As an employer, a proactive HR audit is one of the best investments you can make. By taking a hands-on approach to your human resources function, you can ensure your business remains compliant with ever-changing employment legislation, get the most out of your workforce, and avoid costly mistakes.
As a leading HR consultancy, we view our clients’ HR functions as a strategic asset. We offer commercially focused, pragmatic advice, becoming an extension of your workforce and an integral part of your team.
What Is An HR Audit?
An HR audit is essentially a thorough review of the systems that manage your most valuable asset – your workforce.
Depending on the scope of your HR audit, our expert consultants might review:
- Your HR documentation, including your contracts of employment, employee handbooks, and policy documents.
- Your recruitment documentation, including job descriptions, offer letters, new starter administration, and induction effectiveness.
- Your pay & benefits structure, such as pension obligations and holiday entitlement calculations.
- Performance and employee relations policies, including your appraisal systems, training records, and crucial procedures, such as disciplinary and grievance procedures.
Do You Need An HR Audit?
All UK employers, regardless of their size, are subject to a range of legal obligations. Failing to comply with these legal duties can result in serious issues, including tribunal claims. As a result, all businesses should incorporate HR audits into their HR function.
Just a few examples of how an HR audit can help your business include:
• Ensuring Legal Compliance
The risks of non-compliance with employment legislation are higher than ever. By taking a proactive as opposed to reactive approach to your role as an employer, you can significantly mitigate the risks and avoid the reputational and financial consequences of a breach. Our consultants are experts in HR and employment law issues and will spot and address any potential problems before they can escalate.
When undertaking your HR audit, our HR consultants might check:
- That your contracts of employment and employee handbooks are legally compliant, up to date, and reflect the realities of your current working practices, such as remote or hybrid working.
- That your grievance and disciplinary procedures comply with the law and best practice. By putting legally compliant processes in place, you will ensure that your management team understands their duties and obligations when dealing with employee issues. You gain peace of mind that your internal policies are clear, fair, and consistently applied, thereby mitigating a leading cause of unfair dismissal claims.
- That you are correctly managing crucial employee matters, such as annual leave, sick pay, and parental leave.
- That your performance management processed are robust, objective, and fair.
• Boosting Employee Recruitment And Retention
An effective HR audit not only ensures legal compliance, but it can also maximise employee recruitment and retention. By attracting and maintaining the very best talent, you can give your business a competitive edge and take your organisation to the next level.
Effective HR policies encourage fairness and consistency and avoid potentially problematic issues, such as inconsistent pay reviews or working arrangements, which can erode trust and impact employee retention. Further, when employees have a positive experience of working for our organisation, they are more likely to recommend that their friends and family apply for any job openings.
How Often Should You Have An HR Audit?
An HR audit is not a one-off ‘tick-box’ exercise. It is an ongoing process that changes as your business develops, and the employment law landscape evolves.
How often you should have an HR audit depends on a number of factors, including the nature and size of your business, the number of employees you employ, and any specific risk factors inherent in your industry. Our HR advisors will let you know how regular your HR audits should be, having regard to your commercial activities and budget.
In addition to periodic HR audits, specific situations may arise that give rise to a more urgent need. They include:
- Following a period of rapid growth. When a business scales quickly, its processes and policies often struggle to keep pace, necessitating an additional HR audit.
- Following changes in employment law. When UK employment law changes, you should undertake an HR audit to ensure that you comply with your additional or amended legal duties.
- Following a change in leadership. A new leadership team or HR manager will usually want to review the business’s current function to ensure that they are comfortable with its processes and procedures.
If you need assistance with an HR audit or any other aspect of your role as an employer, our HR consultants are perfectly placed to assist. We tailor our services to each client’s needs and budget constraints, providing straightforward advice that is both cost-effective and commercially viable.
Call us now on 01491 598 600 or Click Here to Make An Enquiry and we will be delighted to help you.
