HR audits and HR process analytics – an overview

HR audits - HR process analytics

In the dynamic world of HR management, HR Audits and HR Process Analytics are two indispensable tools for optimising and improving HR processes.
Both concepts play a crucial role, but differ in their approach and application. In this newsletter, we will explain the definitions, purposes and practical examples of these two important HR tools.

Author: Christina Haury

Table of contents

  • 1. HR audits – a definition
  • Why conduct HR audits?
  • Examples of HR audits
  • Audit steps + useful tools
  • 2. HR process analytics – a definition?
  • Why do we need it if there are audits?
  • Examples of an HR process analysis
  • Steps for implementation + tools
  • Summary

Let’s look at the topics in detail:

HR audits – a definition

An HR audit is a systematic review process in which a company’s HR practices, policies and procedures are examined to assess their effectiveness and compliance with legal and organisational standards.

Purpose and importance:

HR audits are used to identify strengths and weaknesses in HR processes. They help to minimise compliance risks, implement best practices and make strategic recommendations to improve HR operations. Through regular audits, organisations can ensure that their HR department is functioning optimally and supporting business objectives.

Examples:

A company conducts an HR audit and discovers that its recruitment processes are inefficient and do not meet current compliance standards. Based on the audit results, the company implements new policies and training to improve these processes and minimise legal risks. Another example could be the review of salary and compensation policies to ensure that they are fair and competitive and to make necessary adjustments.

Steps of an HR audit:

1. preparation: defining the objectives and scope of the audit, selecting the audit team.

2. data collection: gathering information through interviews, document review and observations.

3. analysis: evaluation of the collected data with regard to efficiency, compliance and best practices.

4. report preparation: Preparation of a detailed report with the results and recommendations.

5. implementation: Implementation of the recommended measures and continuous monitoring.

Tools used:

– Audit management software: help manage and conduct audits.

– Compliance software: support the monitoring of compliance with legal regulations.

– Interview and survey tools: to collect employee feedback and opinions.

HR process analytics – a definition

HR process analytics refers to the application of data analysis techniques to investigate and optimise HR processes. It focuses on collecting, analysing and interpreting HR data to gain insights into the efficiency and effectiveness of HR operations.

Purpose and importance:

The use of HR process analytics enables companies to make data-based decisions and realise continuous improvements in HR processes. By analysing process data, companies can identify bottlenecks and inefficiencies and take targeted measures to optimise processes.

Examples:

A company uses HR process analytics to analyse the onboarding process for new employees. The data analysis shows that the process takes too long and involves too many manual steps. Automated systems are then implemented to speed up the onboarding process and increase employee satisfaction. Other areas of application could be the analysis of fluctuation rates, the measurement of employee satisfaction or the evaluation of the effectiveness of training programmes.

Steps in HR process analytics:

1. data collection: collecting data from various HR systems and processes.

2. data cleansing: ensuring that the data is correct and complete.

3. analysis: using statistical methods and tools to analyse the data.

4. interpretation: Deriving findings and identifying opportunities for improvement.

5. measures: Implementation of improvement measures based on the results of the analyses.

6. monitoring: Continuous review and adjustment of processes to ensure long-term improvements.

Tools used:

– Data analysis software: Tools such as Microsoft Power BI, Tableau or QlikSense for visualising and analysing HR data.

– Process mining software: Solutions such as Celonis or Minit for analysing and optimising business processes.

– HR analytics platforms: Platforms such as Visier, SAP SuccessFactors or Workday offer integrated analysis and reporting functions for HR data.

Summary:

HR audits and HR process analytics are both essential tools for improving the HR function, but differ in their approach and application.

While HR audits provide a comprehensive review of HR practices, HR process analytics enable in-depth data analysis for continuous process improvement. Together, they help to increase the efficiency and effectiveness of the HR department and support the company’s success.

 

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Interested in further insights into HR transformation projects and process optimization?

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If you would like to know how you can easily carry out this process independently and digitally, we would be happy to show you our software solution, TraSy

Haury Solutions GmbH

September 2024