Why your small business can’t afford NOT to have an HR audit!

An HR audit is a business’s way to check compliance with continuously changing rules and regulations, with regards to people risk within the business.

It is a systematic and comprehensive insight into business practices to do with employees, everything from how you hire them, train them, pay them, manage them, exit them and how you collect, store and use their information. It looks at what policies, processes, practices and systems are currently in place, are they compliant with regulations, what are your gaps and risk exposures, as well as how to mitigate and correct, and identifies the blind spots your business didn’t know it was exposed to.

Basically, an HR audit is important to mitigate the business risk of being liable for what might be deemed unfair employment practices and ensure you are compliant with your obligations under Fair Work Australia.

Why you can’t afford not to have an HR audit!

There are so many rules and regulations when it comes to employees, their rights and protections. Changes often happen and businesses are not always aware or updates. Not being aware or changing with the updates is not a defensible excuse when it comes to the crunch. Legal issues and conflicts can be very costly and often are ruled in favour of an employee rather than the employer. So, an HR audit is a proactive and cost-effective way to protect a business from unnecessary legal process and costs.

An HR audit is also very helpful way to identify areas for improvement with regards to performance and efficiencies within the business.

Who should conduct an HR audit?

It is often best to outsource an HR audit to an objective HR professional, who knows the legislation, what should be in place, and can quickly and easily spot your risk exposure. HR Professionals can both recommend how to fix it and support your business to do so.

So how often should a small business HR audit be conducted?

A full and comprehensive HR audit should be conducted initially. Following this, annual mini-checks that allow for course correction. It may seem overwhelming when you don’t know where to start or what to look for, but this is something that can be quickly and easily done with the right support!

At Businessary, we’ve found that it is often the small to medium businesses that are the most exposed and the least informed are these people risks. Often without contracts and polices in place, varying pay rates not consistent with minimum requirements, and no clear guidance on what to do if you need to discipline an employee, and let’s be honest… questionable filing system. It is such an easy predicament to find your business in. Most small business owners wear many hats and are spread very thin and without proper advice or support, you would not know these silent hazards your business faces.

We are passionate about helping small businesses protect what is important to them: their business, their people and their reputation.

If you are concerned about your employment practices, please give us a call! An HR audit is very affordable and something all small businesses need to protect themselves!