The HR audit tool identifies various areas within HR where there is a need for focused attention.
It highlights necessary steps that should be taken to mitigate potential risks.
It is also a useful tool for identifying current HR risks so that it informs an HR intervention which deals with these problem areas with a view to ensuring that the business receives zero findings when going through a formal HR audit.
Performing an HR audit is important in identifying how the business is doing in terms of its overall HR practices and whether these are, in any way infringing on the rules of the labour relations act as well as the basic conditions of employment Act.
Audits help mitigate the risk of being liable for what is deemed “unfair employment practices” or governance risks. HR audits are a proactive way to minimize the costs associated with such compliance issues and creates a platform for change.
HR audits assist in accomplishing many objectives, such as ensuring compliance to relevant legislation, improving HR governance in terms of reporting, documentation, record keeping,etc, technology practices and identifying what can be streamlined to provide effective value to business.
It also introduces a process of uniformity and consistency in the way in which HR practices are implemented across the group of companies. It helps to identify strengths and weaknesses in HR, IR, Learning and Development, Reward and Remuneration and other employment practices.
The HR audit tool is a dipstick that allows an organisation to gauge its HR effectiveness levels.
The range of maturity and effectiveness of HR is measured on a 3 tier rating scale and is configured as follows:
Basic HR practices in place
Moderate HR practice in place
Advanced to best practice HR
This becomes a valuable dashboard against which the HR department can plan its overall improvement strategy and journey, tracking its progress against a set of key criteria.