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HR Audit: Compiled By: Mahesh K Prasad Head-Human Resources
HR Audit: Compiled By: Mahesh K Prasad Head-Human Resources
Like any other function, the performance and contribution of HR should be audited regularly. The questions to which answers should be obtained are:
1.What strategic contribution is being made by HR to the achievement of business/corporate objectives? 2.To what extent are there well-articulated and agreed HR strategies which are aligned to the business strategy and which are integrated with one another? 3.What role does HR currently play? Is this role appropriate in the context of the organization? 4.To what extent has the responsibility for HR issues been devolved to the management? 5.How well does HR reconcile the need for devolution with the need to ensure that organizational, ethical and legal obligations and requirements are being mf consistently? 6.What evidence exists that HR is being innovative in a practical and business way, based on an analysis of the business and people needs of the organizational and benchmarking?
7.How well is HR performing by reference to quantitative measures such as added value per employee, absenteeism and attrition? 8.How well is HR performing in terms of service delivery in fields such as recruitment, training, reward management, health and safety, the management of equal opportunity and diversity, advice on employment law and legal obligations, the provision of employee assistance programmes and the maintenance and use of personnel information systems? 9.To what extent does HR express proper concern for ethical considerations, the interests of all stakeholders (employees as well as management), enhancing the quality of working life and achieving a satisfactory work/life balance? 10.What ' contribution has HR made to the improvement of the employee relations climate? 11.How well is HR regarded by its customers - management, line managers, employees generally, employee representatives, as measured by formal assessments or opinion surveys? 12.Is the HR function well-organized and properly staffed with qualified professionals who are actively concerned with continuous professional development?
DEFINITION-HR AUDIT
The Human Resources (HR) Audit is a process of examining policies, procedures, documentation, systems, and practices with respect to an organizations HR functions
PURPOSE-HR AUDIT
The purpose of the audit is to reveal the strengths and weaknesses in the human resources system, and any issues needing resolution. The audit works best when the focus is on analyzing and improving the HR function in the organization. The audit itself is a diagnostic tool, not a prescriptive instrument. It will help you identify what you are missing or need to improve, but it cant tell you what you need to do to address these issues. It is most useful when an organization is ready to act on the findings, and to evolve its HR function to a level where its full potential to support the organizations mission and objectives can be realized.
The team works to collect information to answer the HR audit questions in each of these categories. The focus is on how these activities and tasks are actually performed in the organization. The first step is to collect all the pertinent information. The process of getting information, in and of itself, can be quite informative.
1.Roles, Head Count, & Human Resource Information Systems (HRIS) How many employees are currently on staff? How many employees are: - Regular - Probationary - Temporary - Full Time - Part Time - Exempt - Non-Exempt
What is the definition of a part-time employee? (i.e., What is the maximum number of hours an employee can work to be considered part-time?) What is the minimum number of hours an employee has to work to be considered full-time? How long is the probationary period? Are employees aware of their status? How long can an employee be temporary? How many employees have supervisory responsibility? Are there currently up-to-date job descriptions for all employees? If not, which ones dont have descriptions? Are independent contractors used? If so, how many are being used? And, for what functions? Is the point test for Independent Consultants being used for classification? Have issues related to classification of employees been raised?
2.Recruitment
How did the work force get to be the current size? What are some of your organizations future needs for personnel? What are the procedures for hiring in your organization? What recruitment sources are used? (e.g., advertisements, referrals from other agencies, personal contacts) Are current employees given appropriate consideration for promotion or lateral position changes? Who does the preliminary screening of candidates? Who selects candidates for interviews? Is training provided for those who conduct interviews? How is the recruitment, screening, and selection process documented? What is the interview process that is used (e.g., individual, sequential, panel)? Who holds final authority to hire? Who checks references? How are the reference checks documented?
2 .Recruitment
Who makes the offer of employment? Where is the hiring paperwork generated? Who negotiates compensation packages? List the practices you believe are unique to your organization. What is the turnover rate (percent of employees leaving each year) in your organization? Has this changed over time? Who gives references for former employees?
3.Documentation
Where and with whom are the personnel files currently held? What documents are held in personnel files? How are the following documented by your organization? - Hiring: Application, Interviewing, and Reference Checks - Compensation and Benefits - Transitions - Paid Time Off - Training - Discipline - Work History - Work Assignments - Significant accomplishments - Emergency contact informdation - Performance evaluation and performance management - Termination
3.Documentation
How long are files held and where are they stored after employees leave? What is the interface between HR and Finance? Is a payroll service used, and if so, which one? Does the payroll service provide all governmental employment filings? Is there training of managers and employees about personnel files, and policies and procedures for accessing them? How is Paid Time Off documented? When requests for information are made to your organization, who fills the request? Is an HRIS system being used, and if so, which one?
10.Employee Relations
11. Safety 12. Resourcing