Your company’s human resources department helps to organize your entire workforce. In order for your company to operate effectively, all aspects of employee management need to be conducted correctly from the time of onboarding until the time that an employee leaves your company. To optimize your HR department’s overall performance and to mitigate your company’s risk of liability related to human resources error, it’s highly advisable to periodically conduct a controlled audit of the HR department’s recordkeeping and operations.

Get Help from a Third-Party

It’s beneficial to have a staff in your HR department perform self-evaluations as a part of the auditing process. However, it’s advantageous to bring in a third party to direct HR audits. Source: Outsourcing your audit will bring in specialized expertise that your internal staff won’t necessarily have. Moreover, it’s helpful to get unbiased feedback from an outside source who can be completely objective in their evaluation.

HR Audit Elements

Application screening, personnel records management, benefits administration, workers compensation compliance, performance reviews, and expense monitoring are all examples of key human resources functions that can create serious problems when not followed correctly. Thorough HR audits should address of all of these activities to evaluate compliance with your company’s internal policies as well as federal and state guidelines.