How do you set up an HR audit? 5 steps to optimum human resources

HR auditing is emerging as an essential strategic tool for aligning your talent management practices with your objectives. By digging deeper into your HR processes, you can uncover untapped potential and correct underlying inefficiencies, while complying strictly with legislation.

Why carry out an HR audit? Where to start? This article gives you a step-by-step guide to maximising the efficiency of your human resources. We explain how a well-orchestrated audit can transform your organisation and make it prosper! With an example to back it up. 🤓

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What is an HR audit?

Definition of an HR audit

An HR audit is a methodical and detailed assessment of your :

• HR policies,
• procedures,
• HR documents
• and HR systems.

It ensures optimal use of your human resources while complying with legal standards.

🔑 Here are some key aspects of the HR audit:

• It assesses how HR processes such as recruitment, training, performance management and talent management are currently working. You identify strengths, weaknesses and opportunities for improvement.
• The audit verifies your company's legal compliance with the Labour Code, the rules of your collective agreement, social security obligations, etc. Beware of the penalties for non-compliance!
• It analyses your HR documents, from employee files to employment contracts and internal policies.
• It identifies risks such as a high turnover rate or lack of compliance.
• The results of the audit are used to formulate practical recommendations for optimising your HR practices through continuous improvement.

Why carry out an HR audit?

To assess your HR practices

The evaluation of HR practices is crucial and methodically analyses the effectiveness of your processes and procedures. Be curious: do your current practices attract and retain the best talent? 🤔

Go further by also looking at employee satisfaction and professional development. Take the time to analyse whether you are meeting your employees' expectations in terms of:

• remuneration policies,
• benefits
• and working environment.

Identifying potential risks and compliance failures

Risk identification and compliance in HR auditing are essential. An audit ensures compliance with legislation, avoiding potential sanctions.

It reviews your HR policies and assesses employment contracts, safety procedures and performance management.

In addition, the audit verifies the management of personal data, ensuring compliance with confidentiality rules. Finally, the analysis reveals weaknesses in current practices, enabling a preventive strategy against risks.

Optimising your HR costs and performance

Optimising costs and performance with an HR audit maximises your efficiency by minimising expenditure.

1. First, identify salary disproportions or double allowances.
2. Then detect redundant roles and improve productivity.
3. Then, the audit takes stock of your HR practices, from recruitment to training.

👉 Identify the flaws so you can put together more effective strategies!

Is it compulsory to carry out an HR audit?

Carrying out an HR audit is not legally compulsory in France. However, it is strongly recommended for all companies, whatever their size.

📅 It is advisable to carry out an HR audit at least every five years in order to improve human resources management and ensure compliance with current regulations.

Audit firm, external or internal auditor: who carries out the audit?

For a successful audit, choose your team carefully. Internal consultants know the company, but may lack objectivity. Conversely, external consultants from a specialist audit firm provide a neutral view and specialist expertise, but at a higher cost. Let's take a closer look at the two options 🔎 :

Advantages and disadvantages of in-house consultants:

• Control of internal processes,
• More accessible and sometimes less expensive,
• Risk of lack of objectivity and overload.

Advantages and disadvantages of external consultants:

• More objective with diversified expertise,
• A diversity of perspectives for rich insights,
• Adaptation time and additional costs required.

The choice depends on the size of the audit, the budget and the objectives. A mixed approach, exploiting the advantages of both, could be the key to a successful HR audit. ✅

Where to start for an effective HR audit? 5 steps

Phase 1: Preparation and planning

Preparation and planning are the foundations of a successful HR audit. Here, highlight your specific objectives, whether compliance or efficiency.

1. Drawing up a clear engagement letter describing the scope of the audit is also crucial. This method avoids drift.
2. You should also prepare the data and take care of the logistics, such as communication tools.
3. Finally, open up the dialogue. Informing your employees helps to build trust and reduces potential resistance.

Example: An SME prepares its audit to check contract compliance, informs its employees and sets clear objectives.

Phase 2: Implementation and data collection

Data collection is the heart of the audit. Examine your HR documents, conduct interviews and propose questionnaires. Get the figures talking too. 🧮

Use software to analyse existing HR data. Make sure confidentiality is respected, especially when processing sensitive data. Finally, structure your information to facilitate subsequent analysis.

