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HR Audits – What Are They, Exactly?

Simply put, a Human Resources Audit is an assessment of policy and procedure. 

While the term audit can conjure ominous thoughts of intervention, it is really more of a check-up and allows a business to achieve full compliance by comparing existing practices to current legal requirements. 

The audit process involves a whole-of-business assessment. Each of the following will be explored:

  • Recruitment & Selection
  • Induction Processes
  • Awards & Contracts
  • Personnel/Administrative Requirements
  • Employee Time Books &/or Time Sheets
  • Compensation & Benefits
  • Performance Management
  • Performance Counselling – Conduct, Capacity & Performance
  • Anti-Discrimination & Sexual Harassment
  • Dispute/Grievance Management
  • Termination/Separation Processes
  • Training & Development Policies

After procedure in each area of the business is reviewed, a report is written.

The report offers a description of the current practices, details of relevant requirements/risks, potential benefits and general recommendations

Most importantly, a HR Audit provides a business with a clear indication of where it stands. It highlights specific opportunities for change to improve that standing in terms of compliance. The audit report also provides recommendations to help you achieve best practice, over and above legal compliance.

JP Smith is here to help. We welcome your questions about Human Resource policies and procedures and are experts in conducting HR Audits. Our experienced HR Consultants will support you in managing your people to get the best outcome for your business.

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