Audit of the HR structure

Auditing of the HR structure, or HR audit, is a large-scale procedure and involves assessing all components of the personnel management process, determining the company's HR potential, and analysing the effectiveness of the personnel management system. An important step in this process – an HR record audit.

This event is required in the event of a replacement of an employee responsible for personnel record management; prior to an audit by the Labour Inspectorate, including a possible audit in connection with the dismissal of an offended employee by the employer or in connection with a delay of salaries; in the event of a change in management of the company; changes in legislation relating to the keeping of personnel records.

Audit of personnel record management.

Auditing the client company's HR structure by Global Staff includes:

Auditing the client's HR structure by Global Staff.

Checking compliance with the requirements of existing legislation.
Analysis of employment contracts concluded by the client company as well as civil law contracts with individuals.
Checking the accuracy of documentation on accounting and remuneration of employees – staffing table, personal cards of workers, timesheets, holiday schedules, etc.
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Evaluation of the accuracy of maintenance of personnel files and work record books.
Analysis of the completeness, efficiency and correctness of the organization of preparation, approval, registration and storage of documents.

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After the audits, the client receives an audit report and recommendations on the company's HR record keeping. Bringing HR records fully in line with labor law requirements will prevent conflicts with regulatory agencies and help avoid fines.

For more detailed information on conducting of consulting (HR audit of personnel at the enterprise) in your organization, you can learn from our consultants.

Audit of the HR structure

HR auditing and consulting in the HR field: what, where, when and how much ❓

So what is an HR audit and how does the service differ from HR consulting?

One of the youngest areas of HR management is HR consulting and HR auditing. They are carried out with the aim of optimising personnel management. While the objectives are similar, the forms and methods, as well as the nature of consulting and auditing are very different.

Human Resources Audit

Auditing – is an independent audit. In this case – an audit of personnel records. After all, in the case of any deviations from the norm in the design of personnel documents the company can get into serious fines. Also personnel audit allows you to avoid conflict situations. It may be conducted as part of an HR consulting engagement, or it may be independent of it.

There are two types of audits:

internal;

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Internal auditing is performed by professionals in their organization. It is useful for small companies with few employees. The audit is typically conducted by professionals with expertise in labor law.

In the external audit, specialists are invited from outside, usually from a consulting company. They conduct the audit and draw up an act with recommendations to remedy shortcomings.

In the external audit, specialists from outside the company are invited, usually consulting firms.

Human resources audits can also be divided into full and spot audits based on the scope of the audit.

In an HR audit, there are three audits:

A legal assessment of all documents maintained by the company.
Checking the organisation for completeness of a set of statutory documents.
Checking the areas that traditionally cause the most trouble in inspections. These are mainly the legality of employment of foreign nationals, as well as payroll of employees.

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Main phases of the audit:

Setting up the audit tasks by issuing an order defining the objectives, deadlines and persons responsible for the audit.
Setting up the audit tasks with an order defining the objectives, deadlines and persons responsible for the audit.
Constitute a review panel or invite external specialists

The inspection itself.

The results of the inspection.

An audit report must be issued to reflect the company's real situation with respect to the matter audited. It should follow the following outline:

The findings of the audit report reflect the real situation of the company and the issue being audited.

the subject matter of the audit
permissible irregularities;
legislation relied upon in the audit;
the risks involved;

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Human Resources Consulting

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Human resources or HR consulting — is a set of measures to adjust and improve the organizational structure of the company. The main consulting purposes are introduction of effective forms and methods of personnel management which will allow the company to function successfully. Consulting, as compared to HR auditing, is a broader concept, covering a wider range of HR issues.

The main objectives of HR consulting are:

Designing an effective human resource management mechanism.
Optimise the performance of the existing human resources function
Create a human resources function from the ground up.
What benefits will the manager gain from HR consultancy?
Save time in selecting and deploying staff.
Lower total payroll costs.
Objective evaluation of human resources management system.
increased productivity.
Creating a healthy moral and psychological climate in the company.

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The demand for HR consulting is growing all the time with more and more firms offering this kind of service. Our company GlobalStaff, which has a long history in the recruitment market and is involved in recruiting and training staff at various levels and in all areas of HR consulting, including HR auditing and HR consulting.

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