{"id":21505,"date":"2020-06-22T18:11:40","date_gmt":"2020-06-22T16:11:40","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=21505"},"modified":"2025-11-12T11:58:04","modified_gmt":"2025-11-12T09:58:04","slug":"checklist-hr-audit","status":"publish","type":"post","link":"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/","title":{"rendered":"How to Conduct an HR Audit to Double Your Team&#8217;s Efficiency [+ Free Template]"},"content":{"rendered":"<p>As organisations continue to grow and evolve, conducting periodic audits of various departments and processes becomes increasingly important, <em>especially <\/em>within human resources. <strong>Conducting a regular HR audit can help identify areas of improvement, ensure compliance with regulations, and ultimately improve the department&#8217;s overall effectiveness. <\/strong>This article will outline the steps involved in conducting an HR audit and the importance of using an HR audit checklist to ensure you&#8217;ve covered all bases.<\/p>\n<p><strong><a href=\"https:\/\/factorialhr.co.uk\/templates\/hr-audit-checklist\">Download our free HR audit checklist to streamline your audit process.\u00a0<\/a><\/strong><\/p>\n<div class=\"js-toc toc\">\n<p class=\"js-toc-title toc__title\">Table of Contents<\/p>\n<nav id=\"fac_toc_nav\" class=\"js-toc-nav toc__nav\" aria-label=\"Table of Contents\"><ol class=\"toc__list toc__list--level-1\"><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-1\" href=\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/#hr-audit-overview\" title=\"HR Audit Overview\" data-target-id=\"hr-audit-overview\">HR Audit Overview<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-2\" href=\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/#benefits-of-hr-audits\" title=\"Benefits of HR Audits\" data-target-id=\"benefits-of-hr-audits\">Benefits of HR Audits<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-3\" href=\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/#planning-an-hr-audit\" title=\"Planning an HR Audit\" data-target-id=\"planning-an-hr-audit\">Planning an HR Audit<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-4\" href=\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/#how-to-carry-out-an-hr-audit\" title=\"How to Carry Out an HR Audit\" data-target-id=\"how-to-carry-out-an-hr-audit\">How to Carry Out an HR Audit<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-5\" href=\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/#hr-audit-checklist-template\" title=\"HR Audit Checklist Template\" data-target-id=\"hr-audit-checklist-template\">HR Audit Checklist Template<\/a><\/li><\/ol><\/nav><\/div>\n<h2>HR Audit Overview<\/h2>\n<p>HR audits are self-evaluations that<strong> uncovers your HR team&#8217;s functions and efficiencies.<\/strong> By conducting HR audits, you&#8217;re proactively ensuring compliance with regulations and avoiding exposing your company to legal risk or hefty fines. Typically, HR audits will analyse current processes and understand if your company&#8217;s training, onboarding and recruitment workflows are up to date. This includes analysing if your core processes are meeting your current and future needs. Additionally, these audits serve to shed some light on essential <a href=\"https:\/\/factorialhr.co.uk\/blog\/human-resources-reports\/\">HR metrics<\/a> like turnover rate and time to hire. This way, you have the big picture of how effectively your HR team is performing and if they aligned with your organisation&#8217;s goals.<\/p>\n<p>Ultimately, having a clear HR audit process will give you <strong>valuable insights into your company&#8217;s overall performance<\/strong> and helps you find areas of improvement. By utilising templates or software will simplify your HR audit process and give structure to your inspection.<\/p>\n<div class=\"factorial-banner inline-banner banner-freebie category-hr-tips\"\n    data-banner-id=\"173304\"\n    data-banner-type=\"freebie\"\n    data-category=\"HR Tips\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Stay Compliant with our Free HR Audit Checklist<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Identify compliance risks before they become costly legal issues<\/li>\n                                                                                                <li class=\"not-prose\">Review all key HR areas from recruitment to employee relations<\/li>\n                                                                                                <li class=\"not-prose\">Save time with a ready-to-use PDF checklist designed by HR experts<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/templates\/hr-audit-checklist\"\n                    class=\"factorial-cta-button not-prose freebie\" data-cta=\"freebie\" data-cta-position=\"inline-banner\">\n                    Download for free                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/10\/14100624\/template-static-banner.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2>Benefits of HR Audits<\/h2>\n<p>It can be easy to get <strong>caught up in the hamster wheel of daily tasks<\/strong> and push back projects with longer-term benefits like HR audits. However, a human resources audit can improve the efficiency of those day-to-day processes, saving you time in the long run.