Employees represent one of the most important assets in an organisation. A HR department is entrusted to secure the needed workforce, to train and to develop employees. It is also involved in the orientation of employees and also in terminations among other functions. HR audit helps to evaluate the competency of an organisations human resource department.
What is HR audit?
An HR audit helps to evaluate the HR department effects and contribution to the achievement of organisational goals and objectives. The senior management is, therefore, put in a position to evaluate the effectiveness and efficiency of the human resource department. Through HR audit, any weaknesses in the human resources management programme are identified and corrective action are taken.
How HR audit works
HR audit basically involves examining current HR policies, strategies and practices to evaluate their effectiveness. The audit will engage interviewing of key staff, review of relevant documentation and the completion of a well structured questionnaire. All HR systems, including HR development, HR information and the service role of human resource, are audited. The data obtained is then compiled and customised to comprehensive report. Specific recommendations are then made to improve the performance and efficiency of the human resource department.
HR audit report
After complete assessment of systems in the HR audit, a report is submitted. The report identifies areas of improvement and provides relevant and practical solutions. It may also advise on a legally defensible frame-work, what is currently happening in the market place and the best way to train employees. The report does not only look at the current human resource programmes, but also the future implications to the organisation.
The importance of an HR audit
Employees are an asset to a company and play a vital role in the achievement of the goals and objectives. The senior management, therefore, needs to understand how efficient its human resource department functions are. Most companies work to ensure the minimum employee turnover. The retention of employees is a key role played by the human resource department. However, the department should also ensure that skilled employees are recruited, trained and developed. An HR audit brings to light the success or the weaknesses of the human resource department in an organisation.
Involving human resource department in the audit is very beneficial. This will help them to improve the HR function. Conducting an HR audit helps the HR managers to increase their efficiency in human resource functions. This adds value to the organisation and improves the HR department as well.