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HR Audit
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Audit of the HR Function of an organization and recommendations for improvement, in line with its strategic objectives and its needs for human capital. The audit includes all areas of HRM and can be extended to evaluation of the organizational structure and assessment of the senior managers. The service is particularly important in cases of Mergers and Acquisitions, when the due diligence process becomes complete with the addition of an HR Audit.

For an organization to maximize the contribution of its human capital, the Human Resources function should be performing at a high level. An HR audit evaluates an organization’s HR strategy, policies, systems, processes and practices, compares it with best practice and provides advice to help the HR function to be aligned with corporate strategy, to resolve issues, to increase service levels, to obtain flexibility and help the business to deliver its objectives.

Who needs an HR Audit:
• Organizations with people issues, e.g. high turnover, weak talent attraction and retention, low motivation, communication problems etc.
• Organizations who feel that their HR function does not reinforce effectively the business objectives
• Organizations who want to benchmark their HR management against their competition.
• Organizations who are preparing for an expansion, a workforce optimization, a merger or an acquisition.

What is included:
• A thorough check-up is a very effective HR tool. It is offered in two levels, basic and extended.
o Basic
 HR Strategy and Organization
 HR Systems and Practices
 HR Administrative issues
 Organizational Structure
 HR team assessment
o Extended, the above with the addition of
 Organizational Culture
 Management Assessment

Check lists per HR area
• HR Strategy and Organization
  o Role of HR in achieving corporate goals
  o HR deliverables
  o HR organization (structure and internal processes)
  o HR team skills assessment

• HR Policies and  Practices
  o Recruitment & Selection
  o Performance Management
  o Compensation and Benefits
  o Career Management - Succession Planning
  o Training and  Development
  o HR Metrics
  o Employee Relations
  o HR technology and information systems
  o Employee manual
  o Documentation

• HR Administrative Issues
  o Workforce Profile
  o Compliance with legal framework
  o Remuneration and Pay Administration
  o Financial Risks and Liabilities

• Organizational Structure (providing that it is an HR responsibility)
  o Organization chart  - Allocation of activities into functions, divisions, departments, jobs
  o Definition and allocation of responsibility, authority, accountability

• Organizational Culture (Beliefs and Values)
Identifies core values and philosophy, business climate, employee motivation and critical employee retention issues
o Diagnostic points
 Business direction and results
 Business drivers
 Infrastructure
 Organizational practices
 Leadership/management practices
 Work practices
 Use of technology
 Physical environment
 Cultural indicators and artifacts

o Tools and Methods
• Interviews with stakeholders (employees, management, shareholders, customers, competitors, suppliers)
• Employee/climate/motivation survey
• Retention Rates (turnover statistics)
• On-site observation

• Management Assessment
Particularly useful in cases of rapid expansion, workforce optimization, mergers, acquisitions etc.
o Areas checked
 Capabilities
 Motivation
 Potential
o Levels
 Executive team
 Divisional Heads
 Department Heads
o Tools & methods
 Hogan or KENEXA leadership evaluation tools.
 Cut-e ability tests
 Assessment centers


ICAP helps you to be an Employer of Choice!

Kostas Zoulias
Director of Human Capital Consulting
Tel: 210 7200 168
Email: hcc@icap.gr

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