The HR audit as an improvement tool Regardless of the type of company or the size of the HR department, the HR audit is a simple but comprehensive tool to analyze and improve its effectiveness as a function. The audit consists of four main steps: 1) Define the desired HR practices for your organization 2) Evaluate current practices against the established criterion 3) Analyze the results 4) Set improvement objectives and take action This simple four-step approach can be repeated as the annual planning and goal-setting process occurs within your company. Progress can be measured against objectives and a cycle of continuous improvement naturally develops. Purpose(s) of an Audit The audit can serve any of the following purposes: Clarify the desired HR work practices and roles within the organization (HR department, line managers). Establish a baseline for future improvement. Evaluate current effectiveness. Standardize practices across multiple sites within a division or company. Assess the current knowledge and skills required of HR professionals. Improve the performance levels of key customers within the organization. The Audit Process Step One: Defining Audit Statements Defining the desired HR practices can be done in a variety of ways. A good place to start is to take some time and think about the legal requirements and programs your department needs to administer. Simply listing them is a good first step. Next, consider your areas of responsibility and the traditional HR practices covered by your function – these may include human resource planning, staffing, performance management, employee relations, compensation and benefits, training and development, safety and wellbeing. , Employee Surveys and Communications. Finally, other areas to consider are the corporate initiatives that the HR function may be called upon to support, i.e. internal customer requirements. The specifics are unique to your company, but examples might include supporting a total quality management initiative, a team-based work system, etc. With this list in hand, you can write a statement about each major practice you want to define. Typically, they are expressed in the present tense and in a positive way. The following examples illustrate these characteristics: The staffing process is documented so that the responsibility of each person involved in the process is clear and understood. Performance evaluations are completed for each employee in the organization. There is a train the trainer program for each major training program within the company. New employees complete a new hire orientation program covering key company policies and procedures within their first 30 days on the job. There is a problem-solving process that is well understood and used by employees. As you can see, definitions can be as complete or detailed as the developer wishes.