For many business owners, just seeing the word “audit” may incite panic. While many employers fear the thought of being audited, the auditing process can be incredibly beneficial for your business. Here are five ways an HR audit can benefit your business.
- Identifying Critical Issues
At the simplest level, the purpose of an audit is to identify any and all trouble spots in your business. While your employees do their best to work efficiently at the micro-level everyday, it is necessary for every business to conduct an audit at the macro-level for a top-to-bottom assessment of the quality of all operations.
If you’re not sure what facets of your HR department you should be evaluating, this article offers five HR metrics you need to assess.
- Checking for Compliance
Due to the ever-changing nature of modern legislation, ensuring that your business is in compliance with new laws is more important than ever.
By conducting an audit, you can compare the requirements of current legislation with your current HR strategies and determine whether or not your organization is keeping up-to-date with its policies.
Whether it is the Grand Bargain Act, the Equal Pay Act, or any other new legislation that should arise, conducting an audit could be the one action that saves your company the headache that accompanies falling out of compliance.
- Encouraging Accountability
Employee accountability is vital for the operations of any business, but this quality can be difficult to develop in your employees.
When each member of your staff knows that their work will be meticulously evaluated, they may be more likely to be intentional about their work. Conducting an HR audit is a reminder to your employees that their work does not go unnoticed.
If an audit leaves you wracking your brain for more ways to encourage employee accountability, check out this article for more HR strategies to increase this important quality.
- Evaluating the Level of Organization
Are you even able to quickly and efficiently conduct an audit? Completing this process may open your eyes to a lack of organization in your HR department.
If auditing your HR department entails sifting through mountains of disorganized paperwork and indecipherable handwriting, this may be your cue to consider a more organized method of human resources management.
Check out this article for how to make an informed decision about HR software and raise your caliber of organization.
- Highlighting Business Strengths
While an audit may seem like an endless exercise in identifying problems, it can also be an opportunity to discover what is working well in your group’s operations.
When you take the time to evaluate all of your HR professionals’ actions, you may be delighted to discover that their practices are efficient and beneficial to your business practices.
If this is the case, don’t take it for granted! Be sure to commend those employees for what they do well and brainstorm ways in which these strategies could be implemented elsewhere in your company for more holistic improvement.
Conducting an HR audit is like taking a white glove to the surface of your business: it may make you nervous, but it’s one of the best ways to determine whether or not you have critical issues to address. If your audit leaves your HR department in need of an overhaul, contact the HR experts at Commonwealth Payroll & HR. Call us today at 877-245-1159 for help approaching the trouble spots in your business.