How to Design an HRD Audit

Designing a comprehensive human resources department audit includes focusing on three areas: the consistency of the department in its dealings with employees, its compliance with law and the completeness of the work it performs. A good audit also includes an evaluation of the department's management systems and styles, and the department’s development strategies compared against the company’s short- and long-term business goals.


Put together a committee for the audit overview. Assign strategic members to the committee outside of the human resources department from middle management positions within the committee. Assign the authority to this committee to develop and proceed with the design and implementation of the HR audit.


Establish the scope of the audit. This is the starting point to determine the breadth of the audit and the areas that need to be covered in the audit. Determine if this will include the strategic role of the human resources department in the company, whether the audit will focus on HR compliance or include an evaluation of human resource management and resource systems.


Prepare for the audit. Develop a questionnaire for the areas under scrutiny. For example, an audit of the human resource management systems and procedures might ask about the strengths of the job design, how well the department handles recruitment and selection, and its timeliness and ability to respond to staffing needs.


List the methods of the audit. Determine whether to set up an internal panel to conduct the audit, or decide on bringing in an outside auditing agency. Some of the methods for conducting an HR audit include setting and using standards to evaluate HR department activity, use the management-by-objective approach by comparing the objectives with actual results or use elements within the department to ensure legal compliance, such as the deadlines for completing the right work documentation.


Set the timetable for the audit. Set the length of the audit, when it will be finished and the expected delivery of the results.


Assign the performance measures. Determine the areas of the HR department’s activities that can be measured, such as the compliance sector -- and list the measurements for those areas.


Identify the expected outcomes of the audit. This could include such things as the cost-effectiveness of recruitment. Another outcome may define whether the HR department meets performance targets or its strategies to retain good employees.


Develop an implementation plan. Create a timeline for when the audit will begin, how long it should take and those involved in the process.