Human Resource (HR) Audit is a comprehensive examination of organizationâ€™s current HR policies, systems, and procedures to evaluate compliance with employment regulations and identify areas for improvement. A well-executed HR Audit will reveal gap areas that can potentially lead to costly legal disputes and governmental fines. It is advisable to conduct an HR audit once every year.
- Ensuring the effective utilization of the organizationâ€™s human resources
- Reviewing compliance in relation to administration of the organization
- Instilling a sense of confidence in management and the human resources function
- Maintaining or enhancing the organization and the departmentâ€™s reputation in the community
- Performing â€œdue diligenceâ€ review for shareholders or potential investors/owners
- Establishing a baseline for future improvement for the function