The main purpose of HR audit is to identify gaps in HR-related areas and improve them. It helps assess whether the HR practices are benefiting or harming the organization. It also goes beyond the typical hiring process and looks into areas like employee compensation, training, employee retention, employee relations, and other practices that affect employees within an organization. Some of the main purposes of HR audit are:
- Ensuring compliance and updating regulations to avoid any potential penalties
- Designing a fair, competitive employee compensation and benefits package
- Staying relevant with the latest employment laws and trends
- Identify reasons for employee turnover to improve retention
- Improve processes, procedures, organizational structures, and job descriptions
- Identify employee grievances and address issues