The HR Audit Approach to review HR effectiveness and identify HR gaps

Tools include :  

• Reporting from HRIS systems and comparing trends over time

• Specific KPI indicators

• Customer and Key Stakeholder Satisfaction Results

Variables :  Can be both qualitiative and quantitative

Examples

• Human Resources (staffing)

• Indusrial Relations

• Performance Management

• Compensation

• Equal Employment Opportunity and Diversity

• Learning and Development 

• WHS

• Succession Planning

OVERALL EFFECTIVENESS:  

• Staff turnover

• Abseenteeism Rate

• Ratio capita revenue to capita cost

• Net Income per employee, ROI

The Analytical Approach

1)  The determination of an HR Program/Practice having achieved its intended effect

2)  Estimating Financial costs and benefits of HR Program/Practice

Requries Cost Benefit Analysis, HR Accounting, ROI measurement, Human Capital Management techniques