HR Glossary

HR Audit

What is an HR Audit?

An HR audit is an assessment of an organization’s human resources policies and practices. It can help identify areas where improvements can be made, and can help ensure that the organization is in compliance with all applicable laws and regulations. An HR audit typically includes a review of the following areas: recruiting and hiring, compensation and benefits, training and development, performance management, and employee relations.

What are the benefits of an HR Audit?

An HR Audit can provide a number of benefits for a company, including:

  1. Identification of potential compliance issues with federal, state, and local labor laws.
  2. Assessment of employee training and development needs.
  3. Evaluation of employee recruitment and selection processes.
  4. Identification of policies and procedures that need improvement.
  5. Improvement of communication and coordination between HR and other departments.
  6. Assistance in developing an HR strategy that aligns with the company’s overall business strategy.
  7. Identification of potential areas of risk related to HR management.

Who uses HR Audits?

There are many different people and groups within an organization that can use HR audits. The most common users of HR audits are line managers and HR professionals. Line managers use HR audits to assess the performance of their employees and to identify areas where they may need to improve. HR professionals use HR audits to ensure that the organization’s HR policies and procedures are compliant with applicable laws and regulations. Other people who can use HR audits include executives, compliance officers, and risk managers.

How do you build an HR Audit?

There is no one-size-fits-all answer to this question, as the approach to building an HR audit will vary depending on the size and complexity of the organization, as well as the specific HR functions and processes in place. However, some key steps in creating an HR audit include:

  1. Gathering information about the organization and its HR functions. This includes reviewing HR policies and procedures, as well as interviewing HR staff about how they carry out their work.
  2. Identifying areas of risk. This includes reviewing areas such as hiring and recruiting, training and development, performance management, and exit and turnover.
  3. Developing recommendations for addressing any risks identified. This may include specific steps that HR staff should take to reduce the risk of HR-related problems, or changes to policies or procedures that are needed.
  4. Implementing the recommendations. Once the HR audit has been completed, it is important to put the recommendations into action to help ensure that the organization is running as safely and efficiently as possible.

What do you include in an HR Audit?

When conducting an HR audit, you should review the policies and procedures related to HR, as well as the way they are being implemented. You should also review the HR staff, their roles and responsibilities, and the training and development they have received. Additionally, you should review the HR budget and the way it is allocated. Finally, you should review the HR systems and processes, and identify any areas that could be improved.


Stay one step ahead.

Be the first to hear about tips, tricks and data-driven best practices for HR professionals.