As a small to medium sized business, you may feel you don’t need a HR audit, especially if you only have a small workforce. The assumption is that HR audits are for big players, to make sure they are compliant and to evaluate the current human resources processes. However, HR audits are not just conducted for these reasons – they are tailored to each business and can highlight gaps in your HR model, helping the company to develop and grow.
Every company requires an audit from time to time, in a range of business areas. From financial audits to health and safety, getting the professionals in to identify areas for improvement is a great tool which should be utilised. HR audits work in a similar way to address any inefficiencies and improve the HR strategy.
Here are three main reasons why you should consider a HR audit.
1. It helps you plan for the future
In all aspects of business you need to prepare for what the future holds – and HR is no exception. If you’re planning on hiring more staff or reducing the headcount, your policies need to be compliant and up to date. Many HR procedures can also assist in other areas of the business, whether you wish to boost revenue streams or expand into new markets. An audit will ensure you have the best practices in place in order to move forwards.
2. Assess current compliance
Employment laws and regulations are ever changing, so it’s no wonder that many business owners simply can’t keep up. A HR audit will help a company stay in compliance with the law, and identify risk areas which may need revising. Small businesses, especially when they don’t have a HR department, have a lot to lose if they get caught out with a fine – which is why audits can be crucial for SMEs and not just large corporations.
3. Professional, honest advice
When you conduct a HR audit you won’t just receive a report telling you where you’re going wrong. Yes, there may be some issues to address, but the most important aspect is a step by step plan to plug the gaps. The professionals who carried out the audit will make recommendations in order of priority, which will vastly improve your HR function. By creating further transparency and a better relationship between HR and your staff, the company can focus on making money. You’ll get first rate advice from professionals, who will be able to look at your business with an objective view.