Audit of human resources

economic-dictionary

The human resources audit is the analysis of policies, management techniques, processing, recruitment, training and, in general, of all the procedures that involve the management of human resources at a legal and economic level.

Human resource auditing has become firmly established in companies. Since although it is true that there are companies reluctant to do so due to the situations that it brings with it and that we will describe later, its objective is to improve the management of human resources in a company.

The human resources of a company are the people who work in it, without good relationships, lack of motivation, with inefficient procedures, lack of incentives or inadequate recruitment, the results of a company are weakened. So it is very important for a company to check that its human resources are 100%.

In addition, the audit of human resources not only plays an important role in the economic results, but also at the legal level. Sometimes the rush, the day-to-day and commitments with clients can cause certain legal issues to be neglected. The latter can lead to penalties and unwanted situations.

Human capital

How to perform a human resources audit?

Not all HR audits necessarily have to be done on the entire department. Thus, it could be the case in which we as a company are interested in conducting an audit on training, recruitment or even legal procedures.

That said, the process could be summarized as follows:

Presentation

In order to carry out an audit of human resources, it is advisable to indicate to the workers what is going to be carried out and what the objectives are. To see 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.

Analysis

Second, auditors must collect information about the environment, both internal and external. That is, on the one hand, they must collect internal information about the company, to analyze how the workers, processes, remuneration relationships, health status, etc. are working. But also, they must obtain information (and analyze it) from the outside to analyze it with the employees. For example, it could be 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 the wrong conclusions that put the blame on the company.

Strategy design

Based on the results of the analysis, those in charge of performing the human resources audit must design a strategy that improves the results. To do this, they will use not only their vision (external), but also the vision of employees (internal). 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 apart from the provisions of point 3, the auditors must prepare a report. In that report they should make clear what their analysis is, how change should be faced and what the expected results are.

Advantages and disadvantages of conducting a human resources audit

Although the idea of ​​conducting a human resources audit is to improve, it is not all advantages. Employees of the department could feel in the spotlight. Or even perceive that the audit is taking place because they are not doing their job well.

Advantages of the human resources audit

The possible advantages would be the following:

  • Improve the functioning of the department.
  • Carry out more effective strategies.
  • Avoid mistakes that have negative consequences for the company.
  • Build trust in workers.
  • Increase financial results.

Disadvantages of HR auditing

For their part, the disadvantages could be described as:

  • Workers' resistance to change.
  • Cost of the audit.
  • Apply the strategy and get no results.
  • That the auditors' analysis does not solve the problems.
  • Distrust of workers.

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