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Types of Human Resource

Audits
-By Rosedeep Kaur Jammat
Urn no.: 2022-M-18092001A
An HR audit is an objective examination
of your business’s HR policies, practices,
and procedures. The goal is to look for

What is HR trouble spots and/or identify ways you can


improve. You can hire an outside company
to perform the audit or you can instruct
Audit? your HR department to perform an internal
audit.
Types of Human Resource Audit

• Record Audits

a. 1-9 audit :
• 1-9 audits is a legal requirement for the companies to verify that all their workers or
employees have valid authorization.
• It aimed at ensuring ongoing compliance with the employer sanction provision of the
Immigration and Nationality Act.
B. Employee File
• This audit makes sure that employees' files are in a locked and secure location and
that digital personnel files are encrypted and secure.

C. Payroll records:
• This audit is for whether detailed payroll records have been maintained and checking
who all have the access to it.

D. Record Retention:
• This Audit is about how long you are storing employee records and whether you are
adhering to the rules of record retention.
2. Legal Compliance audit:
• It ensures that the company’s practices are one with all employment laws.
• These audits looks into the leave structure, disability structure, health and safety etc.

3.HR audit checklist:


A. Employee Records:
• The first thing is to check the working of your Human Resource Information System
(HRIS), the organization must have a proper HRIS to track and search the information
efficiently.
B. Hiring and Onboarding process:
• This audit reviews that the company's applicant tracking system (ATS) is working at par
and as per your requirements.
• It ensures and checks the viability of the recruitment tools of the organization.

C. Compensation:
• It checks upon the national pay scale to offer a competitive salary package and locate any
pay disparity on the basis of race, disability, gender, caste, etc.
• Check the system to establish how you determine governing salary law to check upon
issues like average salary, minimum wages etc.
D. Performance Evaluation:
In this audit, auditors look at the performance tools currently used by the organization and see
if it is meeting the requirements or not also decide on the system to determine employee
promotion and demotion and check up on any favouritism in the workplace harming in the
performance appraisal or not.

E. Benefits:
• It includes audit of the current employee benefit package and to update to a more
competitive package for workers.
• Also, auditing how benefit package is being effectively communicated to the working
staff.
F. Training audit:
• In this, we audit the training programs for new hires of every department.
• Also, considering the mentorship programs and conducting yearly corporate equal
employment opportunity (EEO) Training.

4. Salaries and working hours:


• This audit uncovers the mistakes in the company’s salary structure and working hours for
its employees.
• Also, it revies the legal working hours for everyone salary compensation calculation etc.
5. Safety Audit:
• A safety audit is a process that evaluates the health and safety of a work setting.
• During an audit, a group gathers data about a location's operations.
• They identify hazards and illustrate how to make the area safer for employees.
• Organizational leaders use audits to develop safety procedures for their team members.
Conclusion
• Any HR audit can be a complex process that can also be time and resource-
intensive.
• However, the benefits far outweigh the effort.
• You can redesign your company’s processes and systems that can support business
objectives and goals.

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