The HR audit process is conducted in different phases. Each phase is designed to build upon the preceding phase so that the organization will have a very strong overview of the health of the HR function, at the conclusion of the audit. These phases include:
Pre-Audit Information: This phase involves the acquiring and review of relevant HR manuals, handbooks, forms, reports and other information. A pre-audit information request is forwarded to the client who compiles the necessary information for review by auditors.
Pre-Audit Self-Assessment: In order to maximize the time spent during subsequent portions of the audit, a pre-audit self-assessment form, if sent to the client can be of use. The self-administered yes/no questionnaire asks a number of questions about current HR policies and practices.
The completion of this self-administered questionnaire allows auditors to identify key areas for focus during the HR audit.
On-site Review: This phase involves an on-site visit at the client's facility interviewing staff regarding HR policies and practices. A very in-depth HR audit checklist is completed.
Records Review: During the on-site visit, a separate review is conducted of HR records and postings. Employee personnel files are randomly examined as well as compensation, employee claims, disciplinary actions; grievances and other relevant HR related information are checked.
Audit Report: The information gathered is used to develop an HR audit report. The audit report categorizes action needs into three separate areas. The areas that are urgent and important (UI), not urgent needs but important (NUI), not urgent but not important needs (NNI)), and important opportunities needs (IO). As a result of this scheme of classification, managements can prioritize their steps.
Definition:[/b]
HR Audit means the systematic verification of job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution. [/i][/i]
Generally, no one can measure the attitude of human being and also their problems are not confined to the HR department alone.
It covers:[/b][/b]
Audit of all the HR function
Audit of managerial compliance of personnel policies, procedures and legal provisions
Audit of corporate strategy regarding HR planning, staffing, IRs, remuneration and other HR activities
Audit of the HR climate on employee motivation, morale and job satisfaction
Benefits:[/b][/b]
It provides the various benefits to the organization.
These are:
It helps to find out the proper contribution of the HR department towards the organization.
Development of the professional image of the HR department of the organization
Reduce the HR cost
Motivation of the HR personnel
Find out the problems and solve them smoothly.
Provides timely legal requirement
Sound Performance Appraisal Systems
Systematic job analysis
Smooth adoption of the changing mindset.
The auditors always prepare and submit an audit report to authority of the organization, which may be clean or qualified. The clean report indicates the appreciative of the department's function, but the latter one represents the gaps in performance and therefore contains remarks and remedial measures. HR Audit is very much helpful to face the challenges and to increase the potentiality of the HR personnel in the organization.
