Human Resource Auditing

The bottom line of every business is to make a profit. In order to make this profit the owner of the business must make sure that all its assets are properly utilized and nothing is wasted. Now under the asset category also come the employee’s a.k.a. human resources. We must keep in mind that employee issues and their performance have a direct impact and effect on our profits, as we can see below:

Like all other assets the HR and all its derivatives must be checked periodically to see that all systems are in place and are working properly. For this purpose we have a system and method that serves this purpose and for it we have coined the term “Human Resources Management Audit”

This audit, like other audits measures the output of the human resources and its effectiveness under the given circumstances. The audit of human assets is analytical rather than prescriptive. It helps the mangers align the Human Resource function with the current business goals and objectives and encourages them to derive their own workable systems to serve the respective purposes.

Periodically conducting HR Audits can benefit companies by helping them to:
• Improve the entire communication system
• Identify policies and procedures that need to be updated
• Rectify any policy or procedure that is not in compliance with the law
• Find out about unwanted , illegal or negative unwritten practices
• Check whether procedures and practices are communicated and understood properly
• Identify policies and procedures that are not followed and find out why
• Point out urgent changes required to assure broader compliance
• Identify opportunities for new policies or procedures that will help minimize future risk
• Determine whether record-keeping practices are being followed
• Identify where additional training or communication would be helpful for compliance
• Obtain the desired working efficiency out of the available human resources

The audit process consists of a series of questions covering the eight primary components of the HR function:
• Roles, head count, and HR information systems
• Recruitment
• Documentation
• Training, development, and career management
• Compensation and benefits
• Performance measurement and evaluation
• Termination and transition
• Legal issues and personnel policies

The HR Audit report if complied properly will not only highlight the major issues involved in non-compliance, but will also give suggestions and recommendations for rectification. The HR Audit can be conducted internally, but the best results appear if done by an unbiased external third party, as in the case of regular audits. The audit works best when the focus is on analyzing and improving the HR function in the organization.Corporate Communications not only provides clients with the facility of conducting their HR Audit, it also frequently conducts trainings to equip the workforce with the knowledge to perform it themselves.