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HR Audit Questions



Company information
Company name: Business unit name (if applicable): Address: Street City State/Province Zip/Postal code Country Telephone number: Facsimile number: Fiscal year-end (month/day): Company contacts: Name Position Phone

Name Position Phone

Industry information
Industry classification :


1. What was total revenue for the business unit for the most recently completed fiscal year? 2. What were total assets for the business unit for the most recently completed fiscal year? 3. How many locations exist within the business unit? (Include all operating and administrative locations which perform HR activities.) 4. Is the business unit a publicly-held or a privately-held entity? 5. What was the pre-tax income for the business unit for the last fiscal year-end?

Section 1. Business and Human Resources Strategy

6. What is the company business strategy?

7. Does the company business strategy link to Human Resources (HR)? Please describe. 8. What is your companys HR Strategy? Is the HR strategy aligned with the companys strategy? 9. Who develop the HR Strategy? Do you assemble a cross-functional team to develop the HR strategy? 10. What does HR do in supporting the implementation of organizations strategy? 11. Determine how the human resources department will support strategic goal and impact organization performance? 12. Do you perform a gap analysis of current versus desired organizational behavior and performance, and develop strategy to close the gap? 13. Outline the HR departments present role, list its function and evaluate its effectiveness?


Please describe the Human Resources Policies of the company. If possible, please specify the policies for each HR


Section 2. Human Resources Policies

function (recruitment & placement, training & development, performance appraisal, etc) How and to what extent do the policies support the HR department in executing the strategy?

3. Please describe the Human Resources Program of your company.

4. Do these programs align with your Human Resources Policies?


1. Are your workforce formation fits the companys business

objectives? 2. Does the company have manpower plan? 3. How do you create a manpower plan? 4. Do you develop a competency-based approach to staffing? 5. Does every position have competency/requirement? 6. Do every employee understand competency/requirement needed to perform a job/position? 7. Does this company have a clear job description for each job/position? And does each have clear competency map? 8. What is the total number of all employees (headcount) at the business unit? managerial level supervisory level staff/operator level total : : : :

Section 3. Manpower Planning

8. What is the total number of employees (headcount)for the human resources department? number managerial supervisory staff total

1. Answer the following in relation to the job offer cycle: a. What was the total number of offers made in most recent Section 4. complete fiscal year? Recruitment and b. What was the total number of Selection offers accepted in most recent complete fiscal year? c. What was the average time (in days) from job requisition to extension of job offer?

2. Please complete the following question with the number of entry and non-entry level positions filled internally and externally during the most recent complete fiscal year: internal a. Entry b. Non-entry 3. What were your total recruiting costs for internal external external


the previous year? 4. How many positions (job titles) exist across the organization? 5. How is the recruitment process? 6. Does it eliminate unsuitable applicants early and focus on promising candidates ? 7. How is the recruitment methodology? Does it attract desirables workers? Does it match capabilities of candidates with competency requirement for positions? 8. Do you use executive search services to help you in the recruitment area? 9. How do you describe the qualification requirements for the vacant positions? 10. Who makes the hiring decision?

1. What kind of programs does exist for employee retention? Are they sufficient?

2. Does the company develop attractive benefit program that

can retain employees? 3. Do you track your staff turnover? What is your turn over rate this fiscal year?

Section 5. Employee Retention

1. Does the company have a clear development or training plan/strategy ?

Section 6. Training and Developm ent

2. What is the current training and development system for employees? 3. What was the total number of training hours in the previous year for all employees? Managerial Supervisory : Staff : :

4. Of the total amount of training hours offered, what percentage was: Percentage a. Formal classroom b. Computer-based c. On-the-job d. Self-study e. Off-site 5. What was the total cost for training in the previous year?


6. How do you conduct Training Need Analysis (TNA)? 7. How do you translate the TNA into a Training Program? 8. What kind of training programs offered to employees? 9. Do managers and employees find the training program relevant to their needs? 10. How do you evaluate training effectiveness?

11. Does each employees have Individual Development Plan(IDP)? How are individual development
plans and needs identified? 12. Does IDP work effectively? If it doesnt work effectively, what is the cause of it?

1. What types of performance management systems do you use? Please describe. 2. Does it work effectively? If not, why? 3. Do you give constructive feedback to increase employees performance? 4. Do you include a customer satisfaction element in performance evaluations?

Section 7. Performance Manageme nt

1.What is the current compensation system in your company? Please describe

Section 8. Compensation and Reward

2.Do you offer compensation plans that provide a stable base with variables linked to performance? 3.Do you develop compensation plan that support strategic goals? 4.Who design the current compensation system? Does the

BOD / HR Department involve in formulating pay strategy?

5. 6.
7. 8. 9.

