HR audit
What is an HR audit?
An HR audit, also known as a personnel audit or employee audit, is the process of assessing the competencies of employees, the quality of their duties, and the effectiveness of personnel management. A personnel audit allows you to check how employees use their skills in their daily work, what their strengths are, and whether they meet the needs of the organization.
In a company, such a survey supports the review of HR processes, planning development activities and improving personnel management. It can include various forms of cooperation – from employment contracts, through civil law contracts, to temporary workers performing tasks in the workplace.
What areas does an HR audit cover?
An HR audit covers the most important processes related to employee management – from recruitment and onboarding of new employees, through training, periodic evaluations and remuneration, to benefits, organizational culture and company structure. As part of the analysis, it is checked whether activities are compliant with procedures and effective in terms of costs, time and impact on the functioning of the team. It is also important to verify compliance with the law, including employee documentation, GDPR, labor code and health and safety rules.
When hiring temporary workers, the auditor analyses whether the rules of cooperation are clearly defined and in accordance with the regulations. He checks m.in.. employment conditions, place of work, scope of duties and information provided before the start of work. He also assesses safety issues, including hygienic working conditions, personal protective equipment and qualification requirements for the position.
When is it worth conducting a personnel audit?
It is worth conducting a personnel audit when there are problems with the quality of services or goods, efficiency, timeliness, turnover or the number of errors in the company. It can also be preventive and help identify potential problems, especially in the event of changes in the organizational structure or HR strategy. It also supports setting training goals for the entire team.
An audit is also important when a company wants to hire a temporary worker, uses the services of a temporary employment agency or operates seasonally. In such a situation, it is worth checking the documents, rules of cooperation and description of tasks before concluding a contract.
What can an HR audit detect?
An HR audit allows you to detect problems with the quality of work, timeliness, efficiency, employee turnover and the growing number of errors. It also helps to detect weak points in the organization in advance and plan the necessary changes.
Such an analysis is especially useful before reorganization, change of HR strategy or preparation of a training program for the entire team. Thanks to it, you can better assess the daily functioning of the company and indicate areas that need improvement.
Who can conduct an HR audit?
An HR audit can be carried out by an internal team, a qualified employee, an external auditor or a consulting company. HR, labour law and health and safety consultants and specialists identify risks, evaluate practices and prepare recommendations. Modern tools such as a competency interview, development center, psychological tests or HR data analysis are also helpful.
Internal or external audit – what to choose?
An internal audit is usually less costly and benefits from knowledge of the specifics of the company, but its effectiveness depends on maintaining impartiality. An external audit provides more distance, comparative experience and independence, which allows you to look at the company in a more objective way. This solution is especially useful for companies that use temporary work as employers or work with several agencies at the same time.
Methods used in HR audit
An HR audit analyses both employee documentation and internal company procedures, including personnel files, regulations or recruitment reports. An important element is also conversations with employees and observation of processes, which help to better understand the key areas of the organization’s functioning. A personnel audit may additionally include tests, in-depth interviews, a development center and an assessment of the employment structure. The legal security of an HR audit minimizes the risk of financial penalties and litigation resulting from errors in documentation.
Effects of an HR audit for a company
The result of an HR audit is a detailed report with an improvement plan and recommendations for HR, process, procedural or benefit changes. The document indicates areas for improvement, good practices and legal risks, as well as helps to objectively assess personnel management. The audit can also support the employer’s image by better matching benefits and development paths.
