Human Resource Auditing

Human Resource Auditing

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.

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 the audit
• Examining compliance with legal requirements and organization’s policies
• Identifying problem areas to avoid crisis situations 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 situations of merger and acquisitions