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The Importance of HR Audits

It is recommended that businesses conduct regular HR audits as a proactive measure to ensure they are compliant with South African legislation as well as following best practices. HR audits are important as they assist in identifying HR successes as well as deficiencies. An annual HR audit should be incorporated into an HR department's activities and the result can be used to develop improvements to the departmental functions as well as your organisation's workforce.


HR audits are not only completed at organisations with existing HR structures but also in smaller companies that do not have an official HR department. An HR audit can assist these smaller organisations in ensuring they are on the right track. The audit can assist in detailing what the organisation's HR department is missing, such as specific policies, salary benchmarking, required skills and equity reports etc. The HR audit can ensure that your company is in line with its competitors and can assist in attracting top talent through competitive employee benefits.


Key aspects to review in the audit:

  • HR policies and procedures

  • Employment Equity and Skills Development submissions

  • Company organogram

  • Job descriptions

  • Succession plan/key positions

  • Employee file audit (key documentation present)

  • Remuneration (overtime, commission and benefits)

  • Recruitment strategy

  • Health and safety compliance

At Employment Concepts, we assist with in-depth HR audits. Our industry experts ensure full compliance with South African Labour Legislation and mitigate the risk of labour department audit findings or fines. If you believe that your organisation requires an HR audit, contact us for assistance.

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