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