Benefits of HR Audit
Benefits of HR Audit HR audit is very beneficial for any organisation. Some of its noteworthy roles are as follows:
1) Promoting Critical Business Plans:
Every organisation follows certain strategic plans in order to achieve organisational goals. The path of reaching these objectives becomes easier if the employees also contribute their point of view about these plans and involve themselves completely to achieve these objectives.
Thus this is the responsibility of the HR auditor to convince the management to disclose these strategic plans to employees of the organisation so that they can participate comfortably in the decision-making process of the organisation.
2) Role Clarity of HR Functions:
People working in the HR department must be very clear about their roles and responsibilities in the department. They should have a clear understanding that their priority should be the interest of the organisation.
This role transparency function is performed by HR audit. HR audit Do only creates awareness among the employees about their role in HRD but also directs the senior management to provide support in the activities of HRD.
3) Improving Organisational Competency:
Another benefit of HR audit is that it helps in identifying the competency level of the particular organisation. For this, it tries to search out for the strength as well as weakness of the present administrative system.
In case there is any drawback in the functioning of the system, HR audit tries to develop those techniques by which the productivity can be increased. Enhancing strengths and removing weaknesses have a positive impact on the performance of the employees.
These positive impacts are also visible on HRIS, working procedures, delegation and clarifications of roles and responsibilities, information sharing, etc. This in turn will ultimately help in improving the competency level of the organisation.
4) Analysis of HR Functions:
HR audit plays a very crucial role in analysing the functioning of the HR department. It provides a platform to the HR department to face various competitions and prepare themselves for future oppositions.
It also guides the HR department in the processes of enrolment, policy development, training, promotion, maintenance, counseling, etc. It helps in evaluating the performance of the employees and developing their leadership qualities. If necessary HR audit also helps in re-designing the development system of the HR department.
5) ROI Analysis:
Every organisation makes a lot of expenses on the development of human resources in the form of recruitment, training programmes, compensation, improvising working conditions, etc., so that they can obtain a greater Return on Investment (ROI). Thus, HR audit determines ROI.
It also determines the need for various training courses and how these can be best utilised for the growth of human resources as well as for the corporation. Making these programmes cost effective also prepares the management to carry out these functions effortlessly.
6) Increased Focus on Human Resources Capabilities:
HR audit is a tool which focuses on the knowledge. experience, behaviour and outlook of the employees. Competencies (managerial, technical, and human) of the employees at different levels of the organisation are identified and assessed.
If there is any gap found between the competencies possessed by the employees and that which are required by the organisation, then appropriate measures can be taken to fill the gap. The techniques which can be used for this area performance appraisal, role clarity exercises, etc.
7) Strengthening Performance Improvement Mechanisms:
HR audit can adopt performance development techniques in order to increase the input given by the employees. The methods may include performance planning of the employees, sharing the aspirations with the employees, documenting the tasks assigned to them, by giving them responsibilities and congenial working environment, etc.