Have you ever wondered what exactly is an HR audit? Does my company need one? When it is all said and done, what will my company get out of this audit?

ConnectedHR works with companies across Northeast Ohio to build and grow their human resources departments. In this article, we will cover what an HR audit is, how it’s conducted and why you should consider an HR audit for your business. Read on! 

What is an HR Discovery Audit?

An HR Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation, and systems to identify needs for improvement. During an HR Audit, an outside expert will assess compliance of your business with the ever-changing rules and regulations.

During this process your HR expert will:

  • Examine policies, procedures, systems, and overall functions
  • Ascertain primary HR needs
  • Identify areas creating legal risks
  • Identify HR strengths/deficiencies
  • Outline what needs improvement
  • Discuss HR best practices
  • Update all HR documentation

 Why Does Your Business Need an HR Audit?

Regular and in-depth reviews of workplace effectiveness have shown to provide a significant return on investment. An audit is the first step for companies who want to perform more effectively, reduce costly turnover and retain great employees.

How companies recruit and engage their workforce are determinative factors in a company’s ability to create a winning culture for their employees and customers. Bottom-line growth and profitability are heavily dependent on having the right people, offering the right benefits, and ensuring the right mix of structure and flexibility for their employees and management team.

 How an HR Audit Works

When you make the excellent decision to conduct an HR Audit for your business, you can contact an HR consultant, such as ConnectedHR. Your consultant will pair you with an experienced HR professional.

At ConnectedHR, our team of HR professionals will systematically assess your HR functions through a weekly process over a 4-week period.  We take a detailed look at how your business operates internally:

  • Policy Manuals
  • Handbooks
  • Recruiting and Retention Methods
  • New Hire Packets
  • Onboarding Procedures
  • Employment Forms
  • Job Descriptions
  • Personnel Files
  • Payroll Systems
  • Compensation
  • Safety Programs

From there, we will identify areas that need improvement such as:

  • Communication Breakdowns
  • Management Gaps
  • Specific Employee Challenges
  • Compliance Issues
  • Overall Workplace Culture

After our review, we will provide you with a report that not only to identify gaps but also HR areas needing further streamlining and individuals who could benefit from training. You will also be provided with resources, recommendations and next steps to improve your business.