Is the compensation system reviewed periodically? How do you evaluate your pay

structure and compensation policy at least annually and adjust it when needed? Do you compare the companys compensation programs with the market rates? Does the Do you set up procedures that ensure company compliance with all applicable payroll Please describe the current benefit and allowance system of your company? (describe in For all employees in the organization (include both part-time and full-time employees in

current compensation system competitive? laws needed? detail if there is differences among upper / middle / lower level of management / staff?) all departments), what is the:


a. Total base pay b. Total overtime pay c. Total variable pay d. Total payroll cost

10. What is the total benefits cost (not including benefits administrations costs) for all employees in
the organization? (Include both part- and full-time employees in all departments)?

1. What is the current system for Career Development in your company? Please describe. 2. Does it work based on meritocracy and fairness? 3. How does this current system apply to the employee individually? 4. What is the current system of succession planning? 5. Do succession plan exist for all critical positions? 6. What percentage of management positions at the following levels have succession plans in place? percent a. Executives b. Senior mgt. c. Middle mgt. 7. What are the criteria for the successors? 8. Does the succession planning system work effectively? If not, why?

Section 9. Career Developm ent and Successio n Planning

Section 10. Industrial Relation

1. Do you build a culture of inclusion that promotes labor and management as partner in business success? How? 2. What problems does the company encounter in labor relation issues? Do you have labor union? Does the labor union represent the employees well? 3. How do you solve labor relation (LR) issues? 4. Do employees give feedback to solve IR issues? Do you design grievance procedure for resolving employees problem?

5. Do the company actively communicate LR / IR procedure to all employees? 6. Do you encourage employees to play a proactive role in improving the labor-management relationship?


1. What IT systems and infrastructure do you use to

support your HRIS? Does it work effectively?

2. How can the IT system be used to support the HR

Strategy? 3. How many human resource information databases your company have?

Section 11. Human Resources Informatio n System

1. What is the current retirement policy?

Section 12. Retirement

2. Does your company have Pre-Retirement Preparation Program for their employees? 3. Please indicate the number of employees participating in retirement plans. Managerial :


: Staff :

4. Please indicate the total contribution (in terms of percentage of total compensation) into retirement plans as outlined below: managerial a. By employee b. By the organization supervisory staff

1. Do you create an environment of open communication between employees and management. 2. How do managers and employees perceive the effectiveness and integrity of current communication culture? 3. Do you capture the creative insight of employees by soliciting their ideas for improvement? 4. Do you create environment to delegate decision making to the lowest level possible? 5. What kind of media your organization uses to communicate to the entire workforce on a regular basis?

Section 13. Employee Communic ation


6. What mechanisms do you have for obtaining employee feedback on a regular basis?

1. How much the cost for the following items:

Section 14. Human Resources Cost

Human resources department direct labor cost (Wages, overtime, and benefits.) Human resources department operating expenses (Supplies, training, and other locally controllable expenses not including rent, depreciation, or allocated overhead

expenses.) Outsourcing fees, if any (Contract fees including annual fees and monthly operating charges.) Contracted services cost (Temporary and contract labor). Data processing equipment and facilities to support the human resources department (Include the cost of providing computer processing, software, hardware, ) Total human resources department cost (Total of questions 1 through 5)

Note from www.exploreHR.org: If you think that the tools (including this HR Audit Guideline) in our site are useful, then please share and communicate the existence of our site (www.exploreHR.org) to your friends. Also, please visit our site on a regular basis because we update site contents regularly. Thanks. Evaluate Reaction: Are people happy with the training inputs? Evaluate Learning: What do people remember from the training session? Evaluate Behavior: Do people use what they know at work? Evaluate Results: What are the outcomes of applications on the job over a period fo time? Evaluate Financial Value: What is the impact of training on the bottom-line financials?

number of years established organisational size regionalization and globalization trends The source of MNCs parent companies The extent and source of expatriate labour in the surveyed MNCs; The use of regional headquarter for staff training


1. Reaction - What does the learner feel about the training? 2. Learning - What facts, knowledge, etc., did the learner gain? 3. Behaviors - What skills did the learner develop, that is, what new information is the learner using on the job? Results or effectiveness - What results occurred, that is, did the learner apply the new skills to the necessary tasks in the organization and, if so, what results were achieved
Training Services Evaluation

How satisfied are you: Very Satisfie Neutra Dissatisfie Very l d Dissatisfie d

Satisfie d d With the appropriatenes s of courses to your needs?

That (Company) training personnel are sufficiently knowledgeable and professional?

With the location and quality of our training facility?

With (Company)s communication of the training packages available to your




With (Company)s training courses overall?

Please tell us what (Company) should do to improve the quality of its training services?

About Us...

(Company) understands the service needs of my department.

Strongly agree


Neutral/Not sure


Strongly disagree

Overall, how satisfied are you with the amount of communication between



you/your department and (Company)s?

