HR Audit Activity

You are hired to replace the previous HR manager who left the company 6 months ago at a company of 150 employees. The company leadership has tasked you with discovering the status of the HR department and priorities the company should take.
Research and state the purpose of at least two types of HR Audits.
Develop and provide an HR Audit form appropriate for this company size.
Develop and list a process for conducting an HR audit.
Provide how the results of the HR will be conveyed to management.

Full Answer Section

         
    • Relevance to New HR Manager: For a company with a 6-month HR vacancy, a compliance audit is critically important. Without consistent oversight, policies and practices might have drifted out of compliance, potentially exposing the company to legal risks, fines, and lawsuits. This audit helps identify immediate legal vulnerabilities that need urgent attention.
  1. Strategic Audit:

    • Purpose: A strategic audit assesses whether HR programs and policies are aligned with the overall business objectives and strategic goals of the organization. It evaluates the effectiveness of HR in supporting the company's mission, vision, and long-term success. It looks at how HR contributes to talent acquisition, employee development, retention, performance management, and organizational culture in a way that directly impacts business outcomes.
    • Relevance to New HR Manager: This audit helps the new HR manager understand how HR can move beyond transactional activities to become a true strategic partner. It identifies areas where HR can add significant value to the company's growth, profitability, and employee engagement, helping to prioritize initiatives that directly support the business strategy.

HR Audit Form for a 150-Employee Company

Given the company size, this audit form is designed to be comprehensive yet practical, focusing on key compliance and operational areas.

Company Name: [Your Company Name] Date of Audit: [Date] Auditor: [Your Name/Department]

I. HR Department Operations & Strategy

| Area of Review | Question / Item | Status (Compliant/Needs Work/Not Applicable) | Notes/Action Required | | I. Core Operations |

Sample Answer

       

The challenge of stepping into an HR role after a 6-month vacancy at a 150-employee company is significant. The immediate priority is to assess the current state of HR functions, identify gaps, and establish a clear roadmap for improvement. An HR audit is the perfect tool for this.

Purpose of HR Audits

An HR audit is a systematic and comprehensive review of an organization's human resources policies, procedures, documentation, and systems. Its primary purpose is to identify strengths, weaknesses, areas of non-compliance, and opportunities for improvement. There are various types of HR audits, each with a specific focus.

  1. Compliance Audit:

    • Purpose: The primary purpose of a compliance audit is to ensure that the organization's HR practices adhere to all relevant federal, state, and local employment laws and regulations. This includes laws related to equal employment opportunity (EEO), wages and hours (e.g., FLSA), workplace safety (OSHA), employee benefits (ERISA), immigration (I-9 compliance), and more.