Conducting periodic HR audits is a straightforward way to
ensure effective use of an organization’s human resources and to maintain or
enhance HR’s reputation within the company. An HR audit is basically an
investigation of the organization’s current practices, policies, and
procedures. The price of conducting an HR audit is very small compared with the
potential risk companies take from lawsuits, noncompliance penalties, and
failed business strategies. Investigations by government agencies are conducted
for a number of reasons, all having to do with enforcement of the laws and
ensuring an employer’s compliance. Many are initiated by employee complaints,
and HR audits will ensure that employees will not be filing complaints.
The type of audit and how frequently a company conducts
audits generally depends on the company's business needs.
There are many benefits to conducting HR audits. These
include:
• Identifying and prioritizing risks
• Building better communication between HR and a company's
management team
• Improving communications and morale with employees
• Standardizing a company's policies and procedures to avoid
lawsuits based on discrimination
• Using audit findings to help the company function more
efficiently and better serve employees and customers
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