As with any audit, it takes a look at just what you are doing a little more closely. In this case, it measures the health of current HR practices. An HR audit will help you identify deficiencies and provide direction in the following subjects: employment practices, employment policies, employment related documentations, employment law compliance.
Bottom line: an internal HR audit is an opportunity to save the company money and avoid problems they may otherwise face. At the end of the day, an audit should help you to develop more consistent policies, treat employees more fairly, and in return the employees become more productive.
When it comes to an audit, there are two main areas of focus- compliance and best practices. Compliance looks at the legal aspects of HR and includes areas such as missing, outdated, or conflicting policies or inconsistencies between policy and practice. The practices pays attention to what is (and isn’t) working for the company including the current processes (on issues such as recruiting, discipline or terminations) and procedures (on issues such as performance or evaluations).
To get started, you will need to develop an audit team. This includes key management personnel. You want people who can give you clear input of what exactly is going on. Feedback from non-management employees is helpful, but they should not be part of a formal ‘team.’