The human resources audit is the analysis of the policies, management techniques, processing, recruitment, training and, in general, of all the procedures that involve the management of human resources at the legal and economic level.
The human resources audit has been established strongly in companies . Since while it is true that there are companies reluctant to do so because of the situations that it brings and that we will describe later, its objective is to improve the management of a company’s human resources.
The human resources of a company are the people who work in it, without good relationships, lack of motivation, inefficient procedures, lack of incentives or inadequate recruitment, the results of a company are weakened. So it is very important for a company to verify that its human resources are 100%.
In addition, human resources auditing not only plays an important role in economic performance, but also at the legal level. Sometimes, hurries, day-to-day and commitments to clients can cause certain legal issues to be neglected. The latter can lead to sanctions and unwanted situations.
How to conduct a human resources audit?
Not all human resources audits necessarily have to be done over the entire department. Thus, it could be the case in which we are interested as a company to carry out an audit on training, recruitment or even legal procedures.
That said, the process could be summarized as follows:
In order to do a human resources audit, it is advisable to indicate to the workers what will be done and what the objectives are. To check what works better or worse, as well as see what can be improved and how it is essential to have the collaboration of the team.
Second, auditors should gather information about the environment, both internally and externally. That is, on the one hand they must collect internal information about the company, to analyze how the workings of workers, processes, remuneration relationships, health status, etc. are. But also, they must obtain information (and analyze it) from abroad to analyze it with employees. For example, it could happen that the reason many employees decide to leave is because there are larger companies capable of offering better salaries. It is important to obtain this type of information so as not to reach erroneous conclusions that place the blame on the company.
Based on the results of the analysis, those responsible for conducting the human resources audit should design a strategy that improves the results. To do this, they will use not only their (external) vision, but also the employees’ (internal) vision. At the end of the day, what it is about is that the strategy is carried out and if those involved are not for the work, the strategy will not be developed correctly.
Human Resources Audit Report
Finally, and outside the provisions of point 3, the auditors must make a report. In that report they should make clear what their analysis is, how the change should be addressed and what are the expected results.
Advantages and disadvantages of conducting a human resources audit
Although the idea of conducting a human resources audit is to improve, not all are advantages. Department employees may be in the spotlight. Or even, perceive that the audit takes place because they are not doing their job well.
Advantages of human resources auditing
Possible advantages would be the following:
- Improve the operation of the department.
- Carry out more effective strategies.
- Avoid mistakes that have negative consequences for the company.
- Build trust in workers.
- Increase economic results.
Disadvantages of the human resources audit
On the other hand, the disadvantages could be described as:
- Resistance to change of workers.
- Cost of the audit.
- Apply the strategy and not get results.
- That the analysis of the auditors does not solve the problems.
- Distrust of workers.