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Four steps to complete an HR audit that will ensure your policies and procedures comply with recent labour law changes

by , 12 February 2015
Conducting an HR audit is the best way to make sure your policies, procedures and practices are in line with all the changes to current labour law. And, as a result, avoid penalties for non-compliance.

But do you even know where to start?

Don't fret. Here are the four steps you must follow to conduct an HR audit so you can guarantee your company policies and procedures are legally compliant.

With these four steps you'll always conduct the perfect HR audit

Step 1: Be clear on what you want to audit
Many business owners make the mistake of launching into an audit without a clear idea of what they'll be auditing.
You need to select the audit scope and have a clear understanding of what you'll be trying to find out.
For example, you want to check all personnel files to find out if they contain all the documents related to employment contracts and current remuneration packages.
Step 2: Decide who'll do the audit
In this article, we explain that the five people who can conduct HR audits are:
  • Employees in your HR department;
  • Internal company auditors;
  • External HR experts;
  • External auditors; and
  • The Department of Labour.
At this stage, you also need to consider these factors:
  • The amount of time the audit is likely to take;
  • The available resources you have to do the audit;
  • The likely disruption to your ability to provide an HR service; and
  • The level of expertise you need to conduct the audit correctly.
That's not all. Keep reading to find the other two steps of 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.

Discover 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!
Step 3: Tell the relevant parties about the audit
Doing an audit is about team work. So make sure you tell those the audit will affect about it so they can help you.
They need to know:
  • Who'll take part in the audit and who needs to provide information for the audit;
  • When the audit will take place, including the start date and the expected end date;
  • What area the audit will cover; and
  • Where the audit activity will actually take place.
Step 4: Gather your information
Here, you need to:
  • Ask for documents you need for your HR audit. And then record all these in your audit register.
  • Set up meetings and interviews that you need to conduct to gather information for the audit. Remember to take good interview and meeting notes and record them on your audit register.
  • Observe employees or managers as they carry out the elements you're auditing. If, for example, you're auditing management practices like performance reviews, disciplinary hearings or interviews, this aspect is important.
Overall, there are six more steps you need to take to complete an HR audit. Find out what they are in The HR Audit Electronic Report so you can make sure your policies and procedures are in line with recent labour law changes.

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