With the technology advancing at a faster rate, organizations are implementing advanced technologies to manage human resources, policies, practices, and asses the management, compliance, and governance of the organization through a comprehensive audit. This comprehensive audit helps the organizations to identify the potential risks and benefits to determine the effectiveness of the human resource to manage it. The HR Audit helps to examine the weakness in the human support, compliance and human capital. Holistic approach towards human capital related risks, interrelationships between human resource and other management helps to build up the stronger organization.
A regular, systematic HR audit helps to eliminate inherent organizations risks and aligns all the functional areas towards the organizational growth.
? HR Audit for the future corporate growth: A detailed research and analysis of the risk through the HR Audit assessment helps the management to have sufficient control over the business. It helps to map and derive the HR systems with desired processes and practice. It eliminates the existing gaps for the future goals and sets a derived road map for the human resource department.
? Risk and compliance framework: HR Audit helps to align the HR and people management practices within the governance. It sets a defined structure of how the organization should function and helps to build up the integrated reporting model of the organization.
? Risk assessment practices: HR Audit ensures appropriate risk assessment procedures and practices relating to employers are embedded within the governance of the organization.
? Risk controls: HR Audit helps the organizations to create suitable risk control designs and ensures it is implemented in the HR functions. Risk design controls the entire employers and stakeholders to abide by the organizational goals.
? Risk Culture: Through the HR Audit organization creates a sustaining risk culture which encourages creativity and innovation. The innovative process helps to sustain the organization from risks.
By preparing, identifying, mitigating and communicating the risk helps the organizations to run smoothly in all areas of business. Through ERM(enterprise risk management) ensures people or human capital risks is included as a part of their work. Managing risks plays a vital role in the organization and helps the HR functions to have control over it.