The Human Resource Audit as an Improvement Tool

The Human Resource Audit as an Improvement Tool

Regardless of the type of company or the size of your HR department, the HR Audit is a simple, yet comprehensive tool to analyze and improve your effectiveness as a function.

The audit is made up of four main steps:

1) Define desired HR practices for your organization

2) Assess current practices against the criterion that you have established

3) Analyze the results

4) Establish improvement goals and take action

This simple four-step approach can be repeated as the annual planning and goal setting process occurs within your company. Progress can be measured against goals and a continuous improvement cycle naturally unfolds.

Purpose(s) of an Audit

The audit can serve any of the following purposes:

To clarify desired practices of HR work and roles within the organization (HR Department, Line Managers).

To establish a baseline for future improvement.

To evaluate current effectiveness.

To standardize practices across multiple sites within a division or company.

To assess current knowledge and skills required of HR practitioners.

To improve performance levels to key customers within the organization.

The Audit Process

Step One--Defining Audit Statements

Definition of desired HR practices can occur through in a variety of ways.

A good starting point is to take some time and reflect on the legal requirements and programs that the department must administer. Simply listing them is a good first step.

Next, consider your areas of responsibility and traditional HR practices covered by your function: They may include HR Planning, Staffing, Performance Management, Employee Relations, Compensation and Benefits, Training and Development, Safety and Wellness,

Employee Surveys, and Communications. Finally, other areas to consider are company initiatives that the HR function may be required to support, i.e. internal customer requirements. Specifics are unique to your company, but examples could include supporting a Total Quality Management initiative, Team Based Work System, etc.

With this list in hand, a statement can be written about each major practice that you want to define. Typically, they are stated in the present tense and in a positive manner. The following examples illustrate these traits:

The staffing process is documented so that the responsibility of each person in the process is clear and understood.

Performance appraisals are completed for each employee in the organization.

There is a train-the-trainer program for each major training program within the company.

New employees complete a new hire orientation program of key company policies and procedures within the first 30 days of work.

There is an issue resolution process that is well understood and used by employees.

As you may notice, definitions can be as complete or detailed, as the developer desires.