HR audits are sometimes overlooked, even though they’re an essential part of business growth and development. This month, we’ll be publishing a four-part series that covers their purpose, the ideal schedule, preparing for an audit, and what you can expect to achieve from an HR audit.
Regardless of whether your company is public or private, certain government restrictions will always apply. While many companies focus on having internal checks and balances that relate to finances, human capital is often included in this, though is frequently overlooked. Certain disclosures may have to be made to investors regarding conflict of interest as well. On top of this, hiring and retention practices may become a legal issue should an individual come forward and claim that they were treated unfairly. The documentation provided in audits will either allow your company to catch genuine issues and current them or defend itself against fraudulent claims in court.
In addition to legal protection, conducting regular HR audits can impact your company’s growth and behavior. An audit can help your organization to:
It’s best to customize your HR audit based on your organization’s needs. Here is a checklist to get you started:
By monitoring these items on a regular basis, you’ll be able to improve the effectiveness of your HR department and prime your company for stronger growth. It is possible to have an internal party examine your processes, but because biases exist and internal employees have the tendency to accept things how they are, rather than examine items for potential improvements, it’s far better to retain a third party to handle the HR audit for you. Contact us for information on how we can help you with your HR audit and check back on our blog for the remaining three parts of this series.