Here are some frequently asked questions (FAQs) regarding human resources audits:
What is a human resources audit?
An HR audit is a detailed and objective review of your human resources practices, policies and procedures. A successful audit can help you identify areas of risk and ineffective processes, so you can resolve issues before they become larger issues. Audits can save your organizations thousands in fines and fees for ineffective practices.
Why is it important to conduct a human resources audit?
Human resources is a complex and risky competency. Knowing what you are doing correctly and what needs attention is critical to the health of your organization.
What are the key objectives of a human resources audit?
- Identify non compliance
- Organize files, documents, and programs in a way that are easy to access and examine.
- Discover inefficiencies and areas that are not well understood or communicated effectively.
- Remediate findings
- Communicate changes to the team.
How often should an organization conduct a human resources audit?
At least annually. It is a best practice to break audits into manageable sections and focus on one section every 1-3 months.
Who typically conducts a human resources audit?
A human resources audit should be conducted by the person or team that has the most knowledge and access to the human resources practices and data in the business. This can be the owner, human resources professional, Office Manager, or other titles based on the structure of your organization.
What documents and records should be reviewed during a human resources audit?
Check out our HR Audit Checklist for a listing.
What are the potential risks or consequences of not conducting a human resources audit?
The risks and consequences can be substantial and costly. The Department of Labor and related agencies impose expensive fines for non compliance.
How can an organization address the findings or recommendations from a human resources audit?
Auditocity provides direction on what needs to be remediated or considered. We provide links and tools to help you along the way.