Human Resource Audit

An In-depth Analysis of HR Functions

Prepared By

Md. Mehnazuddin Rupom

Executive Learning & Development Lafarge Surma Cement Limited md_mehanazuddin_rupom@zoho.com

What is Audit?

Independent, objective assurance Focused on areas of greatest significance or risk Helps the organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance Clearly linked to the business strategy

What is HR Audit?

Human Resources Audit is a comprehensive method or way to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to ensure compliance with ever-changing rules and regulations.

Purpose of HR Audit? To assess the effectiveness of Current HR Functions To find out the gaps or area of improvements so that risks are minimized Ensure proper practice to generate accurate, consistent and timely information so that decision making process can be improved Align HR Functions with organization's vision & mission

Scope of HR Audit?

Audit of all HR Functions (e.g. Recruitment, Training & Development etc.) Corporate HR Policy & Procedures Compliance with Bangladesh Labor Law 2006 Documentation Procedure (e.g. Leave Documents, Separation Documents, Personal File Management etc.) Employee Retention Plan Performance Management System Talent Management Strategy (e.g. Training Need Analysis, Succession Plan etc.)

How will HR Audit run?

Current HR Potential Analysis (Comprehensive HR Pre-Audit Tool will be used) Interview Session with Top Management (e.g. MD, COO/CEO, HODs) Labor Law Compliance Check (Comprehensive HR Audit Tool will be used) Documentation Procedure Consistency Check (Comprehensive HR Audit Tool will be used) Talent Management Strategy, Training Need Analysis, Performance Management System Check & Organization Culture Check (Comprehensive HR Audit Tool will be used) Formal Report Submission after the Audit (Detail Analysis & Recommendation will be provided)

Example Criteria (As per KPMG LLP)

Plans, practices, and/or systems are in place to identify the number and type of staff and skill sets required for current and future operations. HR components of operational plans are linked to strategic and business requirements, reflect available financial resources, and are based on proper demographic analyses and other information. Critical positions have been identified and succession and/or career development plans have been developed for each. Mechanisms to assess and monitor employee satisfaction and morale are in place. The HR function provides consistent, reliable, and timely advice and information for analysis, planning, and decision making purposes. Opportunities to increase process efficiency are periodically identified and implemented. Performance evaluation processes align employee goals and performance with organizational objectives and priorities and require objective assessments of actual performance against goals at least semi-annually. Roles, responsibilities, and accountabilities are clearly defined, communicated, and understood.

In each case Comprehensive HR Audit Tools will be used

HR Audit Team Formation

Audit Team Lead

Audit Consultant/Expert

Recruitment Personnel

Labor Relations Personnel

Training & Development Personnel

HR Audit Progress Plan

Thank You