Advantages of HR audit

HR audit examines all aspects of human resources and hence, can trigger dramatic improvements.  The most visible benefit would be improved productivity more than offsetting the cost of the audit.

 Changes in ownership, leadership, business strategy or model, can make an HR audit critical. In such circumstances, HR audit is a comprehensive guideline, for major decisions. The most important group to benefit from an HR audit is the board room. Even though not legally binding like finance, HR audit is as helpful and necessary at the board level

 HR audit is a tool for corporate governance and especially helpful for marketing and human resources function.

 HR audit when designed on a comprehensive basis, leads to improvement in quality of products and services marketed by the organization, with long term benefits.

 Importantly, HR audit can analyze failures and fix responsibilities logically. It frees the organization from politics, blame-game and excuses for non performance, bringing in a new culture of professionalism.

 HR audit therefore is a comprehensive review of all human aspects of an organization such as quality and numbers, structure and systems, skills and attitudes, and how appropriate are they, for short term and long term goals of the organization. This review should endorse that all aspects of HR is in line with the vision and mission statements of the organization. Unfortunately, today’s work environment focuses more on getting things done without working on the inner problems of individuals. The significance of a HR audit is that it recognizes the importance of creating the right environment and thereby facilitating long term productivity improvement.

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