Human Resources Audit and Its Key Elements

What Is an HR Audit?

Managing human resources (HR) is an essential part of any company’s operations. Unless appropriate tools for communicating with staff members are utilized, a firm is unlikely to succeed in its target market due to low motivation rates and, thus, poor performance. To ensure that the tools used by the HR department are sensible, a company needs to perform an HR audit. The phenomenon can be described as the process of evaluating the efficacy of an HR department’s activities and their effect on employees’ motivation and the results that they deliver (Ochomna 16).

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How Will an Organization Benefit from the HR Audit?

Seeing that the HR audit allows for a systemic measurement of the HR department’s performance, a company will gain a deeper insight into the reasons why the HR strategies used by the HR department have a particular effect on the firm’s employees. If the outcomes of the approaches used by the HR department are positive, further avenues for making employees even more motivated and successful in their performance can be identified with the help of the HR audit. If the outcomes are negative, the reason for their inefficiency can be located, and the steps for improving the said HR approaches can be identified. As a result, a company that has incorporated the HR audit in its system of performance control can enhance the quality of a firm’s performance, therefore, leading to a significant rise in the levels of customer loyalty and retention (Andrews 4). Used to analyze key business experiences and crucial information to strategize the further stages of a company’s development, the HR audit must be recognized as an essential part of the corporate control system.

The Code of Work for HR Audit

Although for private companies, the choice of HR audit strategies depends mostly on the values and standards that the firm in question strives to uphold, there are universal ideas that are generally included in the list of HR audit elements worldwide. For instance, the assessment of HR management and leadership strategies should be deemed as a crucial component of the audit since it helps define the efficacy of the HR framework. Furthermore, the problems in the current approach toward managing staff members and especially handling communication issues within a workplace can be located and resolved. The specified issue is especially important in the realm of contemporary business, were exerting control over digital processes is fraught with numerous challenges. Furthermore, the issue of security needs to be brought up when it comes to performing financial operations in the digital environment. Thus, the introduction of strategies aimed at reducing the vulnerability of an organization in the digital realm should be viewed as a necessity.

Key Deliverables for HR Audit

As a rule, the essential elements that must be included in the HR audit are the assessment of the occupational health and safety framework and standards, evaluation of the security system and information management approach, an analysis of the performance counseling strategy, the assessment of the staff’s motivation levels, and the analysis of the policies regulating the workplace environment (Kulchitskaya et al. 2). Benchmarking should also be regarded as an important constituent of the HR audit framework since it helps define whether an organization has succeeded in improving its HR system and managing its staff members. Consequently, further opportunities for updating corporate leadership and management strategies, as well as enhancing loyalty and motivation levels among staff members, can be pursued.

Works Cited

Andrews, Chris. “Fundamental Issues with HR Auditing.” ePublications, 2017, Web.

Kulchitskaya, Elena V., et al. “Cognitive and Motivational Aspects of HR Audit Implementation in an Organization.” Indian Journal of Science and Technology, vol. 9, no. 40, 2016, 1-7.

Ochomna, Ernest. Procurement and Supply Chain Management: Emerging Concepts, Strategies and Challenges. AuthorHouse, 2015.

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StudyCorgi. (2020, December 10). Human Resources Audit and Its Key Elements. Retrieved from https://studycorgi.com/human-resources-audit-and-its-key-elements/

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StudyCorgi. 2020. "Human Resources Audit and Its Key Elements." December 10, 2020. https://studycorgi.com/human-resources-audit-and-its-key-elements/.

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