HR Auditing

How is your Human Resources Department doing?
Do you know if your employment practices are putting your organization at risk?
How do you know?

Your Finance/Accounts data is audited every year by an external agency to avoid future risk…
What about the HR data and statutory matters?

It is extremely important for an employer to regularly review their HR policies and practices to ensure organizational effectiveness and statutory compliance in order to avoid costly fines and/or lawsuits.
An objective, independent, arms-length assessment conducted by Human Resource Audit specialists is the best way to take stock of your organization’s HR functions, identify best practices and make adjustments as you head into the future.

What is HR Audit?

Human Resources Audit is a comprehensive method to review the current HR policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to ensure compliance with various rules and regulations.

Why HR Audit?

The purpose of an HR Audit is to recognize strengths and identify any needs for improvement in
the human resources function of an organization. A properly executed audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems.

• Help benchmark actual against desired performance and develop an action plan for addressing shortfalls.
• Save money by identifying and correcting inefficiencies and compliance problems.
• Reduces risk and liability.

Spinach Audit Process

• Interview conducted with HR personnel, Managers and others who are familiar with and responsible for various HR activities.
• Review of a cross-section of employee personnel records for appropriate documentation and fulfillment of record keeping requirements.
• Review of HR related forms, policies & procedures, job descriptions and related documents for ease of use and consistency with HR best practices.
• Review of records related to statute to check statutory compliance.
• Report Preparation which summarizes your current practices, identifies any areas of concern, and provides recommendations for change.
• Report Presentation – to present the report findings, explain concerns and recommendations, and discuss strategies to address the concerns.

Sections of review include:

• Recruitment and Orientation
• Employee Benefits
• Compensation
• Performance Management System
• Resignation process and exit interviews
• Job descriptions
• Statutory Records
• Personnel file

Benefits of the Audit

• Determine the effectiveness of HR plans, programs, policies, systems & procedures.
• Benchmark actual against desired performance and develop an action plan for addressing shortfalls.
• Save money by identifying and correcting inefficiencies and compliance problems.
• Reduces risk and liability..

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