<\/p>\n<p>Whether the focus lies on policies or performance, a yearly review of your HR uncovers problems and challenges that exist within the department. Evaluating these issues <strong>allows your company to improve and reduces the risk of litigations. <\/strong>It will also positively affect employer brand as your workforce and potential candidates will see you taking an active role in bettering working conditions. An HR audit process can also have the following impacts.<\/p>\n<h3><strong>Keep you compliant<\/strong><\/h3>\n<p>Lawsuits are a significant fear for any HR team, especially considering that employment laws are constantly evolving. An HR audit ensures you have up-to-date policies in line with legal frameworks like <a href=\"https:\/\/factorialhr.co.uk\/blog\/hr-compliance-uk-gdpr\/\">GDPR<\/a> and labor laws, helping you avoid penalties and litigation risks.<\/p>\n<h3><strong>Refine office policies <\/strong><\/h3>\n<p>An HR audit means holding up a magnifying glass to the processes and workplace policies that directly impact your employees, raising an opportunity to improve the employee experience and employee safety. Bettering company policies and clarifying your employee handbook will help to attract and retain top talent.<\/p>\n<h3><strong>Create an opportunity to collect data <\/strong><\/h3>\n<p>To carry out an HR audit, you&#8217;ll need to gather data on HR performance and the overall HR function. This can help HR departments to identify areas they may have overlooked and make their planning more strategic.<\/p>\n<p>Using an HR audit checklist gives you a place to record and centralise this. People teams in the UK seem to already be aware of the importance of metrics; research has shown that <a href=\"https:\/\/www.hrreview.co.uk\/hr-news\/uk-hr-professionals-most-likely-to-gather-and-utilise-people-data\/135714\" target=\"_blank\" rel=\"noopener noreferrer\">UK companies are more likely to gather and utilise people data<\/a> compared to many other European countries.<\/p>\n<h3><strong>Improve financial fairness<\/strong><\/h3>\n<p>During a typical HR audit, compensation and benefits come under the microscope. This will allow HR professionals to evaluate average salary and ensure employees are compensated fairly.<\/p>\n<h3><strong>Reveal<\/strong> <strong>HR inefficiencies <\/strong><\/h3>\n<p>A WorkFront &#8216;State of Work&#8217; survey revealed that <a href=\"https:\/\/www.hrreview.co.uk\/hr-news\/more-than-half-of-working-week-is-wasted-due-to-excessive-emails-and-unproductive-meetings\/120952\" target=\"_blank\" rel=\"noopener noreferrer\">UK employees spend less than half of their time<\/a> actually working due to \u201cunproductive activities and misapplied technologies&#8221;. Most respondents reported &#8216;lack of standard processes&#8217; as a top reason.<\/p>\n<p>A yearly review of HR processes can help address inefficiencies, such as fragmented systems, by recommending streamlined tools and more efficient workflows. A common inefficiency faced by companies nationwide is the need for employees to access multiple different HR systems. In fact, <a href=\"https:\/\/www.applaudhr.com\/blog\/trends\/15-hr-statistics-from-2022-to-enhance-employee-experience-in-2023\" target=\"_blank\" rel=\"noopener noreferrer\">37% of companies ask their workers to use 6-10 separate ones<\/a>!<\/p>\n<h3><strong>Boost company culture<\/strong><\/h3>\n<p>Part of employee well-being is rooted in how much they feel they are being valued. When employees see their company leaders paying attention to the needs of current employees and how to improve their day-to-day, it can strengthen company culture and your organisational reputation.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/images.surferseo.art\/246356e5-4340-42ed-a39e-83a5af0cdee1.jpeg\" alt=\"HR team carrying out an HR audit\" width=\"803\" height=\"535\" \/><\/p>\n<h2>Planning an HR Audit<\/h2>\n<p>Although there are many different ways in which companies can utilise HR audits, most assessments follow the same structure. The human resource audit consists of three parts:<\/p>\n<h3><strong>Pre-audit<\/strong><\/h3>\n<p>During this phase, you will have to collect data. This information can be quantitative or qualitative, depending on the point of interest.<\/p>\n<h3><strong>Data analysis<\/strong><\/h3>\n<p>Here you will assess the relevant information such as processes, procedures, policies, documents, and data.<\/p>\n<h3><strong>Reporting<\/strong><\/h3>\n<p>This should contain your findings and recommendations which will help improve the Human Resources function as best as possible.<\/p>\n<p><strong>Considering the time and effort you need to invest in a full-scale assessment, performing one human resource audit yearly is advisable.<\/strong>\u00a0When you make an assessment, you can choose to focus on the following areas:<\/p>\n<ul>\n<li>Recruitment and hiring practices<\/li>\n<li>Onboarding<\/li>\n<li><a href=\"https:\/\/factorialhr.co.uk\/blog\/importance-hr-management-hr-employee-ratio\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Management<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/factorialhr.co.uk\/blog\/training-programs\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Training and Development<\/strong><\/a><\/li>\n<li>Employee Relations<\/li>\n<li>Performance<\/li>\n<li>Strategic Planning<\/li>\n<li><a href=\"https:\/\/factorialhr.co.uk\/document-management\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Documentation<\/strong><\/a><\/li>\n<li><strong>Best Practices<\/strong><\/li>\n<li><a href=\"https:\/\/factorialhr.co.uk\/blog\/hr-compliance-laws\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Compliance with Laws and Regulations<\/strong><\/a><strong>.