HR audits form an integral part of HR management. Supporting a review and providing analysis of all HR services, including policies and practices within the organisation, HR audits can prove to be essential for sustaining fairness, consistency, and high levels of performance across a business.
The focus of these audits is to ensure that the HR functions implemented in your organisation remain fit for purpose and that all systems and procedures are correctly followed by all departments.
Adherence to HR policies and procedures is essential to any business, ensuring you meet all statutory obligations, and providing a safe, secure, and fair environment for your employees at all times.
The most effective method to check your HR function is performing to a high standard is by hiring an HR specialist.
A team with the skills and expertise to successfully carry out an HR audit and help you implement robust strategies for improvement and change.
In this post, we look at HR audits in more detail and the benefits such an audit can offer you.
What is an HR Audit?
An HR audit is a valuable tool for business development that evaluates all HR services in the company, i.e., policies, processes, systems, documentation, etc. Analysing all areas of the HR function, from the hiring process, employee benefit packages, performance reviews, grievances, exit interviews, and more.
HR audits cover it all.
Ultimately, an HR audit helps senior managers identify which practices are working and which areas need further investigation and improvement.
Areas to review can include:
- Recruitment
- Appraisals
- Statutory and contractual notice periods (make sure to check out our latest post on notice periods HERE)
- Exit interviews
- Performance reviews
- Employee records (including payroll)
- Employee handbooks
- Onboarding
- Benefits and salary packages (checking pay meets national minimum wage)
- Training and development programmes
- Policies and compliance
- And more.
HR Auditing Importance
Various laws affect many stages of employment, and these laws are often subject to change and do, in fact, change regularly. Carrying out a yearly HR audit, therefore, allows you to check your policies and procedures to ensure they’re not only still relevant but also compliant and reflect the latest legislation and guidance.
Failure to meet regulations and set employment law standards can place you with a hefty fine and even potential lawsuits depending on the severity of the case.
A regular review of your HR function also ensures fairness and consistency across the business, where you can carry out audits comparing HR practices between departments (department audits can allow you to check salary structure, working hours, compensation, etc., to ensure fairness across the board).
Showing professionalism and commitment to fairness helps to strengthen employee satisfaction, keep staff turnover low, and instil a sense of confidence in management. And,
HR services, making for a happy and more productive workforce.
HR audit importance is heightened when you look at the need to protect and mitigate risk from your business.
Providing you with an insight into what is working well and addressing areas where there may be gaps in policies, pitfalls, or challenges, a robust HR audit allows you to take action. You need to know your weak areas in order to move forward, understanding better where you can allocate resources and improve for the future.
It is also an excellent opportunity to ensure that all the policies and procedures you have in place align with your organisation’s vision and values, as this alignment can affect performance and the overall effectiveness of the business.
As experts in outsourced HR services, trust us when we say, ineffective HR policies, procedures, and practices can damage your reputation as an employer, and finding yourself on the wrong side of HR legislation and law can be a significant financial mistake.
Benefits of an HR audit
An HR audit is not only efficient, but it also helps to provide insight into your business, allowing you to understand the good, the bad, and the “we need to change that asap.”
HR audits also:
- Help maintain consistency
- Strike the right balance between employee/employer needs and employee benefits.
- Maintain legal compliance
- Show your professionalism
- Help to streamline your responsibilities
- Create uniformity across departments and management levels
- Boost productivity
- Maintain and enhance reputation
- Ensure effective use of resources
- Allow you to analyse multiple aspects of your company.
- Promote positive change
- Increase transparency with employees
- Show a commitment to continuous improvement.
Outsourced HR Services
Using an external specialist in the field of HR services and audits can provide you with an independent, non-biased opinion. Supporting your business in checking and reviewing all policies and HR procedures to ensure a happy and productive workforce, fairness and consistency across the board, and full compliance with all UK laws and legislation.
At Bhayani Law, we know that HR audits can be time and resource intensive; however, we understand that these audits are vital in improving performance and future growth. That’s why our professional, qualified, and experienced team is on hand to provide you with the best-outsourced HR services around.
Call us today on 0333 888 1360 for an independent review, or email your requirements and questions to [email protected].
