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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 [email protected]
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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