HR Audits

How well is your business complying with current labour laws, guidelines & regulations? An HR audit can answer that question for you. 

The purpose of HR audits is to assess the compliance of your human resources policies and procedures so that a diagnosis of issues is conducted before real problems occur and help you find the right solutions. 

In addition to defining risks, HR compliance can be used to identify what you are doing right, help you improve inefficiencies, and reduce costs. 

An HR compliance audit can help you see how HR can better support your overall goals to build a better business.

An HR compliance audit generally consists of

two main parts:

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An evaluation of the organization's operational HR policies, practices and processes with a focus on key HR department delivery areas (e.g., recruiting—both internal and external, employee retention, compensation, employee benefits, performance management, employee relations, training and development, etc.).

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A review of current HR indicators (e.g., number of unfilled positions, the time it takes to fill a new position, turnover, employee satisfaction, internal grievances filed, number of legal complaints, absenteeism rates, etc.).

Purpose of an HR Audit:

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Ensuring compliance of the company with labour laws

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Helping the HR Department understand how to improve itself

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Reviewing and ensuring proper resource allocation of human resources

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To help avoid HR headaches, labour violations and penalties

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Being an act “due diligence” for potential investors and stakeholders of a company

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A basis for improvement in the future

Types of Audits

An HR audit can be structured to be either comprehensive or specifically focused, within the constraints of time, budgets and staff. There are several types of audits, and each is designed to accomplish different objectives. Some of the more common types are:

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Compliance

Focuses on how well the organization is complying with current government labour laws and regulations.

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Best Practices

Helps the organization maintain or improve a competitive advantage by comparing its practices with those of companies identified as having exceptional HR practices.

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Strategic

Focuses on strengths and weaknesses of systems and processes to determine whether they align with the HR department’s and the organization’s strategic plan.

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Function-Specific

Focuses on a specific area in the HR function (e.g., payroll, performance management, records retention).

During an HR Audit, our consultants conduct a thorough well-rounded review and analysis of the following HR areas:

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Legal Compliance

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Record Keeping

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Compensation/Pay Equity

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Employee Relations

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Recruitment and Hiring

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Employee Engagement/Development

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Benefits

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Performance Appraisal Systems/Management

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Terminations

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Communication

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Policies and Procedures/Employee Handbook

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Technology & Information Systems

Upon completion of the audit, clients receive a detailed report followed by an in-person debriefing of the consultant’s findings and recommendations. Should the client request assistance with implementing any recommendations, Khano HR Solutions is available to assist every step of the way.