A simple definition of an audit could be that it is a continuous, objective assessment of the systems that are in place. The aim of this assessment is to check if the processes and policies are compliant with required standards or not. So, what does auditing and administrating human resources policies entail?

Auditing and administrating human resources policies means continuously evaluating the department’s adherence to policy guidelines in relation to all the work it does. These include, but are not limited to areas such as

o   compensation

o   corrective action including termination

o   hiring

o   organizational development

o   orientation and training

o   performance evaluation

o   personnel policies

o   recordkeeping, and

o   All elements of safety.

Purposes

HR audits can be done either internally (by the HR itself or other employees in other departments within the organization), or it could be done by an external, independent auditing agency. Whichever of these methods is adapted, the aim is the same. Auditing and administrating human resources policies should show the following:

o   That the management is complying with the policies in vis-à-vis its relationship with the staff;

o   That the HR policies the organization is practicing are in accordance with prescribed state and federal laws and regulations, such as Equal Employment Opportunity (EEO), Family and Medical Leave Act (FMLA), Occupational Safety and Health Administration (OSHA), Americans with Disabilities Act (ADA), Immigration Reform and Control Act (IRCA), etc.;

o   Suggest ways by which there is improved performance by HR and other employees in meeting the organization’s objectives, and

o   Suggest methods by which the functions of the HR department get elevated to the next level.

 

 

Methods of auditing

Auditing and administrating human resources policies should ideally consist of the following:

o   Making a checklist of all the points that pertain to the audit, such as what, how, whom, and at what frequency

o   Describing the above

o   Gain clear understanding of the audit, its nature, method and purpose

o   Ensure appropriateness (sync between management and HR) of auditing and administrating human resources policies.

References:

http://www.cooperativegrocer.coop/articles/2012-08-07/why-human-resources-audit

http://www.ipma-hr.org/sites/default/files/pdf/hrcenter/HR%20Audit.pdf