• HR audits provide many benefits for employers, but also some potential negatives.

There are numerous benefits to a human resources (HR) audit if it is properly conducted and acted upon. However, there are some potential negatives as well. Before conducting an audit, be aware of the following points.

Benefits

First, an HR audit can help to identify and correct regulatory non-compliance problems, which can help reduce liability.

A second benefit is that an audit can serve as an educational tool. It can increase employee awareness and understanding of human resources, and the audit process can also be an opportunity to demonstrate a 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 a company is making a good-faith effort to comply with applicable regulatory requirements and good practices.

Potential drawbacks

An HR audit may uncover previously unknown problems, and the solution may not always be simple. If a violation of a regulation or law is discovered, what will be done?

Failure to correct problems identified in an audit can potentially lead to many more problems. Implementing corrective actions in a timely manner is an important part of conducting an audit. If problems are identified in an audit and nothing is done to correct the situation, this information may be used against a company in future enforcement proceedings.