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5 Reasons Every Business Should Perform an HR Audit


Various HR functions on a wheel

Most organizations are familiar with Audits, commonly undertaken on the financial side of businesses. But an HR Audit that looks at your policies and procedures can uncover simple fixes that increase efficiencies, reduce liabilities, and help align your people with your business strategies for overall organizational success.

Here are five reasons why every business should consider performing an HR Audit:


Employee Relations & Engagement

It’s no secret that business culture drives employee engagement, and an engaged workforce drives success.

As a matter of fact,  companies with high employee engagement levels are 21% more profitable than those companies with low engagement. By reviewing your employee relations and engagement practices, you can tap into the mindset of your workforce to create more engaged employees who will help drive business success.


Recruitment, Selection & Onboarding

We all know that first impressions can go a long way. In today’s tight labor market, your recruitment and onboarding processes can be the difference between securing a talented employee or losing them to your competitors.

A review of your recruitment practices can help ensure you are well-positioned to attract and retain new talent in today’s challenging market.



Compensation is one of the leading issues for employers in 2022. With the Great Resignation underway, many companies are reactively trying to figure out why they are losing talent.

But by proactively reviewing your compensation practices, you can position your business competitively within the marketplace so that you can not only retain your existing workforce but attract new talent as well.



Staying up-to-date with evolving compliance regulations is a never-ending task.  Local, State, and Federal reporting requirements vary from business to business.

Ensuring your organization is following all relevant requirements and regulations puts you on the right side of compliance and ensures you are avoiding costly penalties, fines, and negative company press.


HR Technology and Metrics

HR professionals are increasingly relying on technologies that streamline their processes and provide valuable insights into their workforce. One of the frequent frustrations the XpanseHR team sees when working with clients is that they have fantastic HR technology partners, but don’t know how to fully leverage the technology to their advantage.

By assessing your HR technologies and Metrics, you can streamline your processes, free up your time, and benefit your organization’s bottom line.