<\/strong><\/li>\n<\/ul>\n<p>You might also want to look into an HRIS. An <a href=\"https:\/\/factorialhr.co.uk\/hr-reports\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>HR reporting tool<\/strong><\/a> like Factorial allows you to gather deep insights on each of these organisational aspects in one place. This allows you to make well-informed, data-based decisions regarding your organisation.<\/p>\n<div class=\"factorial-banner inline-banner banner-demo category-hr-tips\"\n    data-banner-id=\"173306\"\n    data-banner-type=\"demo\"\n    data-category=\"HR Tips\">\n    <div class=\"banner-content\">\n        <div class=\"banner-text\">\n                            <h4>Make HR Audits Effortless with Factorial<\/h4>\n            \n                            <ul class=\"banner-checklist\">\n                                                                        <li class=\"not-prose\">Centralise all HR data in one place for faster, more accurate audits<\/li>\n                                                                                                <li class=\"not-prose\">Stay compliant with automated tracking of policies and regulations<\/li>\n                                                                                                <li class=\"not-prose\">Identify improvement areas instantly with real-time insights and reporting<\/li>\n                                                            <\/ul>\n            \n                            <a href=\"https:\/\/factorialhr.co.uk\/request-demo\"\n                    class=\"factorial-cta-button not-prose demo btn-brand\" data-cta=\"demo\" data-cta-position=\"inline-banner\">\n                    Get a demo                <\/a>\n                    <\/div>\n\n        <div class=\"banner-image has-image\">\n            <img decoding=\"async\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/10\/28160432\/Discover-banner-factorial-laptop.png\" class=\"not-prose\" \/>\n        <\/div>\n    <\/div>\n<\/div>\n<h2>How to Carry Out an HR Audit<\/h2>\n<p>Organisations should be realistic when it comes to how long their HR audit process will take. HR teams must commit sufficient time and attention to audit checks to get into the nitty-gritty of each HR process. Starting with an HR audit checklist provides a framework for your review and <strong>keeps a written record of findings and changes to support further audits<\/strong> down the line.<\/p>\n<p>Here are a few crucial steps to follow when carrying out your own audit:<\/p>\n<h3>Step 1: Establish the Purpose and Scope of the Audit<\/h3>\n<p>Before beginning an HR audit, it is <strong>essential to establish the objective of the audit.<\/strong> The purpose of the audit should align with the organisation&#8217;s overall goals and objectives. For example, the audit may be conducted to identify areas of improvement in the performance appraisal process, employee retention, employee benefits, or any other area human resources are responsible for.<\/p>\n<p>The audit scope should be clearly defined, and the areas to be audited should be identified. These may <strong>include HR policies and procedures, employee files, compensation and benefits, employee training and development, and compliance with UK employment laws.<\/strong><\/p>\n<p>At this point, you should also create a timeline with milestones &#8211; remember to regularly check in on this and hold people accountable for their assigned areas!<\/p>\n<h3>Step 2: Gather Information<\/h3>\n<p>The next step is to gather information about the HR department and its processes. This information can be <strong>obtained through interviews with HR staff, review of HR policies and procedures, and examination of employee files and other relevant documents.<\/strong> An HR software can support you here as employee <a href=\"https:\/\/factorialhr.co.uk\/hr-reports\" target=\"_blank\" rel=\"noopener noreferrer\">data and KPIs<\/a> related to your workforce can all be accessed from one place.<\/p>\n<p>Use an HR audit checklist to remind you of the details you need to collate and centralise the data you collect.<\/p>\n<h3>Step 3: Analyse the Information<\/h3>\n<p>Once the data has been gathered, it is time to dissect it! <strong>The analysis should focus on identifying areas of strength and weakness within the HR department.<\/strong> This may include identifying areas where company policies need to be updated, areas where compliance issues exist, and areas where employee satisfaction can be improved.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/images.surferseo.art\/0782cb98-e1e8-4e10-8935-b1f3930dbf37.jpeg\" alt=\"Analysing data from an HR audit\" width=\"938\" height=\"625\" \/><\/p>\n<h3>Step 4: Develop an Action Plan<\/h3>\n<p>Based on the analysis results, an action plan should be created. The action plan should prioritise the areas that need to be addressed and identify the steps that need to be taken to improve the HR department. <strong>It should also include timelines and responsible parties for each step; accountability is key to the progress of a review!