • -> Talent retention and stability.

The Hr Audit Service in India will sequentially include:


  • 1. Meetings with top management.
  • 2. Examining documented fundamentals including inter alia, vision statement, mission statement, values, goals.
  • 3. Physical visits at the organization’s offices and work sites (if any).
  • 4. Meetings with senior and middle management at the above locations.
  • 5. Random interactions with junior management and staff, in groups and individually.
  • 6. Examining documents vis –a-vis HRIS, statutory compliances, PMS, recruitment, Induction, Job Descriptions, KRAs, Appraisals, Increments and Rewards et al.
  • 7. Studying HR related SOPs.
  • 8. Studying HR and Employee Manual
  • 9. Studying Disciplinary and Tasking processes.
  • 10. Meeting family members of staff at random (optional).

Each area can be customized to meet your company’s specific needs. In fact, depending on what your needs are, an HR audit can focus on a specific area, such as contracts or benefits, or cover the whole spectrum of an HR department’s activities.



The findings of these audits aid decision making in the organization and are usually internal documents that need not necessarily be shared with the public. Moreover, unlike Financial Audits that are routine, regulated and standardized, Human Resource Audits are non-routine and may be designed to cater to the unique needs of the organization at a particular point in time. These are in fact, studies of an unusual nature. The manner in which the Audit is conducted could vary from self-directed surveys to interventions by outside consultants.




 
An HR audit Sevice kolkata in India is time-consuming and costs money, so it is important to also understand what the benefits are about undergoing an HR audit. The main advantage is to pin-point risks and potential problem areas of an HR department. This is important, because these issues can damage morale and in the long-term the company’s competitiveness – in the worst case, a company could be breaking the law! This means that maintaining a professional and well-managed HR department is a win-win situation for everyone involved.