Is It Time for Your Company to Conduct an HR Audit?

Human resources professionals are the heart and soul of any organisation. The right HR team can help build a positive culture, make employees feel valued, and resolve workplace conflict. However, if things aren't going well in your HR department, problems may spread throughout the organisation.

How do you know if your HR department is doing its job correctly? There is one tried-and-true method: an HR audit.

An HR audit thoroughly examines a human resources team's policies, people, and structure. An unbiased third party typically performs human resource audits, such as a reputable HR consultant. The auditors can look over the entire department, compare your current processes to industry best practices, and identify areas for improvement.

It is not always obvious that you require an HR audit. Here are five indicators that it's time to evaluate your human resources team.

 

1. HR metrics are concerning.

HR should be able to provide critical human capital metrics to the leadership team, such as:

• Employee participation rates

• Turnover of employees

• Recruits' cost-to-hire and time-to-fill

• Absenteeism

• Qualitative data, such as the results of a pulse survey

Trends such as high turnover and absenteeism can sometimes point to deeper underlying issues that require immediate attention. An HR audit can assist in identifying problems and recommending solutions.

If HR cannot provide this information, this is another cause for concern. To track progress, the team may require new technology and processes. HR audits can assist you in determining your HRIS requirements.

 

2. You are worried about your HR leader

HR executives are essential members of the organisation's leadership team. The head of HR provides critical insights to executives, and they play a crucial role in strategy implementation. Finding the right HR leader entails more than selecting someone with the right resume. You also require someone who can back up your goals, mission, and culture.

An HR audit can assist in identifying problems at the top and assisting your HR leaders in finding better ways to support executive leadership. It will also help identify structural and organisational issues that may impede your team's success.

The audit provides an objective evaluation of your HR team's strengths and weaknesses, allowing you to make an informed decision about the next steps.

 

3. HR processes are not keeping up with the new normal 

Hybrid teams, Long Covid, The Great Resignation, we're in the midst of profound disruption, and it's having an unprecedented impact on HR policies. Employers must find new ways to engage and support employees, combat high turnover rates, and capitalise on new opportunities such as remote recruiting.

HR pros are doing their best, but many require assistance from outside sources. An experienced consultant's HR audit can assist in identifying problems that may have arisen during the pandemic and post-pandemic chaos. The audit will then assist in identifying areas where your team can implement current best practices.

 

4. You haven't had an audit in quite some time.

Is everything running smoothly in your HR department? Great! An HR audit provides tangible proof that your team is on the right track. It's beneficial to have that kind of recognition for the team, and it also gives you peace of mind knowing your organisation is structurally sound.

Regular HR audits can also aid in the early detection of problems before they become critical. If you make a few minor changes to your working practices today, you could save yourself a lot of trouble in the future. An HR audit will assist you in identifying areas for improvement and developing a strategy to ensure future success.

 

We all struggle to be objective about our own teams. We miss red flags because we've grown accustomed to seeing them. Or we put forth the effort to repair and improve things without considering whether it is the best use of our time.

A skilled consultant can conduct an external HR audit to get your team back on track and keep your organisation moving in the right direction.

 

Source: Helios HR