Why Conducting an HR Audit is a Smart Move

 

As Organisational Psychologists working across New Zealand, it’s not uncommon for us to see strategic people initiatives and organisational development take a back seat. And it’s understandable—when you get focused on day-to-day making time to take that helicopter view to review your people strategy, policies and processes can easily slip down the list of priorities.

But here’s the thing—it’s incredibly worthwhile, and conducting a Human Resource or People audit is one effective way to achieve this. A well-executed audit helps identify potential risks before they become bigger problems, ensures your people processes and systems are aligned with legislation and best practice, and also identifies ways to create a more engaged and high-performing workplace culture. Research indicates that aligned systems are also associated with improved organisational performance, higher levels of psychological safety and trust in leadership, reduced staff turnover, increased employee satisfaction, and greater productivity.

For many organisations, it’s not simply about ticking boxes; it’s about being proactive.  Many of our clients—from aviation and insurance to communications, the primary sector, and government—have told us that the outcomes of our audits have enabled them focus on what’s strategically important. Think of it as putting a fence at the top of the cliff, rather than relying on the ambulance at the bottom.

What is an HR Audit?

Put simply, an HR audit is a structured review of your current HR systems, practices, documentation, and strategies. It’s designed to highlight what’s working well, what’s not working well, and identify  recommendations for improvement.  To name a few this might include reviewing onboarding and recruitment processes, employment agreements and compliance with current NZ employment legislation, policies and procedures, performance and development practice, talent management practices and so on.

Final Thoughts

An HR audit can be one of the simplest, most effective ways to strengthen your foundation. It doesn’t need to be overwhelming. In fact, most clients find it incredibly helpful to have a fresh set of eyes across their systems—along with clear, prioritised actions they can implement.

If you’re interested in exploring what an HR audit might look like for your business, feel free to get in touch.