We have heard about periodic automobile and health checkups. Why are they done? Isn’t it to ensure that everything is fine and nothing untoward is to be expected? In the same way, HR audits are done to ensure that the entire HR process is healthy and in good condition to help the organization carry out its functions smoothly and without hassles.
HR audits are comprehensive
In a financial audit for instance, only the financial aspect of the organization is audited. In HR too, only the HR aspects are audited, but there is a lot to do! HR covers almost all facets of the organization and an audit of each of these is expected to be detailed and time consuming. An audit is essentially meant to ensure that there is self-discipline along the entire process. It is a means for self-assessment. It is based on the principle that left to itself; a system cannot self-correct and can accumulate undesirable practices over time.
Ideally, an HR audit should ensure that:
- Due diligence review is done for shareholders or potential investors/owners
- Compliance concerns that concern varied administrative regulations are being met;
- HR infuses a level of confidence in the organization;
- The organization’s human resources are being utilized appropriately and fully;
- Guidelines for future improvement of HR’s functions are regulated and implemented from time to time.
All this, of course, is easier said than done and is complex. But in the interest of the organization, HR should carry out audits of its own. This will ensure that the organization is on track with its goals.