HR Audit
Conducting an HR Audit
An HR Audit is a practical way to review your existing HR arrangements, identify potential gaps and decide what action needs to be taken.
Our High-Level HR Audit is designed specifically for small and medium-sized enterprises (SMEs). It provides a starting point to help you understand what you currently have in place, where improvements may be needed and whether there are any areas of potential risk.
You can then use the findings to create an action plan and prioritise what needs to be done.
How does it work?
Start by downloading our HR Audit template.
Work through the questions, recording what you currently have in place, any concerns or gaps identified and what action may be required.
The audit also allows you to assign a priority to each action:
Priority 1 – Immediate action: A significant risk or compliance issue requiring prompt attention.
Priority 2 – Action within 6 months: An area requiring improvement where there is no immediate significant risk.
Priority 3 – Action within 12 months: A lower-priority improvement with minimal risk.
These are suggested priorities. Always consider the circumstances and level of risk when deciding how quickly an issue needs to be addressed.
What does the audit cover?
The template reviews the main areas of HR, including:
Recruitment and selection.
New starters, induction and probationary periods.
Contracts of employment.
Equal opportunities and preventing harassment.
Absence and holidays.
Employee handbooks, HR policies and procedures.
HR administration and employee records.
Employee communication and keeping documents up to date.
Appraisals, training and development.
What happens if you identify a gap?
The audit is a high-level review. It helps you identify what you have in place, but it doesn't examine every document or procedure in detail.
For example, the audit asks whether your employees have written contracts of employment.
If they do, that's a good start. But are those contracts up to date? Do they meet legal requirements? Do they provide the protection and flexibility your business needs?
You can use the guidance and templates within YourHR.guide to review these areas in more detail and identify any changes required.
Turning your audit into an action plan
The HR Audit includes space to record your findings, proposed actions and priorities.
Once completed, you'll have a useful overview of your existing HR arrangements and a practical action plan to work from.
It can also help you explain potential risks and recommended improvements to senior management and obtain agreement on the actions required.
Don't file it away and forget about it! Use it to monitor progress, update your actions as they're completed and revisit the audit periodically.
Get started
Download the HR Audit Template
Once you've completed your audit, use Step by Step HR and the guidance and templates throughout YourHR.guide to help you address any gaps and build a solid HR foundation.