Purpose and Reasons for a Human Resource Audit
Rahul Goyal, Student (MBA), India, Member
The purpose of a HR Audit is to recognize strengths and identify any needs for improvement in the human resources function.
A properly executed audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems. Some of the reasons to conduct such a review include:
• Ensuring the effective utilization of the organization’s human resources.
• Reviewing compliance concerns with the myriad of administrative regulations.
• Instilling a sense of confidence in management and the human resources function.
• Maintaining or enhancing the organization’s and the department’s reputation in the community.
• Performing a “due diligence” review for shareholders or potential investors/owners.
• Establishing a baseline for future improvement of the HR function.
Do you think it is necessary to do a HR audits in every organisation on a regular basis (like financial accounts audits are done periodically), or is it done only if a company is facing problems relating to HR?