Human Resource Audit | Meaning and Definition

What is a Human Resource Audit?

Human Resource Audit is actually the systematic method that was introduced with the intention of conducting investigations on currently happening Human Resource practices and policies. Human Resource Audit, just like any other kind of business audit, also takes place with the basic intention of avoiding errors and achieving the desired goals and targets. 

There is a practice phase in the Human Resource Audit. This practice has proved to be quite useful as it has helped in recognizing the areas that need improvement. The process of practice and figuring out the weak spots requiring improvements has shown itself to be extremely helpful as this not only increases the efficiency of the company but also helps them achieve targets faster and create a better working environment for everyone. An external company or even an internal HR department can be responsible for running the Human Resource Audit. 

There are a few inspections done by the HR Audit on areas like –

  •       Practice
  •       Performance
  •       Policies
  •       Function etc. 

There is a list of steps and or phases that the Human Resource Audit is required to follow at any cost. This list of steps and or phases is of absolute necessity for the Human Resource Audit to run smoothly and for even the process to run efficiently and properly. The names of the phases and steps are mentioned in brief below –

  •       Pre-audit information
  •       On-site review
  •       Record review
  •       Audit report 

Out of all the four steps, the first three phases are involved in the collection of information based on their quality and quantity. The final phase of the HR Audit is the Audit Report which basically means creating a report that has the complete analysis in it.