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HR Audit How an organisation can get Benefits out

of it?

measure & improve your HR compliance and performance

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about the presentation

HR audit helps in assessing the contribution of the human resource processes to the organization and take improvement measures. It is like an regular health check-up which instills a sense of confidence in the management and the HR functions of an organization. It ensures that one’s HR process is functioning effectively, compliant with local laws and is linked to organization’s strategic goals.

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Inspiring Excellence www.verde.co.in

Now on the subject:

HR Audit

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What is HR audit

HR audit is an in-depth analysis of all people related initiatives to

identify strength and areas of improvement

An HR Audit can help to ensure legal compliance while measuring

the effectiveness of HR programs and practices

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Objectives of HR audit

• improve efficiency of HR processes and practices

• determine corrective measures for HR practices that don't address

employee and employer needs and assess compliance with international

standards and global best practices

• state and local regulations

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HR Audit

Measurement & Improvement of

Statutory Compliance

Process Improvement

based on audit findings

Improvement in • Productivity • Employee Satisfaction • Stakeholders’ confidence • Brand image • Customer satisfaction

Unleash your productivity

with HR Audit

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components of HR audit

Mandatory components HR governance system Legal compliance People competence Human resource cost

Optional • Manpower planning & forecasting

• Recruitment, selection, Induction

• Performance management

• Compensation benefits

• Career development & succession planning

• Reward recognition & employee benefits

• Employee exit

• Industrial relations and ethical practices

• Human resource information system

• Occupational health & safety of employee

• Corporate social responsibility

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Four stage HR audit process

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Audit Plan Offsite information

collection Development of

custom built audit protocol based on People Capability Maturity Model

(P-CMM) Selection of audit

team Preparation of audit

plan Communication

1 Onsite Audit Opening Meeting Discussion with top

management Self assessment

(cross functional perspective (sampling)

Interview of different process owners

Process / task observation

Document Audit Closing Meeting

Audit Report Findings are rated through

assessment protocol Finalization of HR rating Finalization of Risk rating

(prioritization) Preparation of

Recommendations in the areas of Strategy, People, Process, Documentation & Infrastructure

Report with strengths and areas of improvement

Issue of Certificate

3 Audit Follow up Submission of

improvement plan by the organisation

Closure of improvement plans and programs

Re-audit after one year

Re issue of certificate with new rating

4 2

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Challenges

Compliance Challenges

Performance Challenges

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• Help to comply legal requirement

• Identify the focus areas for management action

• To improve contribution of the HR function to the achievement of our business objectives.

• HR objectives can be aligned with strategic objective

• Reduce the HR cost

• Contributee in people capacity development

• Performance Appraisal Systems

Benefits

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Role of HR manager in HR audit

• To initiate the process of HR audit

• To make the corrective action plans based on the identified issues

• Periodic checking of the health of the system

• Give input to the top management for business decision making

Role of compliance manager in HR audit

• To ensure statutory compliance • To ensure compliance with

Companies Act, 2013 • Input for CSR planning • Cost benefit analysis in HR

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This is a

knowledge initiative

About the author:

Madhabi is a consultant of Verde Ventures, which provides consulting and advisory services in the field of business management. She worked in manufacturing and service industries in different people functions as an auditor, consultant and trainer. She has expertise in process development, strategic management in the areas of people excellence, sustainability and business excellence. Madhabi is a trainer, consultant and assessor and worked with more than 100 organizations across India. Madhabi is masters in human resource management and presently pursuing doctorate in management. She is a certified Neuro Linguistic programme practioner and trained social impact assessor. She has conducted 100+ assessments in different industries in the areas of HR, legal, social, CSR and sustainability. Her knowledge of industrial relations and labour laws helps her to contribute in the HR audits effectively.

Madhabi can be reached at madhabi.guha@verde.co.in

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What Verde does?

Verde is an international advisory firm involved in the field of Responsible Business, Business Excellence and Risk Management.

1 Assessment

Identifying the gaps in a system against standard(s) and requirement. to meet compliance and facilitate improvement.

2 Consulting

Supporting & handholding organisations to solve their problems and to meet the gaps identified during the assessment or any other audit.

3 Training

Empowering people to perform their duties effectively and efficiently.

4 Assurance

& Certification

Ensuring that a process, product, or service meets relevant technical standards and fulfils relevant requirements.

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Verde services in

People Excellence

• HR Audit

• HRD Climate Survey

• Workplace Stress Management

• Human Resource Process Management

• Performance Management

• Strategic Competency Management

Safety, Health & Environment

People Excellence Food Safety

Social Compliance

Quality & Business Excellence

Information Security