Steps for an Effective HR Audit

Although HR Audit is not mandatory like a financial audit, it is essential to review an organization’s human resources functions to verify if they are compliant with the government regulations and are aligned with the organizational goals. To make the HR audit process simplified and ensure that it serves the purpose effectively; experts from HR consultancy services have outlined a few steps.

Establish the scope: The initial step for conducting an HR audit is determining the scope of the audit. It is required that there is a clear understanding regarding what needs to be evaluated and at what level. It has to be defined clearly even before the audit procedure if the organization needs a comprehensive human resource functions audit or an audit for a specific function or practice.

Prepare a plan: HR consultants insist that to successfully complete an HR audit, a perfect plan has to be developed by identifying the goal of the audit and the timeline to finish the audit. Planning an HR audit also requires deciding on the type of audit to be conducted that suits the audit requirements.

Collect data: As the next step, it is required that all the relevant data is collected and analyzed with the help of questionnaires developed to provide consistency to the data collected. For data collection, all applicable documents, forms, and information regarding various procedures, processes, and systems in place.

Use Benchmarks: Per the human resources consultancy professionals, it is crucial to use benchmarks and best practices to analyze the audit data. This is important to compare the results with other organizations in the industry and compare the results with the organization’s previous performance.

Prepare report: Hiring HR consulting firms that are proficient in HR audit is advisable as analyzing and reporting the findings of the audit is a specialized task and a significant step in the process of audit. The audit report should identify and contain the strengths and weaknesses of the human resources procedures that have been audited and recommendations if any.

Create action plan: The final step in the audit procedure is creating an action plan to address the shortcomings or problem areas identified in the audit report. The action plan should include any changes to be made to the policies, procedures or training programs. It should also mention the timeline within which the corrective measures should be implemented.

In instances where organizations do not have an in-house HR department that can conduct HR audit, they would need to take the support of HR consulting firms to conduct the HR audit and also periodically monitor if the suggested measures are being implemented appropriately or not. For further information and support related to HR audit consult Accuprosys, the best human resources consultancy in Hyderabad.