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What is an HR Audit?

  • IncludeHR Your People Partner
  • Jul 23, 2024
  • 2 min read

Updated: Jul 25, 2024

A HR Audit is a comprehensive method of evaluating you company’s HR policies, procedures, documentation, systems, and practices. The purpose of a HR Audit is to identify strengths, gaps and areas for improvement in the HR function and to ensure compliance with UK laws and regulations. It also helps align HR practices with your company’s strategic goals.

Potential risks of not being legally compliant can include:


o   Attracting the right talents

o   Poor retention of talents

o   Employee exit settlement costs

o   Unfair and constructive dismissal

o   Costly recruitment and legal resolution fees.


We offer the following types of HR Audit to select from:

A Compliance Audit:

  • Legal and Regulatory Compliance: ensures your company complies with all relevant employment laws and regulations e.g. data protection, health and safety.

  • Documentation Review: Examines the accuracy and completeness of employee records, contracts, and other HR documentation.


A Best Practices Audit:

  • Benchmarking: Compares the company’s HR practices with industry best practices to identify areas for improvement.

  • Policy and Procedure Review: Evaluates HR policies and procedures to ensure they are current, effective, and aligned with best practices.


Strategic Audit:

  • Alignment with Business Goals: Assesses how well HR strategies and activities support your overall company goals and objectives.

  • Talent Management: Evaluates recruitment, retention, and development strategies to ensure they meet the company's strategic needs.


Functional Audit:

  • HR Function Effectiveness: Reviews the efficiency and effectiveness of HR processes and systems, such as payroll, benefits administration, performance management, and employee relations.

  • Technology Utilisation: Assesses the use of HR technology and systems, such as HRIS (Human Resources Information Systems), for managing HR functions.


Employee Relations Audit:

  • Employee Satisfaction and Engagement: Measures employee satisfaction and engagement levels through surveys, one-on-one conversations, and focus groups.

  • Grievance and Disciplinary Procedures: Reviews the effectiveness and fairness of the company’s grievance and disciplinary procedures.



 
 
 

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