Question: Is it worth allocating company time and resources to an HR audit? With staffing shortages taking a toll, I’m not sure I can justify the benefits to my leadership team.

Answer: When weighing the pros and cons of a human resources (HR) audit, keep in mind that a successful audit can help identify and correct regulatory non-compliance problems, which can help reduce your company’s liability.

A second benefit is that an audit can serve as an educational tool. It can increase employee awareness and understanding of HR, and the audit process can also be an opportunity to demonstrate your company’s commitment to compliance and employee relations.

Third, audits may identify ways to improve the efficiency and cost-effectiveness of an HR system.

Finally, audits may be viewed favorably by regulatory agencies and in legal proceedings. A thoroughly completed HR audit with proper follow-up can signal that your company is making a good-faith effort to comply with applicable regulatory requirements and good practices.