Checklist for HR Audit

Companies conduct HR audits for several reasons. Two main focuses of an audit are legal compliance and best practices. HR departments may take this time to recognize weaknesses and strengths in their processes and make necessary changes. One way to ensure that all important areas are included is to develop an HR checklist. Use of the checklist will maintain focus and serve as a record of the results.

Employee Records

Audit checklists should include questions about the use and storage of employee records. There are legal requirements associated with the hiring of employees and maintenance of records. For example, you must keep information regarding health-related issues separate from other files to protect the employee’s privacy. You must file necessary immigration information for each new hire and maintain copies of certain documents. One checklist question may be where and with whom these files are being held.

Policies and Procedures

You should have clearly defined policies and procedures in writing and you should present them to all employees. In order to prevent lawsuits regarding such actions as wrongful termination or discrimination, you should conduct a new employee orientation. Explain company policy and the discipline process to all employees and have them sign a waiver of acknowledgment. HR audit checklists should contain information about when the orientation is conducted and what is included.

Company Benefits

Employee benefits are a major part of HR responsibilities, and it’s important to keep records of the medical and dental plans you offer while watching associated costs. Audit lists with questions about programs offered with the requirements and limits for coverage can provide a comprehensive view of what is working for the company and the employee. This information is helpful when making decisions about what programs offer the best return on benefit investment.


How a company pays employees is critical to its performance and success. HR is responsible for recruiting and hiring the most skilled employees the company can afford. You must maintain information about salaries, bonuses and other types of payment. For an HR audit, use checklists containing questions about determining factors for salaries, when employees are eligible for increases and who is responsible for managing the process to help evaluate areas for improvement.