HR Audit
A systematic review of HR policies, processes, and compliance against standards.
Definition
An HR audit is a comprehensive review and assessment of an organization's HR policies, practices, systems, and documentation to evaluate their compliance with applicable laws, alignment with best practices, and effectiveness in supporting organizational goals. It covers areas including recruitment, compensation, performance management, training, employee relations, and statutory compliance. The audit produces a report identifying gaps and recommending corrective actions.
Example
“The annual HR audit uncovered that 15 employees had been classified as contractors without meeting the legal tests for self-employment, exposing the company to significant tax and compliance risk.”
Synonyms
- people audit
- HR review
- HR assessment
- compliance audit