HR AUDIT
Presented By- Ananya Aggarwal
WHAT IS AUDIT?
inspect,examine,survey,investigate,
evaluate.
To conduct an official inspection of
something in a company or to keep a
check on some system
HUMAN RESOURCE AUDITING
An HR audit is an objective examination of
your business's HR policies, practices, and
procedures. The goal is to look for
trouble spots and/or identify ways you
can improve. You can hire an outside
company to perform the audit or you
can instruct your HR department to
perform an internal audit.
Verifying compliance with applicable laws
Risk management & liability reduction
Best-practice review
Objectives
Assessing personnel system
Advantages
Identify reasons for low
productivity
Gain a competitive
advantage
Staying up to date with
laws and regulations
Improve talent
acquisition strategies
Low employee turnover Improve safety in the
workplace
Process
The HR audit process is a systematic review of all aspects of the HR function1.
The process varies widely across organizations, but typically includes the
following steps
The first step in an HR audit
process is to define the
scope and objectives of the
audit. This includes
determining which areas of
the HR function will be
audited and what are the
expected outcomes
The next step is to collect
data on the HR function.
This includes reviewing HR
policies and procedures,
employee files, and HR
metrics such as turnover,
employee satisfaction and
absenteesim.
Once the data has been
collected, it needs to be
analyzed to identify areas of
strength and weakness in
the HR function. This
analysis should consider
legal compliance, best
practices, and alignment
with organizational goals.
Based on the data analysis,
the next step is to identify
areas for improvement in
the HR function. This can
include developing new
policies and procedures,
updating existing ones, and
implementing new HR
programs and initiatives.
Define the Scope and
Objective
Collect Data Analyze the Data Identify Areas for
Improvement
Develop an Action Plan Implement the Action
Plan
Monitor and Evaluate
Process continued
After identifying areas for
improvement, an action plan
should be developed to
address them. The action
plan should include specific
recommendations, timelines,
and responsibilities for
implementation.
Once the action plan has
been developed, it needs to
be implemented. This may
involve training HR staff,
communicating changes to
employees, and updating HR
policies and procedures.
The final step in an HR audit
process is to monitor and
evaluate the effectiveness of
the action plan. This includes
tracking HR metrics,
soliciting feedback from
employees, and making
adjustments as necessary to
ensure that the HR function
is meeting organizational
goals and legal
requirements.
Method Description
Interview
Method
interviewing top management,
senior management, line
managers, and employees by the
HRD auditor.
Questionnaire
Method
using a structured questionnaire
to collect data from various levels
of the organization
Observation
Method
observing the HR activities and
processes in action
Desk Research
Method
reviewing the existing
documents, records, reports, and
policies related to HR.
Workshop
Method
conducting workshops with the
HR staff and other stakeholders
to discuss the HR issues and
solutions.
Methods
The following methods are adopted:
Approaches
1. Statistical approach
2.Compliance approach
3.Comparative approach
4.Outside authority approach
5.Management by objectives (MBO
approach).
Thank you!
Any questions?

Human resource audit Presentation (3).pptx

  • 1.
    HR AUDIT Presented By-Ananya Aggarwal
  • 2.
    WHAT IS AUDIT? inspect,examine,survey,investigate, evaluate. Toconduct an official inspection of something in a company or to keep a check on some system
  • 3.
    HUMAN RESOURCE AUDITING AnHR audit is an objective examination of your business's HR policies, practices, and procedures. The goal is to look for trouble spots and/or identify ways you can improve. You can hire an outside company to perform the audit or you can instruct your HR department to perform an internal audit.
  • 4.
    Verifying compliance withapplicable laws Risk management & liability reduction Best-practice review Objectives Assessing personnel system
  • 5.
    Advantages Identify reasons forlow productivity Gain a competitive advantage Staying up to date with laws and regulations
  • 6.
    Improve talent acquisition strategies Lowemployee turnover Improve safety in the workplace
  • 7.
    Process The HR auditprocess is a systematic review of all aspects of the HR function1. The process varies widely across organizations, but typically includes the following steps The first step in an HR audit process is to define the scope and objectives of the audit. This includes determining which areas of the HR function will be audited and what are the expected outcomes The next step is to collect data on the HR function. This includes reviewing HR policies and procedures, employee files, and HR metrics such as turnover, employee satisfaction and absenteesim. Once the data has been collected, it needs to be analyzed to identify areas of strength and weakness in the HR function. This analysis should consider legal compliance, best practices, and alignment with organizational goals. Based on the data analysis, the next step is to identify areas for improvement in the HR function. This can include developing new policies and procedures, updating existing ones, and implementing new HR programs and initiatives. Define the Scope and Objective Collect Data Analyze the Data Identify Areas for Improvement
  • 8.
    Develop an ActionPlan Implement the Action Plan Monitor and Evaluate Process continued After identifying areas for improvement, an action plan should be developed to address them. The action plan should include specific recommendations, timelines, and responsibilities for implementation. Once the action plan has been developed, it needs to be implemented. This may involve training HR staff, communicating changes to employees, and updating HR policies and procedures. The final step in an HR audit process is to monitor and evaluate the effectiveness of the action plan. This includes tracking HR metrics, soliciting feedback from employees, and making adjustments as necessary to ensure that the HR function is meeting organizational goals and legal requirements.
  • 9.
    Method Description Interview Method interviewing topmanagement, senior management, line managers, and employees by the HRD auditor. Questionnaire Method using a structured questionnaire to collect data from various levels of the organization Observation Method observing the HR activities and processes in action Desk Research Method reviewing the existing documents, records, reports, and policies related to HR. Workshop Method conducting workshops with the HR staff and other stakeholders to discuss the HR issues and solutions. Methods The following methods are adopted:
  • 10.
    Approaches 1. Statistical approach 2.Complianceapproach 3.Comparative approach 4.Outside authority approach 5.Management by objectives (MBO approach).
  • 11.