HR Audit

HR Audit – this refers to an objective examination of a company’s HR processes, policies, and procedures. It is done to try and identify areas which need improvement, as well as what strategies, practices and systems have worked well in terms of contributing to the company’s overall success.

There are multiple ways to measure the performance of the HR department:

Comparative: In this approach, the auditor looks for any company, usually the competitor’s company, as a model. The results of the business are then compared with that of the model company.

Management by Objective: In this approach, the auditor examines the performance of HR personnel against the goals set for the HR staff by the top level of management in the company.

Outside Authority: In this approach, the auditor uses standards set by an outside consultant and compares the business’ performance with that to assess their performance.

Compliance: In this approach, the auditor checks the past activities of the company to ensure that those act in accordance with the legal requirements and are obeying the company’s policies and procedures.

Statistical: In this approach, the auditor uses the statistical calculations of performance for the existing company’s information, such as turnover rates, absenteeism, etc.

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