<\/strong><\/p>\n<h3>Step 5: Implement the Action Plan<\/h3>\n<p>The final step is put everything into practise! This may involve updating procedures, training HR staff, and improving communication with employees. It is important to monitor progress and make adjustments as necessary.<\/p>\n<h2>HR Audit Checklist Template<\/h2>\n<p>Using a checklist will help you to stay organised and efficient throughout the auditing process. This list contains detailed questions that apply to the different areas of HR and is typically a couple of pages long. You can make it easier to complete by <strong>dividing the audit into smaller assessments and questions.<\/strong> It\u2019s up to you whether you want to use a \u201cyes\u201d or \u201cno\u201d format to answer the questions or allow a more detailed answer.<\/p>\n<p>Our <a href=\"https:\/\/factorialhr.co.uk\/templates\/hr-audit-checklist\" target=\"_blank\" rel=\"noopener noreferrer\">HR audit checklist template<\/a> provides a solid starting point for your review. It specifically focuses on onboarding, recruitment, and HR management &#8211; three areas that directly impact employee relations and HR professionals daily!<\/p>\n<h3>Digitalise your HR Audit Process with Factorial<\/h3>\n<p>If you&#8217;re looking for a digital solution, Factorial&#8217;s all-in-one business management platform is the tool for you. It centralises your employee data and provides real-time insights to make conducting HR audits faster and more accurate. Rather than juggling multiple spreadsheets, checklists and templates &#8211; you can access everything you need in one place. Fortunately, with Factorial, you can receive automated reminders to update policies or review workflows, making your team audit-ready year-round. Transform your HR audit process from a dreaded annual task to a strategic and streamlined process that drives growth. <a href=\"https:\/\/factorialhr.co.uk\/request-demo\">Book a demo with an HR consultant to see how Factorial can simplify your next HR audit.\u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As organisations continue to grow and evolve, conducting periodic audits of various departments and processes becomes increasingly important, especially within human resources. Conducting a regular HR audit can help identify areas of improvement, ensure compliance with regulations, and ultimately improve the department&#8217;s overall effectiveness. This article will outline the steps involved in conducting an HR<a href=\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":151,"featured_media":21509,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[108],"tags":[],"class_list":["post-21505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-tips-en-gb"],"acf":{"topics":"talent"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Conduct an HR Audit to Double Your Team&#039;s Efficiency | Factorial<\/title>\n<meta name=\"description\" content=\"Learn how to carry out an HR audit to streamline your processes and stay compliant. Download a free HR audit checklist template.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Conduct an HR Audit to Double Your Team&#039;s Efficiency [+ Free Template]\" \/>\n<meta property=\"og:description\" content=\"Learn how to carry out an HR audit to streamline your processes and stay compliant. Download a free HR audit checklist template.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/\" \/>\n<meta property=\"og:site_name\" content=\"Factorial\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/people\/Factorial\/100064908455810\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-22T16:11:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-12T09:58:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2020\/06\/22180714\/hr-audit-checklist1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"830\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Emma Baigey\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@factorialapp\" \/>\n<meta name=\"twitter:site\" content=\"@factorialapp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Emma Baigey\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/\"},\"author\":{\"name\":\"Emma Baigey\",\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/#\/schema\/person\/60f87cc8ee5125540515f3d7936d39b4\"},\"headline\":\"How to Conduct an HR Audit to Double Your Team&#8217;s Efficiency [+ Free Template]\",\"datePublished\":\"2020-06-22T16:11:40+00:00\",\"dateModified\":\"2025-11-12T09:58:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/\"},\"wordCount\":1626,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/#organization\"},\"articleSection\":[\"HR Tips\"],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/\",\"url\":\"https:\/\/factorialhr.co.uk\/blog\/checklist-hr-audit\/\",\"name\":\"How to Conduct an HR Audit to Double Your Team's Efficiency | Factorial\",\"isPartOf\":{\"@id\":\"https:\/\/factorialhr.co.uk\/blog\/#website\"},\"datePublished\":\"2020-06-22T16:11:40+00:00\",\"dateModified\":\"2025-11-12T09:58:04+00:00\",\"description\":\"Learn how to carry out an HR audit to streamline your processes and stay compliant. 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