HUMAN RESOURCES AUDIT

HUMAN RESOURCES AUDIT

HR Audit helps companies performance on HR management by:
• Provides feedback on the contribution of HR functions to business
strategy and company goals.
• Assess the quality of HR practices, policies and management.
• Report the current existence of HR and the corrective steps needed.
• Assess the costs and benefits of HR practices.
• Assess the relationship between HR and line management and how
to improve it.
• Design guidelines to determine HR performance standards.
• Identify areas that need to be changed and improved with specific
recommendations.
HR AUDIT FRAMEWORK
TUJUAN BISNIS

PENGELOLAAN SDM
•Penentuan prioritas
•Pengembangan stategi
SDM
•Aktivitas program SDM
harian

EVALUASI
PENGARUH PENINGKATAN AUDIT SDM
PERUBAHAN BERKELANJUTAN
DARI HASIL
AUDIT

IDENTIFIKASI DAN
IMPLEMENTASI
PROGRAM
PERBAIKAN
 HR AUDIT GOALS
There are a number of things you want to achieve through an HR audit that
are the objectives of the audit, including:

• Assessing the effectiveness of the HR function.

Assess whether HR programs / activities have been running
economically, effectively, and efficiently.
• Ensure compliance with various HR programs / activities against legal,
regulatory and policy provisions that apply in the company.
• Identify various things that can still be improved on HR activities in
supporting its contribution to the company.
• Formulate several appropriate remedial steps to improve economization,
efficiency and effectiveness of various HR programs / activities.
 BENEFITS OF HR AUDIT
Some of the benefits of HR audits include:

• Identify contributions from the HR Department to the organization.

• Improve the professional image of the HR Department.
• Encourage higher responsibility and professionalism of SDM Department
employees.
• Clarifying the duties and responsibilities of the HR Department.
• Encourage the diversity of HR policies and practices.
• Find critical problems in the HR field.
• Ensuring compliance with laws and regulations, in HR practice.
• Lowering HR costs through more effective HR procedures.
• Increased desire to change within the HR Department.
• Provide careful evaluation of the HR information system.
 HR AUDIT APPROACH
• Determine compliance with the law and various
applicable regulations
• Measuring program suitability with organizational
goals
• Measuring program performance
 AUDIT STEPS
These steps include:
• Preliminary audit
• Review and test management control over programs
• Advanced audit
• Reporting
• Follow-up
 Preliminary Audit
At this stage, the auditor emphasizes his audit on the search
for background information and an overview of the audited
HR programs / activities. The purpose of the audit in the HR
audit must be formulated in advance and requires a survey
to understand the conditions that occur related to the
program / activity being audited.
The audit objective consists of 3 elements, namely:
• Criteria
• Cause
• Consequence
 CRITERIA
CRITERIA is a standard (norm) that acts as a guideline
for each individual and group within the organization.
Criteria can be in the form of:
• HR Plan
• Policies and regulations regarding HR
• The purpose of each HR program
• SOP of the company
etc
 CAUSES

Causes are the implementation of HR programs within

the organization that cause the existing HR conditions.
The causes are positive and some are negative.
 Consequence
Consequence is something that must be borne by the
company because of differences in activities that
should be carried out (based on criteria) with actual
activities that occur in the field. As a result there can be
measured financially or non-financially.
 ADVANCED AUDIT
• From the audit findings obtained, the auditor
summarizes and classifies these findings into criteria,
causes and consequences.
• These various groups of findings are then analyzed to
understand whether the problem is independent or
interrelated with other problems
• From the various shortcomings that the auditor found, he
then compiled a recommendation to correct the
irregularities that occurred so as not to recur
 REPORTING

The audit report must contain background information,

audit conclusions and be accompanied by audit findings
as supporting evidence for these conclusions, must also
contain recommendations and scope of the audit.
 FOLLOW-UP
Follow-up is the implementation of recommendations
given by the auditor. In its implementation the auditor
accompanies so that the follow-up runs in accordance
with the recommendations given.
 AUDIT OF THE ACQUISITION HR
• HR Planning
HR Planning is a process of analysis and identification of
the needs and availability of HR to complete various
fields of tasks and responsibilities that must be
managed by the company in achieving its objectives.
 HR planning benefits
• The company can optimally utilize existing HR in the
company.
• Improve work effectiveness.
• Increase employee work productivity
• Availability of qualified human resources for greater
authority and responsibility in the future.
• Providing basic HR programming for HR functions.
 Recruitment
Key activities in implementing recruitment include:
• Determine short and long term needs in each field, type
of work and level in the company.
• Keep on trying to get information about developments in
labor market conditions.
• Arrange active recruitment materials.
• Develop an integrated recruitment program related to
other HR activities and with cooperation between line
managers and employees.
 Selection and Placement
Selection is the process of getting and use information
about job applicants to determine who should be
accepted to occupy short and long term positions.
Where placement (placement) is related to matching a
person with the position he will hold
Specific objectives that can be achieved through selection
are as follows:
• Allows companies to implement business strategies
specifically those that have been set.
• Ensure that financial investments made by employees
(HR) can return at a certain time.
• Evaluating, hiring, and placing applicants in positions that
match their interests.
• Treat applicants fairly (not discriminatory).