What is an HR audit and why is it important? 

An HR audit is a valuable tool that can help stakeholders understand the

strengths and weaknesses within an organization, specifically within the HR

department’s scope. Human resources is generally a key spot for compliance

missteps, due to the sheer volume of documentation, policy creation and

procedural maintenance that happens in this area of the business. 

Addressing these effectively and preventatively using your strategically

created audit can have a positive “ripple” effect in every area of business,

including critical focuses, such as employee management and operations as a

whole. 

If you’re not sure where to start, check out below the steps of an audit and

the key areas of focus for an effective HR compliance audit. This will serve

as a strong starting point to getting your business compliant and in good

operating order.

1. Employee management 

Your employees are critical assets to your business. Ensuring compliance here

can go a long way toward a happy, healthy, and productive workplace culture.

Questions to ask or areas of focus include: 

• Is there a clearly-defined onboarding process that helps effectively

  integrate team members? 

• Is there a training “tracker” in place to document corporate growth and

  advancement? Is there an employee training plan in place?

• Is there an employee handbook and onboarding documents that are given out?

  Do these adhere to all employment laws and company standards? 

• Are there compensation tiers that have been established? Are all

  compensation levels congruent with the national pay scale? 

• Is there adequate DEI or mandated training documentation (i.e. sexual

  harassment training) being held in a compliant way? 

• Are there consistent employee standards for promotion in a compliant

  way? 

2. Safety and security 

A safe workplace contributes positively to your workplace culture and is

required by law. Implementing ongoing safety and security “checks” into your

HR audit checklist can be a helpful step to maintaining compliance and

employee satisfaction. You can include areas of focus such as: 

• Current health and safety measures upheld in the company 

• References against OSHA’s current standards to ensure congruence and

  compliance

• Documentation around employee complaint procedures 

• Workers comp information, execution, and relevant documentation 

• Information and documentation around state labor laws and compliance 

3. Recordkeeping and admin 

Beyond employee management and compensation, HR professionals are often

required to upkeep specific types of recordkeeping and administrative tasks.

Including these touchpoints in your HR audit checklist can save you a lot of

time later on. 

• Does the company currently keep documentation around key employee benefits

  (such as FMLA, Workers Comp, and PTO?) 

• Does the company have current standards that indicate how long employee

  files are to be stored (and how they are to be managed?) 

• Are all personnel files current? Are they kept in a congruent way?