What is an HR Audit and Why Is It Important?

What is an HR Audit and Why Is It Important?

Clients often ask us about HR audits and their significance.

Many companies have never undergone one and may not fully understand their vital role in ensuring smooth business operations and reducing the risk of future legal issues and penalties.

In a nutshell, an HR audit is a comprehensive evaluation of your company’s HR policies and procedures.

We consider various areas, including:

• Legal compliance
• Record-keeping
• Performance appraisal systems
• Policies and procedures/employee handbook reviews
• Employee benefits
• Recruitment and terminations
• Health, safety and security

You might believe that your current HR systems are effective and compliant.

In such cases, the audit’s purpose is to double-check and provide peace of mind. It’s surprising how often clients overlook crucial HR elements due to their unawareness of their significance, such as maintaining up-to-date and accurate records.

Many companies we work with feel they lack expertise in this area and prefer an expert to review everything, highlighting non-compliant or outdated areas.

We meticulously examine all aspects of your HR practices.

If improvements are needed or new processes must be established, we’ll create a detailed best practice plan and can even help implement it to ensure everything aligns with legal requirements.

How often should you conduct an HR Audit?

It’s advisable to have a complete audit regularly since employees change, and legal requirements evolve. Ideally, we recommend an annual audit or more frequently for larger companies.

What’s your next step?

Contact our team at 0798 393 6747, and we’ll arrange a discovery call to explain how we’ll conduct your audit and provide you with peace of mind. Alternatively, you can book a free consultation at your convenience by clicking here.