An HR audit can be structured to be either comprehensive or specifically focused, within the constraints of time, budgets and staff.

There are several types of audits, and each is designed to accomplish different objectives.

These include; Compliance. Focuses on how well the organization is complying with current country employment laws and regulations to minimize openness to liability of lawsuits. Best practices. Such audits compare internal HR processes and policies with the accepted industry standards and with those companies identified .

This type of audit helps the organization maintain or improve a competitive advantage but also for a growing company such benchmarks ensure systematic growth of their HR processes. Strategic.

Focuses on strengths and weaknesses of systems and processes to determine whether they align with the HR department's and the organization's strategic plan. Function-specific.

Focuses on a specific area in the HR function (e.g.,payroll, performance management,records retention)

Rationale for Conducting an HR Audit

The changing nature of HR management demands that HR professionals participate and contribute fully to their organizations as true strategic business partners.

An HR audit involves devoting time and resources to taking an intensely objective look at the organization's HR policies, systems, practices, procedures and strategies to protect the organization, establish best practices and identify opportunities for improvement.

An objective review of the employer's current state can help HR evaluate whether specific practice areas are adequate, legal and effective.

The results provide decision-makers with the information necessary to decide which areas need improvement.

This HR audit will review two main parts:

An evaluation of the institute's operational HR policies, practices and processes with a focus on key HR department delivery areas e.g Recruiting both internal and external,

Employee engagement and retention Compensation & employee benefits Performance management Employee relations Training and development Leadership development and succession Organizational culture & ethics Job evaluations and analysis for proper job & position management A review of current HR indicators e.g., Number of unfilled positions The time it takes to fill a new position Turnover Employee satisfaction Internal grievances filed Number of legal complaints Absenteeism rates Occupational safety incidents

Key benefits of an HR-Audit

Despite it being time-consuming and costly it has benefits worth the investment, these include;

• The Human Resource Audit provides an opportunity to assess the financial advantages and disadvantages of the Human Resource Function and it’s overal contribution to the business goal and Mission,
• Benchmarks the function to ensure timely compliance with legal requirements Reduction of HR cost through more effective HR process, procedures and systems Promotes changes, professionalism and contribution of the human resource function.