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    What Is The First Step in An HR Audit

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    Otty Lucy
    The first step in an HR audit often involves reviewing company policies and procedures. There are different types of HR audits that have varying first steps, but they generally serve to establish best practices and identify opportunities for improvement. The first step of a compliance audit focuses on employment documentation and information storage policies to ensure compliance with laws. A best practices audit first evaluates current HR processes to compare against industry standards. And a strategic audit's first step is a writing exercise to see how closely HR aligns with business goals.

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    What Is The First Step in An HR Audit

    Uploaded by

    Otty Lucy
    30 views2 pages
    The first step in an HR audit often involves reviewing company policies and procedures. There are different types of HR audits that have varying first steps, but they generally serve to establish best practices and identify opportunities for improvement. The first step of a compliance audit focuses on employment documentation and information storage policies to ensure compliance with laws. A best practices audit first evaluates current HR processes to compare against industry standards. And a strategic audit's first step is a writing exercise to see how closely HR aligns with business goals.

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    What Is the First Step in an HR Audit

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    The first step in an HR audit often involves reviewing company policies and procedures. There are different types of HR audits that have varying first steps, but they generally serve to establish best practices and identify opportunities for improvement. The first step of a compliance audit focuses on employment documentation and information storage policies to ensure compliance with laws. A best practices audit first evaluates current HR processes to compare against industry standards. And a strategic audit's first step is a writing exercise to see how closely HR aligns with business goals.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views2 pages

    What Is The First Step in An HR Audit

    Uploaded by

    Otty Lucy
    The first step in an HR audit often involves reviewing company policies and procedures. There are different types of HR audits that have varying first steps, but they generally serve to establish best practices and identify opportunities for improvement. The first step of a compliance audit focuses on employment documentation and information storage policies to ensure compliance with laws. A best practices audit first evaluates current HR processes to compare against industry standards. And a strategic audit's first step is a writing exercise to see how closely HR aligns with business goals.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    What Is the First Step in an HR Audit?

    by Jackie Lohrey, Demand Media

    The first step in an HR audit often involves a policy review.

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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.

    Related Reading: Checklist for HR Audit


    Strategic Audit
    The HR department doesn’t function as an independent unit, but should always reflect and support strategic business
    goals and objectives. A strategic HR audit evaluates how well HR policies and procedures align with company
    goals. Instead of using a checklist and reviewing policies and procedures one-by-one, the first step in a strategic HR
    audit is often a “fill-in-the-blanks” writing exercise. Filling in the answers to open-ended and increasingly narrower
    statements can reveal how closely HR perceptions match with those of the business. Statements such as “The most
    important things to accomplish for the organization are ______,” “The goal and measurement for each is ______”
    and “They will be communicated through ______” can confirm whether HR and the business are on the same page
    or signal a need for changes.

    Specific Function Audit


    Specific function HR audits evaluate a single function, task or area. Because there is most often a reason for
    conducting a specific function audit, the first step is to identify the “what” and “why” or the scope of the audit.
    Specific function HR audits can include anything from general recordkeeping, recruiting and hiring practices, an
    audit of employee handbooks, performance appraisals, disciplinary policies and procedures, compensation policies,
    or vacation and leave-of-absence procedures.

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