Example: A firm distributes a questionnaire and analyses teleworking policies to reveal practical inconsistencies.

Phase 3: Data analysis

Methodical data analysis transforms raw information into actionable insights. Organise the data to reveal meaningful patterns. Statistical analysis evaluates HR variables, while qualitative analysis interprets interview feedback.

Then formulate clear findings and recommendations. We recommend using an HR dashboard to centralise and summarise all the data, making it easier to read and interpret.

Example: A company identifies a high turnover due to a lack of training and receives recommendations to remedy the situation.

Phase 4: Reporting the results

Reporting the results is not just about sharing the figures, it's about committing to change. ☝️

A clear, structured and detailed audit report highlights your findings and proposals. Tailor your communication to each audience:

• KPIs for management,
• practical advice for HR staff.

Hold feedback meetings to discuss the results and involve stakeholders. Maximise buy-in for successful implementation!

Example: A report points out that recruitment processes take too long, and the auditors suggest software to reduce the time taken.

Phase 5: Support and implementation

Post-audit support is vital if the proposed improvements are to be put into practice. Draw up a clear action plan with designated managers. Regular, transparent monitoring is your ally in measuring progress and adjusting if necessary. Finally, cultivate a culture of learning and flexibility. The HR audit must be a gateway to continuous renewal. 🚀

Example: A startup improves its onboarding with a digital platform and sees increased satisfaction among new recruits.

Example of an HR audit questionnaire

You can't do without an HR audit questionnaire to assess human resources practices within an organisation. It helps to identify strengths and areas for improvement, and to ensure compliance with current regulations.

Here is a structured example of a questionnaire covering the main areas of human resources:

1. Recruitment and integration

• Recruitment process: Do you have formalised procedures for recruitment?
• Job description: Are job descriptions up to date and do they reflect current responsibilities?
• Integration of new employees: Is there an onboarding programme in place for new recruits?

2. Training and development

• Training plan: Is there an annual training plan aligned with the needs of the company and its employees?
• Skills monitoring: How do you assess the effectiveness of the training provided?
• Development opportunities: Do you offer career paths or mentoring programmes?

3. Performance management

• Regular appraisals: Are appraisal interviews carried out periodically?
• Clear objectives: Are employees aware of the individual and collective objectives to be achieved?
• Constructive feedback: How is feedback communicated to employees?

4. Pay, remuneration and benefits

• Pay equity: Are salaries competitive and fair in relation to the market?
• Benefits: What benefits do you offer (health insurance, pensions, etc.)?
• Recognition and rewards: Are performance recognition programmes in place?

5. Legal and regulatory compliance

• Employment contracts: Do contracts comply with current legal obligations?
• Personal data: How do you ensure that employee data is protected in accordance with the GDPR?
• Health and safety: Are occupational health and safety policies implemented and followed?

6. Social climate and internal communication

• Employee satisfaction: Do you conduct regular satisfaction surveys?
• Internal communication: Are communication channels effective and accessible to all?
• Conflict management: Do you have procedures for managing internal conflicts?

Our practical advice for a successful HR audit

Carry out regular audits

Ensures ongoing compliance and quickly detects inefficiencies. This regularity reinforces a culture of transparency and continuous improvement. However, adapt the frequency to your specific needs and sector. A well-planned audit will enable you to remain competitive in a changing market.

Involve your staff directly

Involving your employees in the audit is crucial. This generates a climate of trust and ensures that the results truly reflect your realities. Conduct surveys and interviews and be transparent about the process. Share the results to increase support for the changes.

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The HR audit, good management practice for employees

In conclusion, the HR audit is an essential strategic tool. It enables you to ensure legal compliance, optimise performance and control costs. By following the phases described, from preparation to support, you will acquire a precise and strategic vision of your human resources.

Choose your audit team carefully, and apply tips such as proactive employee engagement and a regular audit schedule. ✨

In this way, the HR audit establishes itself as a real lever for success, correcting dysfunctions while capitalising on your strengths. This prepares you to thrive in a competitive environment.