This document outlines a 2-day training program on HR auditing. It introduces the topic and covers the fundamentals, scope, and process of HR auditing. The training will define HR auditing and discuss its purposes, benefits, and principles. It will also explore the typical areas and measures used in HR audits. A 3-phase process is described: initiation, assessment, and concluding/reporting. Learning activities are interspersed to apply the concepts. The goal is to help organizations understand how to effectively audit their HR programs and practices.

1. HR AUDIT ROAD-MAP
CROWNE PLAZA HOTEL, ROSEBANK
5-6 SEPTEMBER 2013
CHARLES COTTER

2. 2-DAY TRAINING PROGRAMME
OVERVIEW
• INTRODUCTION
• THE FUNDAMENTALS OF HRM AUDITING
• THE SCOPE OF HRM AUDITING
• THE PROCESS OF HRM AUDITING

3. INTRODUCTION
• “How does a firm know if its human resource practices have
an impact on business results?
• “..most professional service firms and organizations complete
an extensive audit of their financial statements on an annual
basis, but the programmes involving “people”, such as
recruiting, training or pay-for-performance are seldom given
the same scrutiny.”
• “..the starting point for enterprises wishing to manage their
human capital successfully and seeking a labour competitive
advantage is activities of the HR department.”
• COMPLETE THE INTRODUCTORY LEARNING ACTIVITY

4. THE FUNDAMENTALS OF HRM
AUDITING
• DEFINING HRM AUDITING
• THE DRIVING FORCES OF HRM AUDITING
• THE PURPOSE AND OBJECTIVES OF HRM AUDITING
• THE BENEFITS OF HRM AUDITING
• POTENTIAL DRAWBACKS OF HRM AUDITS
• THE CRITICAL SUCCESS FACTORS OF HRM AUDITING
• THE PRINCIPLES OF EFFECTIVE HRM AUDITING

5. PURPOSES OF HRM AUDITING
•VALUE
•COMPLIANCE
•RISK

6. PURPOSES OF HRM AUDITING
•VALUE – STRATEGIC (ROI); OPERATIONAL
(EFFECTIVENESS); ADMINISTRATIVE
(EFFICIENCY) AND RESOURCE
OPTIMIZATION (ECONOMICAL)
•COMPLIANCE – LEGISLATIVE AND
ORGANIZATIONAL POLICY
•RISK – PEOPLE AND RELATED E.G. OHS

7. BENEFITS OF HRM AUDITING

8. THEPRINCIPLESOF EFFECTIVEHRM
AUDITING
• NEED FOR INDEPENDENCE;
• AUDIT ACTIVITIES SHOULD BE BUDGETED FOR PROPERLY;
• ACKNOWLEDGEMENT THAT THERE ARE MANY TYPES OF AUDITS;
• EACH TYPE OF AN HR AUDIT HAS ITS OWN PURPOSE AND OBJECTIVES;
• ESTABLISH TIMEFRAMES FOR EVERY PHASE/STEP OF THE AUDIT;
• TRAINING OF AUDITORS IS A MUST;
• SET STANDARDS FOR THE HR AUDITS;
• AGREE ON REPORTING TEMPLATE;
• AUDITORS SHOULD SIGN A CONFIDENTIALITY AGREEMENT; AND
• AUDITORS SHOULD AGREE BEFOREHAND ON COMMUNICATION STRATEGY.

9. LEARNING ACTIVITY 1
• COMPLETE THIS ACTIVITY (PAGES 21-22) IN SYNDICATE
GROUPS
COST-BENEFIT ANALYSIS OF HRM AUDITING
GAP ANALYSIS OF CURRENT HRM AUDITING PRACTICES
• NOMINATE A SPOKESPERSON TO PROVIDE A
SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

10. THE SCOPE OF HRM AUDITING
• THE HR ELEMENTS/FOCAL POINTS
WITHIN THE SCOPE OF HRM AUDITS
• TYPES OF AUDITS
• COMMON AREAS FOR HRM AUDITING

11. THE SCOPE OF HRM AUDITING

12. COMMON AREAS OF HRM AUDITING
• HRM AND RELATED
• HRD AND RELATED
• HR INFORMATION SYSTEMS
• THE SERVICE ROLE OF HR
• HR LEGISLATIVE COMPLIANCE
• THE STRATEGIC ROLE OF HR

13. HRM AUDIT MEASURES
• HR PLANNING
• RESOURCING – RECRUITMENT EFFICIENCY AND EFFECTIVENESS
• COMPENSATION AND BENEFITS MEASURES
• ORIENTATION/ON-BOARDING
• EMPLOYEE COUNSELING AND DISCIPLINARY COSTS
• LOST TIME COSTS
• EMPLOYEE TURNOVER RATES
• TRAINING AND DEVELOPMENT COSTS E.G. ROI
• ORGANIZATIONAL DEVELOPMENT AND CHANGE MANAGEMENT

