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HR Audit

What is HR Audit?

An HR Audit is the process of evaluating the HR department’s performance, activities, and policies directed towards achieving organizational goals. It is conducted to identify the shortcomings and suggest remedies for the betterment of HR functions. An HR audit can either be partial, where only a few aspects are monitored, or comprehensive, where complete human resource monitoring is carried out. The two components of HR audit include:

  • Evaluation of HR policies, processes, & practices (recruiting, benefits, employee-relation, etc.)
  • Review of HR indicators (turnover, satisfaction, grievances, legal complications, etc.)

The importance of these two components is to eradicate legal risks and identify areas where value can be added to attract and retain top talents.

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