The Ultimate HR Audit Checklist for 2023
What Is an HR Audit?
An HR audit is an internal review of a company’s human resources practices and procedures. It is conducted to ensure that the company is compliant with local, state, and federal regulations. It also helps a company identify areas where it is failing to meet its goals and targets, as well as areas of strength.
Why Is an HR Audit Important?
An HR audit is an important part of a company’s risk management program. It helps companies identify potential areas of liability, such as non-compliance with laws and regulations, and helps them take steps to prevent such problems. An HR audit also helps a company stay current on changes in the legal landscape and can identify areas of opportunity to improve processes and employee engagement.
The Ultimate HR Audit Checklist
An HR audit should cover a range of topics, including:
- Compensation and benefits
- Employee record-keeping
- Recruiting and hiring
- Performance reviews and appraisals
- Employee handbook and policies
- Employee relations
- Safety and health
- Training and development
- Workplace diversity
Sample HR Audit Checklists
Compensation and Benefits
- Are employee salaries and wages competitive in the market?
- Are employee benefits compliant with applicable laws?
- Are the appropriate payroll taxes being withheld and paid?
- Are employee salaries and wages being paid in a timely manner?
- Are employee benefits being administered correctly?
Employee Record-Keeping
- Are employee records being kept in accordance with local and federal laws?
- Are employee records adequately protected from unauthorized access?
- Are employee records being stored securely and for the appropriate amount of time?
- Are employee records being updated in a timely manner?
Recruiting and Hiring
- Are job postings compliant with applicable laws?
- Are job applications compliant with applicable laws?
- Are background checks being conducted in compliance with applicable laws?
- Are interviews being conducted in accordance with applicable laws?
- Are job offers compliant with applicable laws?
Conclusion
An HR audit is an essential part of any company’s risk management program. It helps ensure compliance with laws and regulations, as well as identify areas of opportunity for improvement. The above checklist is a good starting point for conducting an HR audit, but it is important to work with an experienced HR professional to ensure that all aspects of the audit are conducted properly.