HR Audit

Audit Team

•Devika Shinde P34•Sukhada Kulkarni P17•Pradnia Bhalerao C03•Puja Govekar P09•Anandita Singh C34• Jayashree Prabhu C43

HR AUDITAn HR audit is a process to

reviewimplementation of your

institutions policiesand procedures, ensure

compliance withemployment law, eliminate

liabilities,implement best practices

and educate yourmanagers.

SCOPE & IMPORTANCE• Generally, no one can measure the attitude of human being and

also their problems are not confined to the HR department alone. So it is very much broad in nature.

• Goal of the HR audit includes two different analyses and valuations: the HR policies and their level of fit with the strategy of the firm, and the characteristics of human capital.

• Several criteria have been used to assess different HR policies. Nevertheless, the measurement of the value that human capital brings to the firm is a very complex topic.

AUDIT TOOLS

• Interview

• Document review

• Questionnaire

• Sampling

COMPANY BACKGROUND & AREA OF AUDIT

• INFOLINE LTD- An I.T industry

•Audit of Recruitment & Selection function.

Objectives -Recruitment ProcessAudit•To clarify desired practices.

• To establish a baseline for future improvement. • To evaluate current effectiveness. • To standardize recruitment practices across multiple

sites within a division or company. • To assess current knowledge and skills required of

HR practitioners for the recruitment process. • In order to help the organization to evaluate it’s entire

recruitment process and strategy against global best practices.

Benefits Of Recruitment Audit•To understand what recruitment streams are most and

least successful for the organization.•To streamline our recruitment processes by making

them more cost and time effective .

Action Plan

Pre Audit : Defined desired HR practices for recruitment process for the organization • Internal auditor.

• Secured senior management commitment.

• Listed all activities undertaken by HR department of our company.

• Introduced the audit process to our managers.

• Pre-Audit Information: • Company information, past records, comp. Growth over

the period, HR manual.

During Audit :Assessed current practices against the criterion that Auditor’s have established .Observational Method :• JD documents.• Recruitment room, space.• Interviews and way they are conducted.• Assessment in the interview.• Whole recruitment and selection process

performed for any one position.

•Secondary data collection:▫Recruitment data analysis(no. and quality of applicants in

relation to those recruited).▫ Manpower guidelines.▫Recruitment policies.▫Organizational structure of HR department.▫Previous HR audit records.▫ Attrition rates, department wise entry and exit interview

data.

……………..Contd.

Questionnaire

•Questionnaire to analyze how the process is carried out.

Audit report presentation•Highlight areas that are :▫Urgent and important (UI),▫Not urgent but important (NUI), ▫Not urgent not important (NNI))

•As a result of this scheme of classification, managements can prioritize their steps.

Findings

Negative findings• Improper formulation of JD• No proper information at the time

of interview(communication gap)• Improper treatment to candidates• Appointment letters delayed

Positive finding• Recruitment policy is at par with

the industry standards• Systematic• MPP is effective• Optimum utilization of allocated

budget• Proper distribution of the budget.

Recommendations •Clear and specific Job Description •Plan the process•Communication and coordination required.•Provide proper facilities & seating arrangements•Computerize the process

Thank You