Thursday, September 24, 2015

The Facts About HR Auditing

By Della Monroe


In the modern day, companies are concerned with making sure that they run as smoothly and efficiently as possible. There is great emphasis placed on creating the best practices, identifying areas of improvement, and ways to protect the company and its employees. HR auditing involves an in-depth review of the HR practices, procedures, policies and strategies of a company. This is done with the intent to improve the business in whatever way possible.

Up-to-date evaluations of a company are important. They are useful in evaluating whether certain areas are legal, effective and adequate. Results can also provide the decision makers of a company with valuable information related to specific areas that require improvements.

This process can be done in a number of ways. There might be a specific area of focus or the audit might be considered more comprehensive. Time, budgets and staff might also impact how this process is done. Each audit is different and may be employed for different purposes. Function-specific, compliance, best practices and strategic are four commonly performed audits.

Compliance audits are done to see that the company follows laws and regulations. These may be assigned on a federal, state or local level. With best practices auditing, companies can improve or maintain their competitive lead. This is because the process is centered on comparing the practices of the company with others who have HR departments doing exceptional work.

With strategic auditing, the focus is on identifying the weaknesses and strengths of the current system and its processes. This is done to see if they are in alignment with the HR department strategic plan or that of the company. Function-specific refers to a process in which the focus is on a certain area within the HR function. This may include performance management, retention of records, payroll and similar tasks.

A lot of benefits are linked to having these done. Generally, this process is a reminder of what members need to be doing, as well as the contribution they provide. It may also help with clarification of the role and help ensure uniformity. Companies might have this done in order to check compliance with specific requirements, reduce HR costs by improvement of overall efficiency, encouraging acceptance of needed changes within the department, and identifying HR problems.

This auditing process can be done at any time, often without any notice to the HR department. Not giving warning is encouraged because it provides more clear and accurate results. Professional auditors are the ones who perform these. The way they are done will range, but it important that those conducting them are fully aware of what is considered acceptable and what is not. The results are often given to the higher ups in a report and action is taken accordingly. It is recommended that these are done on a regular basis to ensure that everything in the department is running as it should.

The human resource department is a part of the company that is responsible for many tasks. This department and its workers are responsible for keeping people organized, reporting key relationships, supporting company goals, and more. Department staff are dedicated to providing effective procedures, people-friendly support and guidelines, and beneficial policies in a company. They ensure a company follows its guiding principles, values, mission and vision. Auditing this department is recommended to guarantee that it is running effectively.




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