3 Reasons Why HR Audits Are Essential For Your Organization

HR Audits

We already know that there’s more to human resources than just hiring. After all, the responsibility of your entire workforce depends on the HR department, and that certainly is a BIG deal. Human Resources are the real heroes of the organization who are responsible for employee’s well-being. And it’s only fair that the human resources department’s well-being is also taken care of for them to do their job effectively.
That is when HR audits come into the picture. A Human Resources audit is a comprehensive examination of the HR department and their functions. Everything from recruitment, appraisals, exit interviews and more are analyzed, reviewed within the framework of the current HR policies and then the HR Audit process recommends where the department needs to improve.
Today, thousands of companies depend on HR audits for steady growth. Here are three reasons why you should start considering it too.

Helps The HR Department Work More Efficiently
No doubt the HR department knows what they are supposed to do, but certain policies grow outdated very often, especially after a period of major success in an organization. Pay related policies and the like can get easily obsolete due to small or massive shifts in the external environment and organisational performance. Also there are always chances that the employees find their way around the rules and start taking advantage of the company policies. HR audit helps the department analyze these issues and also provides answers to avoid them effectively.

Helps HRs Focus On Bigger Problems At Hand
The HR department is responsible for transactional as well as transformational activities. Transactional activities include record-keeping, documentation and other routine jobs. Transformational activities on the other hand include ground-breaking insights about employee performances, change management , identifying the bigger problems in the organization that inhibit employee performance and finding solutions. HR audits help identify opportunities for big transformations that will help the organization in the long-run by making it agile and adaptable. The HR department will spend more time fixing the more important issues rather than concentrating too only on dotting the i’s and crossing the t’s.

Important For Big & Small Companies Alike
If you think that HR audits should be conducted only by giant corporates, you’re mistaken. Today, even the smallest of start-ups need to conduct an annual HR audit.
Why it is important for the small companies to conduct an HR audit? Here’s why.

Small companies cannot afford expensive HR professionals. For them, HR audits are useful in understanding and following employee policies, hiring processes and the like. A proper HR audit helps detect potential violations early and avoid stiff penalties that a start-up can ill afford.

An organization that really cares about its people is the one that makes sure that HR audits are regularly conducted. What’s your opinion?

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