Internal – carried out by specialized units in the company, based on internal procedures and standards;
External – carried out by external organizations – specialized audit companies upon company request.
Б) According to their frequency:
Regular (Planned) – usually on an annual base, but other period is also an option;
Upon request – based on company management decision; or in case of accident or found; for benchmarking the Company with other in the industry, and others.
С) According to the goals:
Compliance audit– Is a systematic comparison of HR practices against company policies and/or legislation. The result of the audit is a detailed list of gaps and discrepancies between what is required and what is the current situation in the company;
Continuous improvement audit– is the systematic process of identifying gaps and discrepancy of HR department performance and comparative analysis of between what is now and what could or should and required to be. The output of the audit is a report with opportunities for improving and increase HR effectiveness and efficiency on organizational and/or functional level;
In Mergers and Acquisitions – through a formal research is evaluated the current state of HR management in an organization by identifying, collecting and reviewing critical information to determine the risk factors. The output of the audit is a report with company current state analysis, risks assessment, even in their money equivalent, the need of alignment of the policies and procedures of the acquired/merged company to acquiring one, duplicated functions, etc.
The HR Audit is a complicated system of objectives, processes and methodology, and very often a combination of the mentioned above types of audits is possible.
