Significance of Periodical HR Audits in an Organization
Significance of Periodical HR Audits in an Organization
HR Audit
(Source: HRM exam, 2020)
Key Areas Examined by HR Audits
The areas focus by an HR audit is depending on organizational resources, time and requirements. However, there are few key areas that examined mostly by HR audits.
Ø Compliance – HR audits evaluate the organizational compliance with local and international human resource related laws and policies such as employment law, safety laws etc. It ensures the organization’s compliance with available laws.
Ø Best Practices – Here, HR audits looking for the best practices for organizational workforce such as industry standards, payroll, employee handbooks etc.
Ø Performance - Here, auditors focus on employees’ personnel files and evaluate their performance and goal achievements. Then provide feedback for employees to improve their performance.
Ø Competitiveness – Here, auditors review the competitiveness of organizational compensations and benefits for employees and provide feedback on compensation system.
Ø
Function specific – This kind of HR
audits review specific areas of HR policies and procedures such as payroll
management etc.
Why Periodical HR Audits are Important?
Conclusion
HR audits are largely contributed to evaluate and identify
the improvement areas of organizational human resource function as the
effectiveness of human resource practices is key for achieving organizational
goals and objectives. Organizations can be proactive for organizational human
resource related problems and can get corrective or proactive actions for
managing those issues
References
Batra, G. S., 1996. Human resource auditing as a
tool of human resource valuation: interface and emerging practices. Managerial
Auditing Journal, pp. 1-15.
Botha, C., 2015. HR
Audits move from purpose to process: HR standards-update. HR Future, Volume
II, pp. 34-35.
Cannings, A. &
Hills, T., 2012. A framework for auditing HR: strengthening the role of HR in
the organisation. Industrial and Commercial Training.
Curtice, J., 2004.
The HR audit for legal compliance and safe business practices. Employment
Relations, XXXI(2), pp. 55-66.
HRM exam, 2020. HRM
exam. [Online]
Available at: https://www.hrmexam.com/hrm-audit-and-evaluation/
[Accessed 25 Novemeber 2021].
Olalla, M. F. &
Castillo, M. S., 2002. Human resources audit. International Advances in
Economic Research, VIII(1), pp. 58-64.
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This ensure that a company remains compliant with the local HR laws, also it can mitigate risk of liability for unfair employment practices.
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