Why have HR Audits? The purpose of the HR Audit is to conduct a more in depth analysis of the HR function to identify areas of strength and weakness and where improvements may be needed. Conducting an audit involves a review of current practices, policies, and procedures. What should be audited?

Areas that should be audited include, but are not limited to: Legal compliance Record-keeping (personnel files, etc.) Compensation/pay equity Employee relations Performance appraisal systems Policies and procedures/employee handbook Terminations Are HR audits necessary? Employment law is an ever-changing field.

Your policies and procedures must change with the laws if you hope to avoid litigation, noncompliance impact the HR department, the organization, and its employees. An HR Audit can help to ensure legal compliance while measuring the effectiveness of HR programs.