What Is The First Step in An HR Audit
What Is The First Step in An HR Audit
What Is The First Step in An HR Audit
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An audit is a methodical evaluation of a process or situation. In a human resources audit, this can include a review of
HR strategies, policies, practices and procedures. An HR audit serves to establish best practices and identify
opportunities for improvement. Although the first step an auditor takes depends on the type of HR audit being
conducted, the first step sets the stage for all remaining steps, and because of this, the first step in each is critical.
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Compliance Audit
An HR compliance audit looks to see how well and whether HR policies, procedures and protocols comply with
federal and state employment laws. The objective first is to identify and correct issues that could lead to litigation or
expensive noncompliance penalties, then assess whether procedures are efficient and cost effective. The first step in
a compliance audit often focuses on employment documentation, documentation storage policies and information
storage. Of special importance are the procedures HR follows to collect and process Employment Eligibility
Verification Form I-9s, prevent identity theft via access to Social Security numbers, and follow records retention and
destruction policies.
Best-Practices Audit
A best-practices audit helps a business maintain or improve a competitive advantage by comparing current HR
processes with one or more similar companies or to industry best practices. The first step in a best-practices audit is
to conduct an evaluation of current HR processes. A checklist that starts with a high-level evaluation of company
policies and procedures and becomes increasingly narrower is a common best-practices auditing tool. A best-
practices audit in total includes an evaluation of all HR processes and procedures such as work force planning,
recruitment and selection, performance management, and health and safety.