Hr audit

HR AUDIT

1. HR Audit

2. An analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR functions. It reviews company’s HR functions (recruiting, testing, training etc) usually by using a checklist. It also ensures that the firm is adhering to regulations , laws and company policies.

3. Audit Section

4. Areas audited - Roles and Head count (JD, Type of employee- full time/part time). Compensation (policies, incentives ) Employee Communication (newsletter , recognition programs). Employee relation (performance mgmt, union agreement, disciplinary procedures)

5. Documentation and record keeping T&D (new employee orientation, career planning, career development) Exit management policies and practices. Payroll management Compliance with government (employment related)

6. Audit of HR Functions HR Information System- HRP Job Analysis Compensation Management Staffing & Development Recruitment Selection T & D Career Development Org Control & Evaluation Performance appraisal Labour- Mgmt relations HR controls Employee Satisfaction Managerial Compliance

7. Types of HR Audits Compliance: Focuses on how well the company is complying with current federal, state and local laws and regulations. Best Practices: Helps the organization maintain or improve a competitive advantage by comparing its practices with those of companies identified as having exceptional HR practices.

8. Strategic: Focuses on strengths and weaknesses of systems and processes to determine whether they align with the HR department’s and/or the company’s strategic plan. Function-Specific: Focuses on a specific area in the HR function (e.g., payroll, performance management, records retention, etc.)

9. Methods of HR Auditing Individual interview method (top level mgmt and senior managers are interviewed individually) Group interview method (with the employees and executives of the org. to find out effectiveness of existing system) Workshop method (large scale interactive process)

10. Observation method (auditor visits the place and uses checklist of questions) Questionnaire method (feedback about various dimensions of HRD from individual and group) Analysis of secondary data. (determines the strengths and weakness of the firm eg : training attended, minutes of meeting)

11. Relevant Questions that are asked in Individual And Group Interviews : What do you see as the future growth opportunities and business directions of the company? What skills and competencies does the company have which you are proud of? What skills and competencies do you need to run your business, or to perform your role, more effectively at present? What are the strengths of your HRD function? What are the areas where your HRD function can do better? What is good about your HRD subsystems, such as: performance appraisal , career planning, job rotation, training, quality circles, induction training, recruitment policies, performance counselling, worker development programmes, and HRD departments? What is weak about them? What can be improved? What changes do you suggest to strengthen HRD in your company? What do you think are the ways in which line managers can perform more developmental roles?

12. Auditing Process Initiation Assessment Concluding and Reporting

13. 1. Initiation Determine the purpose and objectives of the audit. Determine the scope of the audit. Determine the organizational components to be audited . Determine the auditing tool to be used. Determine costs and resources needed to perform the audit Determine audit team governance.

14. 2. Assessment Determine employment issues Formulating auditing methodology and tools Developing a checklist

15. 3. Concluding and Reporting Report preparation (The Process comes to end with preparation of Report. Report maybe Clean or Qualified . It is Qualified if HR Performance contains Gaps for which remedies suggested. Report is Clean where Performance is fairly Satisfactory) Report presentation ( Audit report often contain several sections. One part is for line managers, another is for manager of specific human resource function, and the final part is for the HR manager) . Quantify results Identify risks Identify and prioritize solutions to problems Develop a HR improvement plan

16. Report for Line Managers How line managers handle their duties such as: Interviewing applicants Training employees Evaluating performance Motivating workers Satisfying employee needs The report also identifies people problems. Violations of policies and employee relations law are highlighted

17. Report for HR specialist The specialists who handle employment training, compensation, and other activities also need feedback. Such feedbacks are : Unqualified workers that need training. Qualified workers that need development. What other companies are doing. Attitude of operating managers toward personnel policies. Workers pay related dissatisfaction.

18. Report for HR manager It is contains all the information given to both operating managers and staff specialists. In addition, HR Mangers gets feedback about : Attitude of operating managers and employees about services given by HRD A review of HRD plans Human resource problems and their implication Recommendations for needed changes and priorities for their implementation

19. Generic Audit Process Design and develop hr policies, procedures and practices for your organization. Assess current hr policies, procedures and practices against set criteria. Analyse the results from evidence. Take action: to close gaps, make recommendations/ set improvement goals.