What does HR Auditing Cover and what is its value?


Table of Contents

HR Audit Consulting is a new process for organizations to review the Human Resource policies, procedures , documentations and systems. It helps to identify the requirements for improvements and enhancement of the HR functioning . It is conducted to check whether the performance of managers has been fair in the overall interests of their organization.

The primary objectives of HR  Audit are as below..

It’s  an assessment of the payroll, benefits, and administrative policies and procedures. It focuses  firstly  on legal compliance and then takes suggestions.HR audit helps in identifying the HR programs which are more important in achieving the organisation’s goals. It helps in finding out how well the HR department is delivering these programs, this creates a benchmark to ensure continuous improvement and helps promote change and creativity.

The purpose of HR consulting audit is to identify the strengths and areas for improvement. A proper executed audit will reveal the areas having problems  and will provide recommendations and suggestions. 

A HR consulting audit covers the following steps:

Determining the type of area

Human resources is a wide concept, the organization may choose to conduct broader method to review the HR functions or they may decide to cover only specific areas as per their needs. For example an organization can choose to review only the polices and the procedures related to training and development or recruitment and selection. 

The Process

Audits are usually conducted via a questionnaire that is obtained through relevant HR areas. It can  also be conducted through interviews of managers and employees of the HR department. 

Undertand How We Conducted HR Audit For Our Client

Data Collection

This step covers the process of collecting data about the organisation and its HR practices. All the data is collected either through questionnaire or by interviewing relevant personnel about the procedures and policies that are being used in the company. 


HR Audit can be performed through measurement of effectiveness ,which can be later used to evaluate the performance that employees are providing towards the organization. 

To assess the efficiency of the HR functions, the collected information needs to be compared with the pre determined standards. 


After collecting and comparing the results the audit team summarises the findings and provides feedback to the company’s HR personnel and the senior management in the form of an audit report.

Plan of Action

Once the results are out the information is used  for improvement in the working of the HR department. The results of the audit need to be categorised on the basis of importance. The organization should examine the area of weaknesses and find different ways to overcome them. 

8 Steps of implementing Successful HR Audit For A Company

Value of HR Audit Consulting

In today’s scenario the role of HR has started evolving in many organizations. As they look to identify , hire and train and become a mentor for their employees and in turn convert them  into contributors. That is why conducting an HR audit is such an important step for companies to take as it focuses on strengthening  the Human Capital.

 HR Consulting audits are used to assess the compliance of your HR policies and procedures. They can see the issues before they become a real problem and help in finding the right solutions. HR consulting audits can be used for more than just defining risk. They can be used to identify what you are doing right, and  help the organization to improve inefficiencies and decrease the costs. 

An HR consulting  audit can help determine how HR can support the overall goals in order to build a better business. Since an HR audit is the only way organisations  can assess whether the HR processes and policies are benefiting or harming their overall business. While HR audits are essential, managing human resources requires a lot more than simply examining the processes and policies.

HR consulting audit is important for every organization. Here are few points why it is valuable: 

Thus,  HR leaders must engage and have a  constant observation with continuous improvement of the organisation’s policies, procedures and practices. This will ensure that the company achieves and retains its competitive advantage.It can be used as a measure to evaluate all the activities of an organisation as it provides a feedback and idea about how managers are meeting their responsibilities. HR Auditing is important and adds a value to the organizations. 

Connect  or write us at reach@husys.com, for any queries regarding how your can buid a process oriented HR Department with HR Auditing or any HR related to your Human Resource.

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