Benefits of an HR Audit

by Carol Nibley
How do busy small-business owners stay compliant with the ever-changing regulatory landscape while delivering a product and service, hiring and training great employees, and adding to the bottom line? Perhaps you hope to “stay under the radar” or simply don’t think you have the time or resources to be fully compliant. Consider the costs of an investigation by the Department of Labor or an employee-filed lawsuit claiming an unfair employment practice. Before external forces prompt a review of your practices, consider a regular audit of them yourself.

What is an HR audit? Much like an annual physical examination, an HR audit can help ensure effective employee management practices and compliance with government regulations.

Besides reducing legal exposure, an effective audit may also illuminate cost-saving activities. Consider the implications of implementing a safety program and the potential thousands of dollars saved. Perhaps measuring the effectiveness of a recruiting strategy may result in higher yield and lower cost. An audit may also reveal communication inhibitors among departments or duplication of effort that, once fixed, will yield a more positive work environment or save resources.

While a thorough and professionally conducted audit is definitely recommended from time to time to make sure important practices aren’t overlooked, many tools are available to those who prefer to do a self-audit of their employee practices. Usually in a checklist format, an HR audit will review the company’s HR strategy, policies, and practices.

Copy and paste these links for more information and examples of audit checklists:

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