Audit :
HR Audit is the process of analyzing recruitment, onboarding, documentations, pay package, benefits, entitlements, JD/KPI and compliance according to the law, policy and procedure or the practices within the company or industry to check the health of the organization. The first step of corporate growth is understanding your pitfalls. You must know your weak points to advance further ahead. So, it is essential to conduct a performance review to learn about the weak links in an organization through a quality HR Audit process. In this regard, audits are an efficient way of doing so. They are an in-depth study of the business processes to understand its positives and negatives. It gives a fair idea of what needs to change and accommodates new thing to compete in new challenges.
One such important audit in a company, among many others, is the HR Audit.
* Purposes of HR Audit :
• Helping the Shareholder to understand how the business is operating
• Helping the HR Department understand how to improve itself
• Ensuring compliance of the company’s working with the governing laws
• Reviewing and the proper resource allocation for human resources
• Being an act of “due diligence” for potential investors and stakeholders of a company
• Instilling a sense of confidence in management and the human resources function
• Establishing a baseline for future improvement for the function
* Check point:
• Analyzing Mission Vision & Strategy
• Analyzing Business Unit & Manpower plan
• Analyzing HR Policy & SOPs
• Analyzing legal & compliance
• Analyzing employee turnover
• Analyzing Hiring and Onboarding process
• Analyzing Benefits & Compensation standard
• Analyzing Employee Satisfaction survey
• Analyzing Performance evaluation record & process
• Analyzing Termination process and exit interviews
• Analyzing Job descriptions & Job Role of key position
• Analyzing Training and development scopes
• Analyzing Personnel records & files review
* Assessment process:
• Knowing Expectation of Top Management
• Preparation meeting with Management
• Report for Financial trend of last 3-5 yrs
• Organogram according to Business, Dept and function
• Employee turnover report according to Business & Dept
• Random sampling for Satisfaction survey at least 15%
• 360 assessments of 20 nos of Key position Interviewing Senior, Junior, Peer
• Random sampling of Document verification 10%
Personal file, Payroll & benefits data
• Award punishment process assessment Award
punishment data review
• Pay structure assessment Pay structure analysis
according to job load & compare industry average
• Training records for last 3 years
• Assessment report submission with recommendation for development
* Sections of review include :
• Hiring and On-boarding
• Benefits
• Compensation
• Performance evaluation process
• Termination process and exit interviews
• Job descriptions
• Form review
• Personnel file review
* Importance of HR Audit:
• Ensuring the effective utilization of the organization’s human resources
• Reviewing compliance in relation to administration of the organization
• Instilling a sense of confidence in management and the human resource’s function
• Maintaining or enhancing the organization and the department’s reputation in the community
• Performing “due diligence” review for shareholders or potential investors/owners
• Establishing a baseline for future improvement for the function
Audit :
HR Audit is the process of analyzing recruitment, onboarding, documentations, pay package, benefits, entitlements, JD/KPI and compliance according to the law, policy and procedure or the practices within the company or industry to check the health of the organization. The first step of corporate growth is understanding your pitfalls. You must know your weak points to advance further ahead. So, it is essential to conduct a performance review to learn about the weak links in an organization through a quality HR Audit process. In this regard, audits are an efficient way of doing so. They are an in-depth study of the business processes to understand its positives and negatives. It gives a fair idea of what needs to change and accommodates new thing to compete in new challenges.
One such important audit in a company, among many others, is the HR Audit.
* Purposes of HR Audit :
• Helping the Shareholder to understand how the business is operating
• Helping the HR Department understand how to improve itself
• Ensuring compliance of the company’s working with the governing laws
• Reviewing and the proper resource allocation for human resources
• Being an act of “due diligence” for potential investors and stakeholders of a company
• Instilling a sense of confidence in management and the human resources function
• Establishing a baseline for future improvement for the function
* Check point:
• Analyzing Mission Vision & Strategy
• Analyzing Business Unit & Manpower plan
• Analyzing HR Policy & SOPs
• Analyzing legal & compliance
• Analyzing employee turnover
• Analyzing Hiring and Onboarding process
• Analyzing Benefits & Compensation standard
• Analyzing Employee Satisfaction survey
• Analyzing Performance evaluation record & process
• Analyzing Termination process and exit interviews
• Analyzing Job descriptions & Job Role of key position
• Analyzing Training and development scopes
• Analyzing Personnel records & files review
* Assessment process:
• Knowing Expectation of Top Management
• Preparation meeting with Management
• Report for Financial trend of last 3-5 yrs
• Organogram according to Business, Dept and function
• Employee turnover report according to Business & Dept
• Random sampling for Satisfaction survey at least 15%
• 360 assessments of 20 nos of Key position Interviewing Senior, Junior, Peer
• Random sampling of Document verification 10%
Personal file, Payroll & benefits data
• Award punishment process assessment Award
punishment data review
• Pay structure assessment Pay structure analysis
according to job load & compare industry average
• Training records for last 3 years
• Assessment report submission with recommendation for development
* Sections of review include :
• Hiring and On-boarding
• Benefits
• Compensation
• Performance evaluation process
• Termination process and exit interviews
• Job descriptions
• Form review
• Personnel file review
* Importance of HR Audit:
• Ensuring the effective utilization of the organization’s human resources
• Reviewing compliance in relation to administration of the organization
• Instilling a sense of confidence in management and the human resource’s function
• Maintaining or enhancing the organization and the department’s reputation in the community
• Performing “due diligence” review for shareholders or potential investors/owners
• Establishing a baseline for future improvement for the function