Human Resources Audit:
A Human Resources Audit (or HR Audit) is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to assess compliance with ever-changing rules and regulations. An Audit involves systematically reviewing all aspects of human resources, usually in a checklist fashion.
1. Ensuring the effective utilization of the organization’s human resources
2. Reviewing compliance in relation to administration of the organization
3. Instilling a sense of confidence in management and the human resources function
4. Maintaining or enhancing the organization and the department’s reputation in the community
5. Performing “due diligence” review for shareholders or potential investors/owners
6. Establishing a baseline for future improvement for the function
A properly executed Audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems. Some of the steps to conduct such a review include:
8 steps of HR Audit process include:
- Analyzing Hiring and Onboarding
- Analyzing Benefits
- Analyzing Compensation
- Analyzing Performance evaluation process
- Analyzing Termination process and exit interviews
- Analyzing Job descriptions
- Analyzing Form review
- Personnel file review
Analyzing Competency Mapping:
The purpose of a Competency Mapping is to recognize strengths and identify any needs for improvement in the human resources function. Cometency Mapping also consider the technical , managerial, Human, conceptual competencies to perform well in any business operations.
Analyzing and Mapping competencies also cosiders:
- Communication skill.
- Leadership capacity.
- Customer service.
- Results orientation.
- Problem solving ability.
- Definition of competencies:
Technical or Functional Competencies—These are the knowledge, attitude, and skills-related to technical or functional expertize required to perform a role.
Managerial Competencies—These are the knowledge, attitude, and skills required to plan, organize, mobilize, and utilize resources.
Human Competencies—These are the knowledge, attitude, and skills required to motivate, utilize, and develop human resources.
Conceptual Competencies—These are the knowledge, attitude, and skills to visualize the invisible, i.e., the thinking at abstract levels and use of the thinking to plan future business.
10 steps of Assessment process:
- Document verification – Personal file, Payroll data, benefits
- Self assessments – preformanc assessment form fill up.
- 360o assessments – Interviewing Senior, Junior, Peer and Customer
- Performance record assessment – Last 3 years performance data analysis
- Award punishment assessment – Award punishment data review
- Pay structure assessment – Pay structure analysis according to job load & industry average
- KSAP – Knowledge, Skill, Ability & Performance data analysis & scoring
- Competency Frame work: Competency comparison according to Frame work
- Recommendation for development
- Assessment report submission