- When was your company’s last HR audit?
Managing a company presents many challenges, regardless of its size, the nature of its activities or its legal status. To ensure its future in the current context, sound management of each of its pillars is necessary and human resources are a must today. The best way then to evaluate human resources management is to conduct an HR AUDIT of your organization.
What is the purpose of an HR audit?
First, the HR audit will provide a true picture of the human resources situation. It will be an opportunity to analyze where the organization stands in terms of its practices, policies and procedures, staffing process, compensation and benefits, occupational health and safety, etc. This step also allows you to analyze the risks related to poor HR management: high rate of absences, employee turnover, workplace accidents, labour relations, etc.
Second, the HR audit aims to offer solutions, either by optimizing the good practices that were identified or by suggesting new ways of doing things. It is a matter of reducing or eliminating the discrepancies with legal requirements that could be detrimental to the success or future of your company.
Finally, it will allow you to evaluate the company at regular intervals since the results of the audit will essentially be your company’s report card.
What are the stages of an audit?
The three phases of an audit are preparation, execution, and correction.
1. Preparation: During this phase, the work context, the reasons for conducting an audit, the topics to cover and the objectives to achieve are identified. These aspects allow you to clarify expectations and to implement the right strategy, according to the preventive or curative approach.
2. Execution: This phase takes place on the audited premises and serves to check in real time the risks raised in the preparation stage. The auditor’s approach is factual, and the information is documented for an in-depth analysis of the results.
It is at this stage that good practices are identified, those to be developed and those to be eliminated due to their unwanted effects on the organization. The execution ends with the development of an action plan.
3. Correction: This closing phase includes a synthesis report in which you identify the behaviours to be reinforced, the management methods to be retained and those to be modified or even eliminated. The action plan is shared with the teams involved and includes specific objectives to reach in the short, medium, and long term.
What are the benefits of HR audits?
The actions taken as a result of the HR audit will be profitable for the organization since they will generate significant savings by reducing absences, improving the work environment, reducing the risk of workplace accidents, and complying with various labour laws.
The improvement of processes also has the significant advantage of saving time.
How often should HR audits be performed?
If we compare the company to the human body, you have two options when it comes to health: doing nothing and reacting when a problem occurs with the curative approach or working upstream with the preventive approach.
- The preventive option is less costly in terms of time and human resources since you avoid absences, departures, sick leaves, or disputes.
What is then the optimal frequency of HR audits? The medical analogy also applies. Like a medical check-up, an annual HR audit allows you to optimize your practices and to detect discrepancies before they escalate.
Is it preferable to have an internal or external audit?
Having an internal audit is always an option. However, in order to conduct a truly thorough analysis, we suggest entrusting this mission to a team of seasoned professionals. Experienced auditors have all the skills and knowledge required to conduct a neutral and effective analysis of your HR practices. You will save time as well as get an objective perspective on your situation.
Remember that the standards for the execution of HR audits are constantly changing, so it is a good idea to consider calling on experts that are qualified to meet these new standards.
At Bedard Human Resources, we can help you with your HR audits. Contact Stéphane Pépin for more information on our HR consulting services. Stéphane can be reached by email at spepin@bedardressources.com.
