HR audits are used to assess the compliance of your HR policies and procedures. They can diagnose issues before they become real problems and help you find the right solutions.
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What is a Human Resources Audit?
A Human Resources Audit (or HR Audit) is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to assess compliance with ever-changing rules and regulations. An Audit involves systematically reviewing all aspects of human resources, usually in a checklist fashion.
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Sections a review should include:
- Hiring and Onboarding
- Performance evaluation process
- Termination process and exit interviews
- Job descriptions
- Form review
- Personnel file review
The purpose of a HR Audit
The purpose of an HR Audit is to recognise strengths and identify any needs for improvement in the human resources function. A properly executed Audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems. Some of the reasons to conduct such a review include:
- Ensuring the effective utilisation of the organisation’s human resources
- Reviewing compliance in relation to administration of the organisation
- Instilling a sense of confidence in management and the human resources function
- Maintaining or enhancing the organisation and the department’s reputation in the business
- Performing “due diligence” review for shareholders or potential investors/owners
- Establishing a baseline for future improvement for the function
Because of the multitude of laws affecting each stage of the employment process, it is extremely important for an employer to regularly conduct an HR analysis of their policies and practices. This helps to identify regulatory compliance issues if they exist and avoids potentially costly fines and/or legal challenges, if otherwise ignored.
While tribunal awards help defines the risk of non-compliance and signify the importance of conducting periodic HR Audits, an Audit can also ensure that policies and procedures are fair and consistent across the organisation and strengthen employee satisfaction. By maintaining a satisfied and productive workforce, an employer lessens the expense associated with costly turnover of staff. Losing one employee is estimated to cost a company 50 – 150% of the lost employee’s salary in time and money spent to replace that employee.
What our clients say
Optimal People and Business are experts in all things HR. We worked successfully with them to produce a series of information videos to help businesses during the Corona lockdown. We are looking forward to working with them again in the near future as we grow our business.
We personally dealt with Vici at Optimal and she was a delight. She was open and honest and gave great advice and guidance. She helped us deal with what could have been a very difficult dismissal with a problematic member of staff. I would not hesitate to recommend Vici to any business for their HR.
Can’t thank Mel and the team enough. Really helped my business in a crisis. Looking forward to working with you and the team.
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Amazing service and support from extremely knowledgeable people, who also take great care in the standard of their work. Can't fault them, thank you so much!
5* all round, Mel was extremely helpful and answered all my questions, very friendly and professional. Recommended to others and would definitely use again. Thank you again Mel and Helen.
Mel and her team are fantastic, help me all along the way with some complex issues. Couldn't recommend more.
I've used Optimal PBS on a couple of occasions now to assist with due diligence on an acquisition i've been working on and also to provide contract and handbook production. Cannot fault the support or advice provided.
We love this company and Mel is a god send to our business, she sorted everything for us from employee contracts to helping us source the right accountant, she is at the end of the phone whenever I have any HR questions (even when on holiday) can not fault her commitment. Keep up the good work!
Meet our HR experts
Our team have significant experience of supporting our clients with all of their requirements