Human Resource Audit and Review

With economic pressures and business imperatives, now could be the time to consider a HR Audit.

With people and employment costs accounting between a range of forty and eighty percent of business expenditure, human capital is now acknowledged as one of the most important assets of an organisation.

In fact while many organisations acknowledge this in their mission statements HR professionals can be restricted in their ability to support the organisation’s growth due to the ‘noise’ of processes and systems that are purely transactional and administrative. Further, Human Resource groups are constantly under pressure to “do more with less”.

A HRM Advisory Human Resource (HR) Audit objectively collects and evaluates information about an organisation’s HR systems, processes and policies to determine the overall efficiency, effectiveness and economy of people management in the organisation.

A Human Resource Audit:
> Leads to recommendations which address whether the organisation’s HR activities are being undertaken effectively, efficiently, and economically
> Is a method for facilitating alignment between organisational goals and HR outcomes
> Can be fully integrated with the organisation’s internal audit program, given that it follows Australian Auditing Standards
> Is a way of integrating a review of risk management, compliance and improvement within HR
> Is a forward looking activity, focussing on adding value, rather than extensively sampling
historical transactions.

The audit may encompass all or some of the activity areas within HR. The critical HR issues may come from:
> The alignment of the HR objectives (issue, priority, timing) with the corporate plan
> Attraction, recruitment and retention
> Workforce planning
> Learning and development
> Remuneration planning and delivery (inc benefit packages, salary packaging etc)
> Performance management
> HR information and reporting capability
> Change management
> Industrial relations
> The structure of HR (centralised, decentralised, degree of integration with line management etc).