A human resources audit is a process where you look into all aspects of your HR department. It allows you to see strengths and weaknesses in your HR system. And most importantly, helps you make sure all your all policies, procedures and management practices are in line with labour laws - especially with all the recent changes that have taken place.
While an HR audit is important, some employers don't know when to conduct it and are at risk of huge fines from the DoL. If, for example, the DoL finds that your recruitment doesn't comply with the EE Act, it could charge you fines of up to R2.7 million.
If you're one of these employers, simply take the quiz below. It will show you if you need to conduct an HR audit...
Should you do an HR audit? This quiz holds the answer
Did your company merge with another company?
: Did you take over another company or absorb it?
Did you recently have a major change (e.g. restructuring) or are you likely to experience it in the near future?
Did your company recently introduce major changes to operating procedures or methods?
Do you have a new HR manager?
Has it been two years or more since your last HR audit
Has another audit source (i.e. company audit, department of labour audit, expert assessment, etc.) found high risk areas in your HR department?
Have you received complaints or grievances about your company policy, procedure or management practice?
Has the DoL implemented new labour laws?
Are there any new changes to existing labour legislation?
If you answered 'yes' to any of the questions, you must conduct an HR audit, say the experts behind the Practical Guide to Human Resources Management.
Now the question is: What must you cover when you conduct your HR audit?
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Ensure you're in line with employment laws by carrying out regular HR audits
An internal human resource audit allows you to objectively examine all your HR policies, procedures and practices in your company.
how you can conduct your own HR audit by using the HR Audit Electronic Report
so you can make sure your procedures and practices are legally compliant!
Cover these three areas when you do an HR audit
Your HR audit must cover:
1. Company policies and procedures
Here, you'll get to find out if your policies and procedures are in line with relevant laws.
2. Personnel documentation
In this area, look to see if you have all the information the law requires in your employee personnel files and if you keep relevant training records.
3. Management practices
Here, you'll see if, for example, the way you conduct performance reviews or disciplinary hearings is fair and complies with legal requirements.
When it comes to doing an HR audit, always remember this…
The key to conducting an HR audit is to have an in-depth knowledge of HR and high-level expertise in actually doing HR. A solid knowledge of current labour laws is also important.
To get a list of the five parties you must include when you perform an HR audit, check out the HR Audit Electronic Report.
It also contains a step-by-step action plan for conducting an HR audit.
Now that you know when to conduct an HR audit, comply so you can avoid hefty fines.