Why External HR Audits Are Important

Human Resources Audits play a crucial role in reducing potential risks associated with "unfair employment practices.” At the Woohoo Co., we proactively identify and address areas of non-compliance with external human resources audits.

Legal disputes, stemming from mismanagement or regulatory oversights, can have severe financial and reputational repercussions. HR audits act as a preventative measure, ensuring organisations remain aligned with legal frameworks and ethical employment standards.

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How HR Audits Mitigate Risk

Using an external HR consultant for a human resources audit ensures that all HR policies, practices, and documentation align with local, state, and federal employment laws. This helps mitigate risks of legal disputes and ensures the organisation operates within a legally compliant framework.

Driving Cultural Alignment

Evaluating whether HR policies and practices support the company’s strategic objectives with HR audits is vital. This also aligns the organisation’s core values and culture.

HR processes should not only comply with regulations, but also contribute positively to employee engagement and organisational effectiveness best practices.

Some of the areas our HR audit covers 

  • Governance:  Employment contracts, awards, enterprise and confidentiality agreements, HR policies and processes, policy control document, processes for developing new policies, employee handbook, and employee and training records.

  • Organisation: Purpose, mission, values and organisation structure. This includes lines of authority, delegations, competency frameworks, position descriptions, leadership communication, and succession planning.

  • Recruitment and Induction: Recruitment strategy and policy, employee value proposition, screening and recruitment process, onboarding, and integration.

  • Training and Development: Training and development strategy.

  • Performance Management: Performance reviews, career development, and performance management process for underperformance.

  • Remuneration and Benefits: Payroll systems and processes, reward and recognition programs, and remuneration structure, salary guide, and classifications.

  • Employee Separations: Turnover percentage, HR department metrics and analytics, separation process, and absenteeism.

  • Culture: Employee pulse checks and surveys, EAP and employee well-being, gender balance, and diversity initiatives.

How An HR Audit Brings Meaningful Change

At The Woohoo Company, our HR services extend beyond compliance. We integrate external audits with cultural workshops to uncover blockers, enhance communication strategies, and define core values that shape organisational dynamics. 

Our proactive approach empowers businesses to embed values into everyday practices, ultimately fostering stronger relationships and effective team collaboration. An HR audit is more than a checklist - it’s an opportunity to align your operational practices with your organisational mission, creating a resilient and thriving workplace.

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Hear What Our Clients Say

  • "The Woohoo Company has provided invaluable HR function and cultural leadership, especially during a time of rapid growth and change. Their hands-on, practical approach is unlike other consultants. They don't just skim the surface – they get involved, build trust, and deliver real results."

  • "The Woohoo Company worked through the process with us very carefully and thoroughly, gave us the confidence in the process and were a pleasure to work with."

  • "What sets The Woohoo Company apart is their authenticity. They don’t just provide theoretical solutions – they take the time to understand our business at a practical level, helping us address real issues with people and culture. Their work has been transformational for us."

  • “From this, we gained invaluable feedback from our team around what we were doing well and what we could do better from morale, culture and work life satisfaction, safety and security perspective.”

More On External HR Audits

What are common HR audit findings?

External HR audits often result in findings of employee skill gaps, employee turnover rates, and changing demographics. External HR audits find strategic solutions to fill those gaps and prevent future turnover and retention, as well as implement hierarchy structures and organisation.

What are the different types of HR audits?

Types of HR audits can include succession planning, training and development, recruitment and hiring, policy and procedure, organisation, remuneration and benefits, governance, and culture.

What is included in an HR audit?

An HR audit includes an evaluation of current procedures, structures, systems, policies, and documents that are in place in an organisation. An HR audit will also include suggested areas of improvement.