HR audit: What is it? Why is it important?

It doesn’t matter how many employees are part of your organization today, there’s always a time when you have to deal with difficulties or issues in human resources. From company policies to benefit packages, job descriptions, wages and salaries, everything that’s associated with your employees must be included in the HR management.

Especifically, an HR audit is an objective examination of your business’s HR policies, practices, and processes. The goal is to look for trouble spots and/or identify ways you can improve. 

You have options, so if you can hire an outside company to perform the audit or you can instruct your HR department to perform an internal audit both are good.

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HR audit: What is it? Why is it important?

Different lawyers recommend that their business clients perform human resources audits as a proactive measure to keep the company out of problems concerning legal issues. 

HR audits are important because they can identify HR successes and HR deficiencies as well. An HR audit every three months, six months or annually should be incorporated into the HR department’s activities and the results can be used to develop improvements in the departmental functions as well as your company’s workforce.

Human resource audit should be designed to objectively revise and evaluate all the strategies, policies, processes and procedures, structure, systems and documents of the organization’s human resource management in order to enhance organizational performance.  

Take into account what follows when doing an HR audit:

• Ensure that legal compliance and governance requirements are being met
• Confirm that business and talent management objectives are achieved
• Identify and manage all human resources management risks
• Make sure the organization’s human resources add real value

HR processes are dynamic so the HR audit is based on the principle that activities have to be re-addressed and refreshed constantly if they are to keep on being quick to respond to needs that are changing all the time. 

Now you understand more about HR audits. We hope this information is helpful for you to make decisions. Midtown HR is the company behind a hundred happy companies. We´re focused on simple solutions for payroll and taxes, propose benefits that really feel like benefits, keep up with employment law and also help protect your team. Let’s talk!