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HR Audit: An essential strategic tool for your business
You might need to work with an independent HR consultant for lots of different reasons…
Maybe you have an issue with an employee and you need urgent support. Maybe you’re going through a period of change and need a guiding hand. Or maybe you have big goals and want to boost overall productivity.
As an independent HR consultant, we’re here to be your business’s Strategic Partner and our primary goal is to work in the best interests of your business to help you to achieve your goals.
In order to do this, we need to understand how your business ticks, the risks it faces and the opportunities available to you.
Likewise, you need to understand how your employees (your biggest cost and asset) can help you get there.
That’s why, when we start working together, we’ll likely conduct an HR Audit of your business.
What is an HR Audit?
An HR Audit is a comprehensive review of your company through the lens of an experienced HR consultant.
Once we understand your goals and what you’re trying to achieve, we follow a structured approach to look at what’s happening in your business.
We’ll look at everything we need to in order to advise on what needs to be worked on in the future to help you achieve your goals.
What is the main benefit of having an HR Audit?
✅ Peace of mind
We’ll ensure your company is legally compliant and protected against costly employment tribunal claims.
✅ Data-driven decision making
HR can often feel intangible. That’s why we’ll create HR Metrics, report on them and create a RAG-rated priority list of actions we need to take to help you to achieve your goals.
✅ Customised and cost-efficient support
Once we know what needs to be worked on, we can provide you with the best possible support and price to make it happen.
Let’s deep dive into the different areas of your HR Audit
Compliance check and risk assessment
The audit will start with a thorough compliance check to ensure that your HR practices meet legal and regulatory standards.
This includes reviewing employment contracts, workplace policies and other critical documentation to identify gaps that could expose your business to legal risks.
We’ll also want to look for risks and review areas such as termination processes, data protection and workplace safety.
Identifying these risks early helps you to implement corrective actions before they escalate into major issues.
HR Metrics: Making HR Tangible
The audit uses data-driven HR metrics to make HR performance tangible and measurable.
Key metrics may include employee turnover rates, time-to-hire, employee engagement scores and absenteeism rates.
We’ll create the best metrics to track based on your business, employees and goals.
This will help us to understand how your business is performing and enable us to create benchmarks and reports in the future to demonstrate ROI.
RAG Rated Priority List
The audit findings will be presented in a priority list rated by RAG (Red, Amber, Green). This list highlights the most critical areas (Red) that need immediate attention, moderate issues (Amber) that should be addressed soon, and compliant areas (Green) that are performing well.
Organising actions in this way will help us to prioritise budget, time and energy into the areas of your business that will have the biggest impact on revenue and profits.
Data-Driven Decisions
HR decisions can be made and backed by data using the insights gathered.
This is really important in any part of your business, especially when looking at your people strategy.
Without the HR Audit, we won’t be able to create metrics and use data to drive our decisions.
Customised and cost-efficient support
An HR Audit is the best way to get customised and cost-efficient HR support tailored to your business’s specific needs and priorities.
Once we know what needs to be done, we can offer you the support you need in the most cost-efficient way as the scope of the work is clearer.
Why an HR Audit is essential for your business
Conducting an HR Audit is not just a compliance exercise; it’s a strategic tool that provides invaluable insights into the health of your HR operations.
Whether a small business or a growing company, an HR Audit can help you to identify inefficiencies, reduce costs, and create a more productive and legally compliant workplace.
Next Steps
We can offer a few different HR Audit levels to best suit your business’s size and budget.
To discuss our packages in more detail, please get in touch for a confidential chat.