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HR Audit – my routine check up

HR Audit1I always get this soothing effect after I have carried out my periodic HR Audit.  It’s my routine check-up to assess the health of the HR department and uncover any conditions that need to be addressed.

  1. One is in position to ascertain which tools are absent and yet vital in the human resource management day to day operations.
  2. An HR Audit informs areas where HR functions are working well, functions that need improvement and areas where HR is not complying to internal or external set standards, regulations and laws.
  3. The process instills a sense of confidence in management and the human resources function that it is well managed and prepared to meet potential challenges.
  4. A “due diligence” review for shareholders or potential investors/owners.

A Sneak peek into selected Checklist items, not exhaustive

HR department

Head of HR reporting lines

Adequate HR officials with the required HR knowledge, skills and abilities

Physical facilities of the HR department

Is there open communication to and from the HR department?


The Organogram in place supports the business model.

HR strategy alignment to business strategy

C-suite interest and opinions in HR issues

HR’s boardroom influence

Human Resource Transformational and shared services programs

Corporate culture and employer branding

Are employee rules and regulations in place?  Are they communicated?  Are they enforced?

HR work processes clearly defined from start to end.  Are the same processes used for all jobs, all locations? Are processes followed consistently?

HR Budget

Outsourced HR tasks and Contractor Management outsourcing objectivity

Human Resource Planning

What human resource planning processes are used?

Are there periodic analysis of the demand and supply of labour?  Talent management plans?

How are candidates sourced?  Are job openings first offered to current employees?  How are candidates selected?

Private areas for interviews and employee consultations

What are the on-boarding practices?  Are applicant references checked?  Do employee orientations take place?

Are there up-to-date job descriptions?  Are employees correctly designated?

Employee value propositions and engagement practices

HR Records management and Reporting

Human Resource Information System with Self-service in place.  How up-to-date is the technology?  Is the data clean?

HR Analytical reporting: ratios, metrics, statistics and trends Are turnover rates monitored?

Up to date and accurate employee manual files and record keeping in place.

HR Forms (applications, internal forms, etc.) leave plans, status and accruals tracked.  Time management, attendance and absence management

Are workweeks identified and defined?  Are full-time and part-time hours defined?  Are shifts defined?  How is overtime Compensated?

Legislative/Regulatory Environment/compliance


Compensation and benefits philosophy and practice.  Pay equality.  How is base pay policy set?

What grading/job evaluation systems are used?  How are pay increments decided?

What variable pay practices are in place?  What is the overall benefits plan?

Workers Compensation, Retirement Plans, Health and life Insurance Plans Safety and Health policies and programs

Workplace wellness programs

Employee Development

Objective Performance Management System

Promotion and advancement practices and trends.  Are there any critical skills shortages? What succession planning processes are used? Are there any critical succession issues?

Support of employees career goals.  Are there any staff development programs?

How is the training program managed?  How much training is given?

Employee Relations

Employee complaints management (discrimination, harassment, safety, other).

Equal opportunities and positive action. What unions exist and what jobs are covered? What collective agreements are in place, when do they expire?

Workforce diversity; Is there anything unusual in the distribution of worker age, gender, ethnicity etc.?

Employee perceptions of the company and top management How many grievances are there per year? Are there any outstanding grievances?

How are disciplinary issues handled to ensure fair decisions.

Are processes in place to manage compliance issues for all relevant jurisdictions? Is there any outstanding litigation?

Employee separation

Do exit interviews take place?  Are final paychecks provided on time?  Are terminal benefits accurately computed?


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This entry was posted on 20/11/2013 by .
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