An HR audit is an assessment of the state of HR administration and due diligence of internal company regulations, which includes labor laws and regulatory work with staff, in order to identify irregularities in the compilation, registration, storage and systematization of personnel documentation and formulate recommendations for the way the HR department should work in the future.
Execution of an HR audit has these goals:
- preparation for the employer to undergo audits by government labor inspectors or to obtain a certificate of trust;
- identification of potential risks and areas for further work and improvement;
- protection of the employer in the event of a dispute.
- It is appropriate to carry out an HR audit:
- during preparation for a government labor inspection;
- when changing responsible persons (organization heads, HR managers, chief accountant or chief financial officer) if an audit of payroll is simultaneously taking place;
- when selling or reorganizing the business;
- when faced with labor disputes with employees in court.