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HR Audit [Thread 13902] - CiteHR

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rekhaaaa
3

Dear All,

Pls find an article on how to conduct an HR Audit.

Rekha

Auditing the Human Resources Function



Written by Auxillium West



The purpose of a Human Resources audit is to assess the effectiveness of the Human Resources function and to ensure regulatory compliance.



The audit can be conducted by anyone with sufficient Human Resources experience. Having experience working in more than one company is a plus, as it provides the auditor with a broader perspective.



There's an advantage to having the audit conducted by an external consultant. Because the external consultant has fewer biases about the organization and has less personal interest in the outcome than an employee of the company, the external consultant may be more objective.



Collect Data



Assess the mission, vision, strategy, and culture of the organization, from whatever written material there is in the company (check with the department or person who handles public, customer, or shareholder relations).



Collect existing data such as:

• Hiring statistics (acceptance rate, hiring rate, hiring projections)

• Turnover

• Compensation and benefits philosophy and practice

• Exit interview summaries

• Employee complaints (discrimination, harassment, safety, other)

• Promotion and advancement practices and trends

• Human Resources budget and expenditures

Where possible, compare the data you collected with market data. This information will provide you with a point of view for the next phase of the audit: the interviews. If, during the interview, discrepancies arise between the data and the interviewee's answer, you can explore the reasons for the discrepancy(s).



Conduct Interviews



The purpose of the interview is to collect input from the internal customer on their Human Resources needs and how those needs are being met. Begin the interview with top management. Next conduct interviews with a sample of subordinate managers including first line management.



The topics to discuss during the interview include:

• Perceptions of the company and its goals

• Strengths and weaknesses of top management

• Employee perceptions of the company and top management

• Relations with subordinates

• Support of career goals for self and employees

• Major Human Resources issues

• Which Human Resources functions work well

• Which Human Resources functions need improvement

The interviews provide direct feedback on the needs of the organization as stated by the customers. In addition they can provide indirect feedback. For example, the results may indicate that different organizations have conflicting goals. Perhaps a performance management system could correct this problem. Or perhaps communication isn't flowing well in the organization, suggesting a need for communication programs or some training and development.



Some of the information collected during the interviews will be sensitive. Confidentiality must be respected. Get advanced approval from top management on the questions you will ask during the interview phase.



Conduct the Regulatory Compliance Audit



The following areas should be audited as part of the regulatory compliance audit:

• Personnel files and record keeping (contain only job related information)

• Pay equity

• Job descriptions (ADA compliance)

• Legal postings

• Equal Employment Opportunity and Affirmative Action

• Forms (applications, internal forms, etc.)

• Workers' Compensation

• COBRA

• Fair Labor Standards Act

• Family and Medical Leave Act

• ERISA

• Legal reporting

Summarize the Results



Consolidate the information you collected. Compare the results with market surveys. Determine which practices are good/popular/effective/competitive. Determine which practices need improvement. Recommend specific improvements referring to the results of both the Effectiveness audit and the Regulatory compliance audit. Justify the recommendations. Determine how to measure whether the improvements are successful.



Obtain Approval from senior Management



Present the preliminary results and recommendations to senior management individually. Point out how these recommendations will support their needs. Obtain their support, then present the final results and recommendations to the senior management staff for final approval.



Implement the Program



Consider implementing the program in part of the organization as a pilot program. Monitor and measure success and seek to continuously improve processes. Be prepared to modify the program if an organizational change requires it.


From India, Bangalore
parashar
24

Article is good ......
You can also observe visible areas like people gossiping, loitering, too busy to attend to each other and so on. The cleaning of toilets, gangways etc. This shall provide cultural input before concluding.
Parashar

From India, Delhi
mohit019@yahoo.co.in
Hi all,
Its a good article on HR Audit. As Mr. Prashar rightly pointed out observation is one of tools along with Interviews, Questionnaire and Secondary data to carry out Audit for HR function in the organsiation.
HRD Audit is in itself a comprehensive process.
The HRD audit helps you to make a Scorecard for the HR function. The scorecard helps you to see whether the HRD Staff as well line managers possess the required HRD Competencies, the Devlopmental Leadership Style of Top Managemnt and Effectiveness of HR systems in the oganisation.
HRD Scorecard will help you establish the linkages of HRD activities with the organsaitional objectives/strategies.
Here is the link to some more articles on HRD Audit.
http://tvrls.com <link updated to site home>
Mohit Juneja

From India, New Delhi
BlackHawk_Leo
Thanx for sharing the info. Good article......... looking forward for more such good and quality articles Regards, Seema
From India, Mumbai
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