HR Audits

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Policy Policing for HR

What is HR Audits

Every organisation and department needs a system and some checks to work effectively. Human resource is no different. Regular HR audits are done to ensure that the policies, documentation and procedures are accurate or not. It evaluates policies related to budgeting, training, hiring, employee relations and retention.

  • It is a time to time check of all the aspects of human resources function
  • It verifies all the data related to managing human resources, including financial transaction, leave records, payroll management, etc.
  • It evaluates compliance regulations and identifies areas for improvement
  • The legal policies related to employee compensation, recruitment and selection, performance measurement and benefit systems are checked
  • If there are any loopholes, the auditors offering Human Resource audit services in India, will ask for rectification
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Who can do Human Resource Auditing

Since HR audit is so critical for proper working of any organisation, it must be conducted by an external HR policy expert who will provide an unbiased assessment.

Benefits of Human Resource Audit

The role of an auditor providing HR auditing service is not to prescribe solutions, but to only find out the faults. The HR audit process includes defining its scope, choosing the right approach, selecting the data collection method and analysing data to prepare the audit report. There are several benefits of conducting an HR audit:

  • Ensures compliance with various legal policies
  • It finds out the gap in information existing between different aspects of HR management systems
  • Brings about uniformity in policies for office staff, field workers and contractual employees
  • It increases the efficiency of people responsible for different HR management functions as their performance is evaluated
  • Finds out strengths and weakness of prevalent HR policies

Approaches to Human Resources Audit

The hrbulb follows varied approaches to HR audit depending upon the size, workforce strength and growth stage of the organisation. The decision about the approach is at the discretion of the auditor who undertakes a careful

Comparative Approach

Mostly suitable for startups, it selects an established company as the benchmark for comparison

Statistical Approach

Here, the information from within the organisation is used to create statistical standards and evaluate the functions

Compliance Approach

It simply reviews the past performance of the company to check if the legal and corporate regulations have been followed precisely

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