Human Resources Audit or HR audit refers to complete evaluation of the current HR strategies and structures within an organization in the context of long term business goals of the firm. An HR audit is an integral part of a company’s personnel management. It validates the company’s compliance with legal rules and obligation necessary for its smooth running and conducting day to day affairs.
Though most companies and business organizations are well-versed with the need of HR Audit, yet they restrain from conducting such audit of their firm. The primary challenge before the owner is the HR audit’s extensive coverage, which required a lot of time and manpower.
It is for this very reason, many entrepreneurs and owners don’t give their nod for routine HR audit. But an independent HR audit by a professional can be easily conducted with limited money, resources and time frame.
A regular HR audit helps an organization in many ways. We already learnt many of them above but the major benefit that we derive from HR audit is its ability to act as a moral check on the company’s staff. In a way, it promotes healthier relationship between the staff and owners ultimately resulting in more success of the firm.
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No doubt, the success and longevity of any company ultimately depends upon the caliber of its staff. While most owners solely focus on reducing their cost of operation and enhancing profit, HR audit at the same time looks into the intricacies of how to keep the employer-employee relationship at optimum level for long-run triumph of the firm.
It is always advisable to go for an independent HR audit by a freelance HR professional. Internal HR audit is certainly not that much reliable and accurate. Also an independent HR audit report, signed by a reputed HR consultant acts a valid proof your company’s compliance with legal obligation as per the law of the land.
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