HR Audits: What Are They and Why Should You Conduct Them

Audits are performed for companies to know if they operating efficiently and proficiently and specifically an HR audit is a tool to help a company determine if they are at their best in HR Practices. Paperwork organization, policies & procedures, as well as wages are reviewed to ensure the company is implementing and following needed guidelines. The goals and an audit is a way to see if the guidelines are met or if something needs to be worked on. They audit may be conducted internally or externally depending on the reason for an audit and should be done regularly for proper filing, taxes, to keep up with laws and regulations and to help the company stay on track.

Reflect on these key points:

  • 1An HR audit does not have to be a full audit that covers all areas. It is also possible to just perform a functional, compliance, organizational, or strategic audit.
  • 2An organizational audit checks whether everything is filed where it belongs, while a compliance audit checks compliance with federal, state and local laws.
  • 3A strategic audit checks whether HR is in line with and working towards achieving company goals.

“An HR audit is a tool to help a company determine that the HR department is functioning the way it is supposed to and covering everything it is chartered to cover. It is a specific look at the current state of HR and whether its specific practices are protecting the company and providing for the best use of their ‘human’ resources.”

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