An HR audit is used to review HR activities to identify issues related to policies, practices, regulations, compliance, employee issues, and other HR focus areas. The primary need for an HR audit arises from an organization’s interest in connecting HR strategies to employee working lives and business performance. Additionally, HR audit is also needed to ensure that the policies, procedures, documentation, and personal records are regularly maintained and updated.
Overall, an HR audit is necessary to understand where a company stands regarding employee legislation, practices, and policies to facilitate decision-making for reaching where the organizations must be in terms of the above.