HR audit is an overall quality control check on human resource activities in a division or company and how those activities support the organization’s strategy. A human resource audit evaluates the personnel activities used in an organization. The audit may include one division or entire company.

1. HR Audit
Green Wind Solutions

2. HR Audit
HR audit is an overall quality control check on human
resource activities in a division or company and how
those activities support the organization’s strategy. A
human resource audit evaluates the personnel
activities used in an organization. The audit may
include one division or entire company.

3. Purpose
 The purpose of a Human Resources audit is to assess
the effectiveness of the Human Resources function
to ensure regulatory compliance
 To look for potentially serious problems (Time
bombs)
 To find areas needing improvement
 To document processes for use in merger,
reorganization or inspection
 To address compliance issues

4. Benefits
 Identifies the contribution of the personnel
departments to the organization
 Improves professional image of the personnel
department
 Encourages greater responsibility and
professionalism among members of the personnel
department
 Clarifies the personnel department’s duties and
responsibilities
 Finds critical personnel problems
 Create an HR business plan
 Streamline HR work processes
 Monitor compliance with established regulations
and procedures
 Develop user-friendly HR systems

5. Feed Back
1. The function of operating managers.
2. The human resource specialists.
3. How well managers are meeting their human
resource duties.

6. Scope
 Audit of Corporate Strategy
Corporate Strategy concerns how the
organization is going to gain competitive
advantage.
 Audit of the Human Resource Function
Audit touches on Human Resource Information
System, Staffing and Development
, and Organization Control and Evaluation.
 Audit of Managerial Compliance
Reviews how well managers comply with
human resource policies and
procedures.
 Audit of Employee Satisfaction
To learn how well employee needs are met.

7. Corporate Strategy
 Human resource professionals do not set
corporate strategy, but they strongly
determine its success.
 By assessing the firm’s internal strengths and
weaknesses and its external opportunities and
threats, senior management devises ways of
gaining an advantage, such as :
 stresses superior marketing channels,
 low-cost production, etc.
 Understanding the strategy has strong
implications for human resource planning,
staffing, compensation, employee relations,
and other human resource activities

8. Human Resource Function
Human Resource Information System
- Human Resource Plans : Supply and demand
estimates; skill inventories; replacement
charts and summaries
- Job Analysis Information : Job standards, Job
descriptions, Job specifications
- Compensation Management : Wage, salary,
and incentive levels; Fringe benefit
package; Employer-provided services

9. Staffing & Development
 Recruiting : sources of recruits, availability of
recruits, employment applications
 Selection : selection ratios, selection
procedures, equal opportunity.
 Training and development : orientation
program, training objectives and procedures,
learning rates
 Career development : internal placement,
career planning program, human resource
development efforts

10. Organization Control & Evaluation
 Performance appraisals : standards and
measures of performance, performance
appraisal techniques, evaluation interview.
 Labor-Management Relations : Legal
compliance, management rights, dispute
resolution problems.
 Human Resource Controls : employee
communications, discipline procedures,
change and development procedures,

11. Methodology
 Interview key staff
 Review relevant documentation
 Help you complete a comprehensive
questionnaire
 Compile data a prepare and customized written
report
 Make specific recommendations to improve the
efficiency and performance of your HR function

12. Regulatory Compliance Audit
 Personnel files and record keeping
(contain only job related information)
 Pay equality
 Job descriptions (ADA compliance)
 Health and safety
 Equal opportunities and positive action
 Forms (applications, internal forms, etc.)
 Legal reporting
 Policies and procedures

13. Task of Auditors
 Identify who is responsible for each activity.
 Determine the objectives sought by each
activity.
 Review the policies and procedures used to
achieve these activities.
 Prepare a report commending proper
objectives, policies, and procedures.
 Develop an action plan to correct errors in
each activity.
 Follow up the action plan to see if it solved
the problems found through the audit.

14. Audit of Employee Satisfaction
 Employee satisfaction refers to an employee’s
general attitude toward his or her job.
 When employee needs are unmet, turnover,
absenteeism, and union activity are more
likely. To learn how well employee needs are
met, the audit team gathers data from
workers.
 The team collects information about wages,
benefits, supervisory practices, career
planning assistance, and other dimensions of
job

15. Report for the HR Specialist
 The specialists who handle employment
training, compensation, and other activities
also need feedback. Such feedbacks are :
1. Unqualified workers that need for training
2. Qualified workers that need for
development
3. What others company are doing
4. Attitude operating managers toward
personnel policies
5. Workers pay dissatisfaction