HR audit is a deep dive into a company’s HR processes to check how effective they are and whether they comply with regulations and internal policies.
Think of it as a financial audit but for HR. Specialists review everything — from hiring and training to employee motivation and compliance — to see what’s working well and what needs improvement.
An HR audit can uncover hidden issues, like a lack of transparency in promotion policies or dissatisfaction with performance feedback. For example, if employees feel undervalued, HR might revamp the performance review system to ensure regular and meaningful evaluations.
It also helps align HR processes with the company’s overall strategy. If the business focuses on innovation, for instance, HR should prioritize attracting and developing employees with creative problem-solving skills.
Ultimately, an HR audit helps identify weak spots and offers actionable solutions to improve the work of both the HR department and the company as a whole.