The following is the general procedure for performing a human resource audit:

• Identify the audit's kind and scope- The audit team must choose the precise target areas to focus on for evaluation in order to unearth the necessary information. The audit team would like to perform a thorough examination of all the HR practice areas if the company has never audited its HR function or the occurrence of any significant organizational or legal changes. The audit team will also be able to concentrate its evaluation on that single area if the issues are restricted to the sufficiency of a certain process or policy.

• The audit questionnaire should be created- The audit team must devote enough time for creating a document that covers all aspect of the investigation while performing a thorough audit or an audit of a particular activity. In order to assure that the questionnaire is complete, HR should create a list of specific questions.

• Gather the data- The process of actually reviewing particular regions to learn more about the organization and its HR policies is incorporated in the following stage. The members of the audit team will survey the specific areas designated inside the audit's scope using the review poll as a reference.

• Compare the results- The team must assess the audit results extensively by contrasting them with the established HR criteria. This connection will reveal how the review results relate to other like sized businesses, governmental regulations, or reliable internal data. The ratio of full-time employees to HR specialists in the organization, the amount of money spent on HR work relative to total sales, general and regulatory costs, and the cost per new job hired are all examples of average statistics that can be internally benchmarked. The number of days it takes to fill a post, the typical cost of annual employee benefits, and absence rates can all be included in national standard benchmarking.

• Give comments on the outcomes- The audit team's findings and recommendations must be presented to the entity's top management and HR specialists after the audit process is complete. Discoveries are typically condensed to a written report with recommendations arranged in accordance with the risk level assigned to everything (e.g., high, medium, and low). The audit team can create a timeline for the activities that will help determine the request where to address the issues reported based on the results of this most recent investigation. In addition to a conventional report, the audit team should discuss the review's findings with senior management and HR office staff members so that everyone is aware of major changes and that permissions may be granted immediately.

• Establish action plans-Utilizing the facts identified by the audit must actually result in something for the organization. The organization must create activity schedules for carrying out the recommendations made by the review, separating the discoveries into three categories based on their level of significance: high, medium, and low. Organizing a review but failing to follow up on the results significantly increases legal risk.

• Encourage an environment of ongoing progress- To ensure that the organization never stops improving, HR leaders must participate in consistent perception and ongoing improvement of the association's approaches, strategies, and practices after the review is complete. This will ensure that the organization succeeds and maintains its advantage. One way to achieve this is to continuously assess HR frameworks to make sure they are state-of-the-art and have follow-up processes built into each of them.

To ensure that HR techniques and practices are maintained up to date, one strategy is to appoint someone on staff or an expert from outside to monitor legal advancements. Associations can also keep an eye on attrition, complaints filed, hotline issues, review findings and improvements made, and worker overview outcomes to spot trends in their business-related concerns. The decision of where to allocate time, money, and resources for preventive planning later on can be aided by understanding major issues, development zones, or declining issue regions.