What does an HR Audit do for your business?

Prevention is better than cure

An HR audit presents several benefits to your business. For the sake of clarity, let’s use an analogy we may all be familiar with: “health check-up” (a.k.a annual check). It’s a proactive means to create plans or control your health, rather than just respond to an issue after it arises. It’s very much the same with your business and an HR audit: it is one way you can be proactive when it comes to protecting your business.

An HR audit places a spotlight on how your business functions and which areas need to be addressed. It can help you to avoid the snowball effect of not dealing with a situation that has the probability to get bigger, messier, and potentially more expensive. Businesses are given a diagnostic of their business health and then a ‘prescription’ is given to address potential ailments. It’s a great way to save your money in the long run.

Who should do your HR Audit?

You may already have an internal HR team in your business that works well when it comes to your day-to-day HR tasks. But consider your employees’ perception once you announce that a thorough HR audit is to be conducted, that entails 1-1 interviews. There may be some hesitancy in delivering honest answers which can dilute the audit. An outsourced HR audit is a neutral solution where it may be perceived as less intrusive, conducted by an external service provider. Engaging an external HR consultant to perform the audit can provide an objective review allowing that spotlight to see all your trouble spots, with less hesitancy from your employees.

The other advantage of engaging an outsourced HR consultant is that as experts they can provide relevant recommendations on what you can do to overcome those trouble spots. If you are keen to go beyond that, then you can take your business to the next level and become a leader in your industry.

What kind of assessments does an HR audit do?


Ensuring you are meeting all your obligations as an employer under Australian workplace laws. It will identify the areas you are exposed. Areas such as:

  • Awards, pay, conditions;
  • Employment contracts;
  • Record keeping and payslips; and
  • Policies and Procedures (compliance-based)

How does it benefit your business?

Labour laws change frequently, and they can be complicated. By conducting HR audits, you are ensuring you are keeping up with the changes. You are utilising experts to guide you on how best to implement changes or correct your exposure areas to suit your business. They interpret the jargon into practical strategies, giving you peace of mind. You are meeting your obligations and mitigating the risk associated with non-compliance – costly fines and a negative impact on your brand.

HR practices, polices, procedures, and systems

Everything you do to attract, onboard/hire, manage, engage, develop, reward, retain and exit your employees. In other words, your employee lifecycle. It can also assess your people managers and their skills to develop their direct reports and deal confidently with people management challenges.

How does it benefit your business?

Any process or practice that impacts your employees sets the tone for how you value your employees. It sets a business apart as an employer who people want to work for.

Having the employee lifecycle reviewed can allow you to:

  • Assess your ROI – are those elements that set you apart actually a value- add to your business or a disservice?
  • Measure operational efficiency – helps you identify what works or doesn’t work and then how you can do it smarter, faster, better!
  • Assess your practices against industry standard or best practice to allow you to attract talent and improve your employee engagement and retention.

Create an environment where your managers have the skills to promote and influence a positive workplace culture.

Giving your employees a voice

Happy employees make for productive employees, that is essential for your bottom line and makes good business sense. A bespoke approach to an HR Audit is a HR Check – providing insight into what your employees think. The LMHR Health Check is a reliable, honest, and objective service that will give business leaders a clear roadmap to manage their businesses’ future success through people and processes.

Our HR Health Check services

At LMHR we believe in the significance of a healthy workplace culture. We have been helping businesses achieve this by providing highly regarded, results-based LMHR Health Checks and Compliance Audits to businesses who want to avoid the snowball and maximise the potential of their best asset – their people!  HR can be painful. We do the heavy lifting, so you can focus on running the show. Get help now. Contact us today.