Auditing and Administrating Human Resource Policies and Practices

Who Will Benefit:

• HR Heads, HR Manager, HR Professionals
• Planning and Audit Managers
• Internal/External Auditors
• Risk Managers
• Compliance Officers
• Line Managers
• CFOs/COOs/CEOs

Topic Background:

National surveys of risk managers identify human capital related risks as one of the most important risks facing organization…and one of the least effectively managed. Meanwhile CEO global surveys concerning high-impact global risks consistently rank the “availability of key skills” as a critical risk…a risk — if not effectively managed — that can negatively affect the achievement of strategic and business objectives, negatively affect competitiveness, and hamper an organization’s ability to innovate.

HR experts and business leaders further note that misaligned, ineffective, and improper human capital management policies, practices, and processes create financial, operational, and reputational risks that can threaten an organization’s bottom line, adversely impact sustainability, and reduce the organization’s value for its stakeholders.

Conversely, effective human capital risk management can create a competitive advantage, create new business development opportunities, enhance the effective deployment of resources, and create value. Thus the benefit from HR audits.

According to survey of international risk managers, the human capital risk was a significant risk threatening organizations worldwide…it was also identified as “one of the least effectively managed.” HR experts further noted that ineffective, misaligned, and improper human capital policies, practices, and procedures create significant financial, strategic, operational, and reputational risks that can threaten the organization’s sustainability and reduce the organization’s value for its stakeholders.

To help assess their exposure and vulnerability to these human capital risks and to help enhance the management of their human capital asset, organizations are increasingly conducting HR audits. No longer mere checklists of do’s and don’ts, these audits are becoming continuous, sustainable, comprehensive management assessments that provide assurances that risk are properly identified and management; that HR activities are aligned with business objectives; and that compliance and governance requirements are being met.

Thus HR audits are used to protect and enhance the value of the organization’s human capital. HR audits also assess the alignment of HR management activities with organizational objectives, manage the organization’s human capital risks, identify and manage material risks; ensure compliance; assist in due diligence; and assess and test internal controls. Additionally HR audits ensure human capital adds value to the organization, ensure human capital makes the organization more competitive, help the organization achieve business objectives, and help the organization identify and manage human capital risks and opportunities.

As a result HR audits are increasingly being done of HR rather than by HR