HR Process & Policy Audit Tool

Get HR Audit score to evaluate various aspects of your HR functions

Policies Guidelines
Section A: Policies Do you have Existing Policy?
Leave & Attendance Policy
Work From Home Policy
Overtime Policy
Data Security Policy
Performance Appraisal Policy
POSH (Prevention of Sexual Harassement) Policy
Diversity & Inclusion Policy
Employee Wellness Policy
Whistleblower Policy
Reimbursement Policy
Travel Policy
Employee Benefits Policy
Recruitment Policy
Transfer & Relocation Policy
Audit Score
Your HR Audit Score is 0
Section B: Guidelines Do you have Existing Guidelines?
Company Culture Guidelines
Company Dress Code Guidelines
Health & Safety Guidelines
Audit Score
Your HR Audit Score is 0

What is HR Audit Score?

It refers to various checkpoints that help to identify HR department’s specific practices areas are legal, effective and adequate as per the standards. The results which are obtained from this review can help to improve HR practices and prioritize these gaps if any. They help to maintain competitiveness in the HR practice areas.

Types of HR Audits

It can be structured to be either comprehensive in nature or specifically focused, within the constraints of budget, time and number of employees. There are various types of audits and each audit is designed according to the specific purpose.

Some of the common types are: 

  • Compliance- It helps to focus on how well the organization is complying with current federal, state, and local laws and regulations. It is necessary to comply with the current rules of government. 
  • Best practices- It helps the organizations to maintain or improve a competitive advantage by comparing its practices with those of companies identified as having exceptional HR practices or certain benchmarks.
  • Strategic- It helps to focus on strengths and weaknesses of systems and processes to determine whether they align with the HR department’s and the organization’s strategic plan or not.
  • Function-specific- Focuses on a certain area in the HR function (e.g., payroll, performance management, records retention).

Importance of HR Audits

It is recommended to conduct HR audits at regular intervals to keep the organization out of legal issues, such as unethical acts or wrongful termination lawsuits. Yet they are important to measure HR success and failures.

Several points that highlight the importance are:

1. Best HR Practices

HR best practices suggest that regular HR audits should be done to assist the improvement in the services provided to employees. It is better for small businesses and startups to adopt HR audits in order to ensure that the organization is on the right track and as they consider their employees in growth. Benefits administration of employees, payroll management, and conflict resolution are among many internal customer services that HR must do regularly.

2. Compliances

There are various compliances on which employers are required to adhere such as Labor Act, Fair labor standards, health and safety of employees, occupational safety etc. It is also necessary to adhere to various compliances. With the help of regular audits small-businesses can avoid the risk of liability of unfair employment practices. Audits also help to measure the effectiveness of workforce safety in an organization.

3. Performance

An HR Audit includes reviewing personnel files in an organization. It helps to reveal whether supervisors or managers are providing regular feedback to employees regarding their performance. This provides you an opportunity to see the quality of feedback managers provide to their employees. It also helps to take necessary improvement steps in any aspect. 

4. Competitiveness

A complete audit of HR compensation and benefits define whether your salaries and wages are competitive in the market or not. Job seekers always look for those employers who provide competitive benefits such as health insurance and other benefits related to work-life balance. Therefore, an HR audit of your business show how competitive is compensation benefits are in the market.

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