14. SABPP NATIONAL HR STANDARDS
REFER TO ANNEXURE:
• Strategic HR Management
• Talent Management
• HR Risk Management
• Workforce Planning
• Learning & Development
• Performance Management
• Reward
• Employee Wellness
• Employment Relations Management
• Organization Development
• HR Service Delivery
• HR Technology
• HR Measurement

15. LEARNING ACTIVITY 2
• COMPLETE THIS ACTIVITY (PAGE 43) IN SYNDICATE
GROUPS
IDENTIFY THE SCOPE (FOCAL AREAS) OF A HRM AUDIT
DEVELOP HRM AUDIT MEASURES FOR EACH OF THESE
FOCAL AREAS
• NOMINATE A SPOKESPERSON TO PROVIDE A
SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

16. HRM AUDITING PROCESS
• PHASE 1: FOUNDATIONAL/INITIATION
• PHASE 2: ASSESSMENT
• PHASE 3: CONCLUDING AND REPORTING

17. OVERVIEW OF THE GENERIC HRM
AUDITING PROCESS
• DESIGN AND DEVELOP HR POLICIES, PROCEDURES
AND PRACTICES FOR YOUR ORGANIZATION;
• ASSESS CURRENT HR POLICIES, PROCEDURES AND
PRACTICES AGAINST SET CRITERIA;
• ANALYSE THE RESULTS FROM EVIDENCE; AND
• TAKE ACTION: TO CLOSE
GAPS, MAKE RECOMMENDATIONS/
SET IMPROVEMENT GOALS.

18. HRM AUDITING PROCESS
ILLUSTRATED

19. HRM AUDITING PROCESS
ILLUSTRATED

20. PHASE 1:
FOUNDATIONAL/INITIATION
• AUDIT SET-UP ACTIONS
• AUDIT PLANNING ACTIONS
Determine the purpose and objectives of the audit
Determine the scope of the audit
Determine the organizational components to be audited
Determine the auditing tool to be used
Determine costs and resources needed to perform the audit
Determine audit team governance

21. LEARNING ACTIVITY 3
• COMPLETE THIS ACTIVITY (PAGES 56-57) IN SYNDICATE
GROUPS
APPLY PHASE 1: FOUNDATIONAL/INITIATION OF THE 3-
STEP HRM AUDIT CYCLE
• NOMINATE A SPOKESPERSON TO PROVIDE A
SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

22. PHASE 2: ASSESSMENT
• GENERAL COMMENTS
• IDENTIFY KEY ORGANIZATIONAL METRICS - DETERMINE
EMPLOYMENT ISSUES ACCOUNTABILITY
• DEVELOPING A CHECKLIST
REFER TO THE ATTACHED ANNEXURE: HUMAN RESOURCES
BEST PRACTICE AUDIT AND NEEDS ASSESSMENT TOOL
• FORMULATING AUDITING METHODOLOGY AND TOOLS

23. LEARNING ACTIVITY 4
• COMPLETE THIS ACTIVITY (PAGES 60-61) IN SYNDICATE
GROUPS
APPLY PHASE 2: ASSESSMENT OF THE 3-STEP HRM
AUDIT CYCLE
• NOMINATE A SPOKESPERSON TO PROVIDE A
SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

24. PHASE 3: CONCLUDING AND
REPORTING
• REPORT PREPARATION
• REPORT PRESENTATION
QUANTIFY YOUR RESULTS - START WITH OUTCOMES
INCLUDE AN EXECUTIVE SUMMARY
IDENTIFY RISKS
IDENTIFY AND PRIORITIZE SOLUTIONS TO PROBLEMS IDENTIFY.
WHERE POSSIBLE, FRAME YOUR SOLUTIONS FROM A BOTTOM LINE
PERSPECTIVE, I.E., CALCULATE THE BENEFITS AND COSTS OF
PROPOSED SOLUTIONS
EVALUATE AND DISCUSS THE ORGANIZATIONAL, FINANCIAL AND
EMPLOYEE RELATIONS IMPACT OF ACTION OR INACTION
• DEVELOP A HR IMPROVEMENT PLAN

25. LEARNING ACTIVITY 5
• COMPLETE THIS ACTIVITY (PAGE 63) IN SYNDICATE
GROUPS
APPLY PHASE 3: CONCLUDING AND REPORTING OF THE
3-STEP HRM AUDIT CYCLE
• NOMINATE A SPOKESPERSON TO PROVIDE A
SUMMATION OF YOUR SYNDICATE GROUP DISCUSSION

26. CONCLUSION
• SUMMARY OF KEY LEARNING POINTS
• QUESTIONS
• FINALIZATION OF TRAINING ADMINISTRATION
• THANK YOU
• GOOD LUCK WITH YOUR ORGANIZATIONAL HRM AUDIT

27. CONTACTDETAILS
• CHARLES COTTER
• 084 562 9446
• charlescot@polka.co.za
• LINKED IN
• TWITTER: Charles_Cotter