HR Audit

Six Reasons to Undertake an HR Audit by Christina Stewart

We recently explained what an HR audit is: What Exactly Is A Human Resource Audit

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This week we’ll run through a few reasons why you might need one. We think of audits as “Elevated Employee Surveys” – just like with an anonymous online employee survey you get details on how your employees feel about their work, but with an audit, you also get a good picture of why they feel that way. Additionally, you get a deep look into how effectively your HR systems and HR processes are functioning. Add on to that recommendations for what steps to take in the deficient areas and you have something significantly more valuable that just an online survey.

Most companies are familiar with the concept of an audit, especially when it comes to the financial aspects of the business. However, conducting an audit of your Human Resources policies and procedures is just as valuable – as we know strong HR functions are bankable. An effective HR audit will not only help you assess the important factors for creating a financially healthy future, it can also provide insights into the qualitative aspects that impact your organization’s culture.

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Six Reasons to Conduct an HR Audit

Here are six ways an audit can provide incredible value for your organization:

1. An HR audit helps ensure compliance with important HR regulations. Staying up to speed on the latest compliance and regulations updates is critical. Whether you’re trying to avoid WorkSafeBC penalties or provide appropriate overtime compensation, an HR audit can help you ensure you’re avoiding any potential fines or penalties.

2. An HR audit helps you stay up to date with the latest employment laws and trends. The business world is changing rapidly, including the laws that govern Human Resources departments. An HR audit can ensure that you’re not only adapting to the employment law trends that are shaping today’s workplace but that you’re also up to date on the general business trends that could impact your organization.

3. An HR audit helps ensure that your employees are being paid fairly. As an employer, you need to know what fair pay should be for your employees. You also need to know how to communicate with employees regarding fair pay and compensation. An HR audit can provide insights into both areas.

4. Accurately classify your employees. As the popularity of freelance work and independent contractors has risen in recent years, so has the ambiguity on how to classify employees. An HR audit can help you determine how an employee should be classified or consider what type of hire you should make.

5. An HR audit can analyze and reduce employee turnover. Employee turnover can be incredibly costly for your organization. Whether you’re looking to capture insights through an effective exit interview or looking for ways to boost morale and improve your company culture, an HR audit can provide insights to help you reduce employee turnover.

6. An HR audit can improve organizational structure and update job descriptions. Whether you’re just starting your business or experiencing rapid growth, an HR audit can help you evaluate and improve the people, processes, and procedures you use to run your business. An employee handbook is a foundational element for businesses just starting out. As your company grows and evolves, an HR audit can help you re-assess job descriptions in the same way you evaluate finances and budgets.

Enhance the Processes & Procedures Impacting Your People

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Whatever specific challenge (or challenges!) you’re facing, an HR audit will help you enhance processes and procedures that are directly impacting your greatest asset—your people. Our team at Praxis Group understands the nuances of BC Labour Laws, the best practices in HR and how it all intersects with culture. We’ll help you understand steps to undertake.

Connect with our team to learn more about our HR audit process and other HR services.

What Exactly is a Human Resource Audit? By Christina Stewart

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Hearing the word ‘audit’ is often enough to cause most of us to break out in a cold sweat. Visions of Governmental officials in dark suits with calculators and grim expressions searching through the deep dark corners of your finances and your life come to mind. And I’m sure that can be true in some cases – but not in the case of an HR Audit. Or at least not in an audit with Praxis.

When we think about the word audit – we get excited! We think of problem solving and we think of answers and we think of executing on your visions – we think of solutions. The whole point to undertaking an audit is to get an objective assessment of your people practices so you can exact some positive change.

An HR Audit is a thorough review of your current human resources function. An audit will review your HR policies, procedures, documentation and systems as well as interview your people. Areas will often be identified that require some kind of enhancement (or possibly outright revamp) – when the HR function is enhanced you’re that much closer to executing on your overall company strategy and your vision.

Call it an audit, an assessment, an analysis, an examination, an evaluation or a review – it all means the same thing: understanding your HR function. A properly executed audit can tell you why your turnover is so high, why you’re having trouble recruiting, why you have so much overtime, sick time or disciplinary situations. An audit can provide your company with insight as to how your Human Resources behaviour is impacting your goals, objectives and bottom line.

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But knowing why is only half of it.

A comprehensive audit will also tell you what to do about it. And reputable audit companies will also lay out all the options for undertaking change. The really good ones will even help you execute on your new HR plan.

If you truly want to know where you stand with your people and want to know how to get from here to where you want to be, then an audit is exactly what you need. No governmental suits or sweating required.