HR Audit - How can an organization benefit out of it?

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HR audit helps in assessing the contribution of the human resource processes to the organization and take improvement measures. It is like an regular health check-up which instills a sense of confidence in the management and the HR functions of an organization.
 
It ensures that one’s HR process is functioning effectively, compliant with local laws and is linked to organization’s strategic goals.

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HR Audit - How can an organization benefit out of it?

  1. 1. www.verde.co.in HR Audit How an organisation can get Benefits out of it? measure & improve your HR compliance and performance
  2. 2. Inspiring Excellence about the presentation HR audit helps in assessing the contribution of the human resource processes to the organization and take improvement measures. It is like an regular health check- up which instills a sense of confidence in the management and the HR functions of an organization. It ensures that one’s HR process is functioning effectively, compliant with local laws and is linked to organization’s strategic goals. www.verde.co.in
  3. 3. Inspiring Excellencewww.verde.co.in Now on the subject: HR Audit
  4. 4. Inspiring Excellence What is HR audit HR audit is an in-depth analysis of all people related initiatives to identify strength and areas of improvement An HR Audit can help to ensure legal compliance while measuring the effectiveness of HR programs and practices
  5. 5. Inspiring Excellence Objectives of HR audit • improve efficiency of HR processes and practices • determine corrective measures for HR practices that don't address employee and employer needs and assess compliance with international standards and global best practices • state and local regulations
  6. 6. Inspiring Excellence HR Audit Measurement & Improvement of Statutory Compliance Process Improvement based on audit findings Improvement in • Productivity • Employee Satisfaction • Stakeholders’ confidence • Brand image • Customer satisfaction Unleash your productivity with HR Audit
  7. 7. Inspiring Excellence components of HR audit Mandatory components  HR governance system  Legal compliance  People competence  Human resource cost Optional • Manpower planning & forecasting • Recruitment, selection, Induction • Performance management • Compensation benefits • Career development & succession planning • Reward recognition & employee benefits • Employee exit • Industrial relations and ethical practices • Human resource information system • Occupational health & safety of employee • Corporate social responsibility
  8. 8. Inspiring Excellence Four stage HR audit process
  9. 9. Inspiring Excellence Audit Plan  Offsite information collection  Development of custom built audit protocol based on People Capability Maturity Model (P-CMM)  Selection of audit team  Preparation of audit plan  Communication 1 Onsite Audit  Opening Meeting  Discussion with top management  Self assessment (cross functional perspective (sampling)  Interview of different process owners  Process / task observation  Document Audit  Closing Meeting Audit Report  Findings are rated through assessment protocol  Finalization of HR rating  Finalization of Risk rating (prioritization)  Preparation of Recommendations in the areas of Strategy, People, Process, Documentation & Infrastructure  Report with strengths and areas of improvement  Issue of Certificate 3 Audit Follow up  Submission of improvement plan by the organisation  Closure of improvement plans and programs  Re-audit after one year  Re issue of certificate with new rating 42
  10. 10. Inspiring Excellence Challenges Compliance Challenges Performance Challenges
  11. 11. Inspiring Excellence • Help to comply legal requirement • Identify the focus areas for management action • To improve contribution of the HR function to the achievement of our business objectives. • HR objectives can be aligned with strategic objective • Reduce the HR cost • Contributee in people capacity development • Performance Appraisal Systems Benefits
  12. 12. Inspiring Excellence Role of HR manager in HR audit • To initiate the process of HR audit • To make the corrective action plans based on the identified issues • Periodic checking of the health of the system • Give input to the top management for business decision making Role of compliance manager in HR audit • To ensure statutory compliance • To ensure compliance with Companies Act, 2013 • Input for CSR planning • Cost benefit analysis in HR
  13. 13. Inspiring Excellencewww.verde.co.in This is a knowledge initiative About the author: Madhabi is a consultant of Verde Ventures, which provides consulting and advisory services in the field of business management. She worked in manufacturing and service industries in different people functions as an auditor, consultant and trainer. She has expertise in process development, strategic management in the areas of people excellence, sustainability and business excellence. Madhabi is a trainer, consultant and assessor and worked with more than 100 organizations across India. Madhabi is masters in human resource management and presently pursuing doctorate in management. She is a certified Neuro Linguistic programme practioner and trained social impact assessor. She has conducted 100+ assessments in different industries in the areas of HR, legal, social, CSR and sustainability. Her knowledge of industrial relations and labour laws helps her to contribute in the HR audits effectively. Madhabi can be reached at madhabi.guha@verde.co.in
  14. 14. Inspiring Excellence What Verde does? Verde is an international advisory firm involved in the field of Responsible Business, Business Excellence and Risk Management. 1 Assessment Identifying the gaps in a system against standard(s) and requirement. to meet compliance and facilitate improvement. 2 Consulting Supporting & handholding organisations to solve their problems and to meet the gaps identified during the assessment or any other audit. 3 Training Empowering people to perform their duties effectively and efficiently. 4 Assurance & Certification Ensuring that a process, product, or service meets relevant techni cal standards and fulfils relevant requirements. www.verde.co.in Verde services in People Excellence • HR Audit • HRD Climate Survey • Workplace Stress Management • Human Resource Process Management • Performance Management • Strategic Competency Management Safety, Health & Environment People ExcellenceFood Safety Social Compliance Quality & Business Excellence Information Security

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