HR Audit

HR Audit is comprehensive method (or means) to review current human resources policies, procedures. As a HR Professional you should have a good knowledge

Q.1 What is the objective of HR Audit?
HR audit is defined as a diagnostic tool, but not a prescriptive instrument. HR audit reveals the strengths and weaknesses in the HR resources system and identifies issues that requires resolution. The HR audit assist evaluate past performance assesses present circumstances that determines future remedial action to maintain the “people” mission on target.
Q.2 Who is responsible to perform the audit?
In an organization the HR department can perform an audit in-house. But there are various challenges that the process of HR audit poses such as
1. Department must possess the expertise
2. Time to perform the audit
3. Ability to be objective in acknowledging discrepancies in current procedures
4. Ability to make organizational changes. Some other option to follow some stricter audit protocols and hire external legal counsel to conduct the audit. There are some organizations, which may be beneficial to have an outside consultant who has no personal stake perform the audit.
Q.3 Name the various principal points in an HR audit.
The various principal points in an HR audit are -
1. Fair Labour Standards Act Compliance
2. Disability Accommodation
3. Health Insurance Portability and Accountability Act (HIPAA) compliance
4. Interviewing and Hiring Processes
5. Leaves of Absence Policies
6. Payroll Management
7. Substance Use Policies
8. Wages and Hours
9. Performance Management
10. Termination Processes
11. Employee Development
12. Conflict Resolution Therefore understanding the details surrounding the execution of an HR audit is an important step for employers to take.
Q.4 Why do we require HR Audit Process?
The HR audit permits to identify whether the organizations strategy and practices are strategically designed, effective, problem-free and most importantly, legal. Therefore without regular audits, you open yourself and your company up to decreased efficiency, unhappy employees and lawsuits. Since alot depends on an audit and it can be difficult to get everything in order, you must first know when an audit is truly important.
Q.5 When to conduct HR Audit?
Itis very important to know when to schedule an audit can be extremely straightforward since very often, they should be conducted on a regular basis to identify any actual problems. Therefore an audit is a chance to not only root out existing issues, but also to assess what your organization is doing well and what you could do differently to increase efficiency or reduce costs.
Q.6 Describe the five steps to conduct HR audit?
Steps to conduct HR audit are -
1. Determine type and scope
2. Collect data
3. Analyze results
4. Recommend and implement changes
5. Make continuous improvements
Q.7 What are the benefits of HR Audit?
The benefits of HR Audit are -
1. Reduced risk of legal action against your company
2. Improved management and morale of employees
3. Increased safeguards against governmental audits and fines
4. Less wasted money from inefficient processes, procedures or policies
Q.8 What should you do to analyze the data and results collected in HR Audit process?
In order to assess the findings of HR audit, compare them with common HR benchmarks. It is important to determine how the company is stacking up against similarly sized companies in the industry so as to identify where to make improvements. For instance if the company is in the automotive industry, a quick search will bring up reports on key benchmarks and industry overviews.
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