Very satisfied


Neutral/Not sure


Very dissatisfied

Overall, the quality of (Company)s sales organization's service is:


Very good




Overall, the value of services compared with the price paid is:


Very good






Recommend Us...

Would you recommend (Company) services to colleagues or contacts within your industry?



Not sure

P.S. Questions to be asked during feedback1. Was the objective Met : Was the training objective shared with you & did it meet your expectations 2. Training Material : Were the training aids helpful in understanding the subject 3. Trainer Knowledge: Did the trainer / faculty answer all your queries to your satisfaction, Can also ask for trainers rating on a scale of 1-5 with supportive comments 4. Was the session helpful for your to perform your job effectively 5. Will you consult the trainer for any queries, suggestions in future (to check the approachablity factor, trainer knowledge etc) 6. Training Infrastructure 7. Time allotted

As Kirkpatrick, among others, teaches us, even well-produced reactionnaires do not constitute proper validation or evaluation of training.



For effective training and learning evaluation, the principal questions should be: To what extent were the identified training needs objectives achieved by the programme?

To what extent were the learners' objectives achieved?

What specifically did the learners learn or be usefully reminded of? What commitment have the learners made about the learning they are going to implement on their return to work?

And back at work, How successful were the trainees in implementing their action plans?

To what extent were they supported in this by their line managers?

To what extent has the action listed above achieved a Return on Investment (ROI) for the organization, either in terms of identified objectives satisfaction or, where possible, a monetary assessment.

Organizations commonly fail to perform these evaluation processes, especially where: The HR department and trainers, do not have sufficient time to do so, and/or

The HR department does not have sufficient resources



people and money - to do so. Obviously the evaluation cloth must be cut according to available resources (and the culture atmosphere), which tend to vary substantially from one organization to another. The fact remains that good methodical evaluation produces a good reliable data; conversely, where little evaluation is performed, little is ever known about the effectiveness of the training.

evaluation of training

There are the two principal factors which need to be resolved: Who is responsible for the validation and evaluation processes?

What resources of time, people and money are available for validation/evaluation purposes? (Within this, consider the effect of variation to these, for instance an unexpected cut in budget or manpower. In other words anticipate and plan contingency to deal with variation.)

4. Does the company have a clear development or training plan/strategy ?

Section 6. Training and Developm ent

5. What is the current training and development system for employees? 6. What was the total number of training hours in the previous year for all employees?



Managerial Supervisory : Staff :

4. Of the total amount of training hours offered, what percentage was: Percentage a. Formal classroom b. Computer-based c. On-the-job d. Self-study e. Off-site 13. What was the total cost for training in the previous year? 14. How do you conduct Training Need Analysis (TNA)? 15. How do you translate the TNA into a Training Program? 16. What kind of training programs offered to employees? 17. Do managers and employees find the training program relevant to their needs? 18. How do you evaluate training effectiveness?

19. Does each employees have Individual Development Plan(IDP)? How are individual development
plans and needs identified? 20. Does IDP work effectively? If it doesnt work effectively, what is the cause of it?

Training and development activities can be evaluated before, during and after the activities. Consider the following very basic suggestions:

Before the Implementation Phase

Will the selected training and development methods really result in the employee's learning the knowledge and skills needed to perform the task or carry out the role? Have other employee's used the methods and been successful? Consider applying the methods to a highly skilled employee. Ask the employee of their impressions of the methods. Do the methods conform to the employee's preferences and learning styles? Have the employee briefly review the methods, e.g., documentation, overheads, etc. Does the employee experience any difficulties understanding the methods?

During Implementation of Training

Ask the employee how they're doing. Do they understand what's being said? Periodically conduct a short test, e.g., have the employee explain the main points of what was just described to him, e.g., in the lecture.



Is the employee enthusiastically taking part in the activities? Is he or she coming late and leaving early. It's surprising how often learners will leave a course or workshop and immediately complain that it was a complete waste of their time. Ask the employee to rate the activities from 1 to 5, with 5 being the highest rating. If the employee gives a rating of anything less than 5, have the employee describe what could be done to get a 5.

After Completion of the Training

Give him or her a test before and after the training and development, and compare the results? Interview him or her before and after, and compare results? Watch him or her perform the task or conduct the role? Assign an expert evaluator from inside or outside the organization to evaluate the learner's knowledge and skills? a variety of the methods as follows: Follow-up Questionnaires Administer follow-up questionnaires to uncover specific applications of training. Participants provide responses to a variety of types of open-ended and forced response questions. Use questionnaires to capture both Level 3 and Level 4 data. The example below shows a series of level 4 impact questions contained in a follow-up questionnaire for evaluating an automotive manufacturers sales training program in Europe, with appropriate responses. HRD practitioners can use the data in an ROI analysis Program Assignments Program assignments are useful for simple, short-term projects. Participants complete the assignment on the job, using the skills or knowledge learned in the program. Report completed assignments as evaluation information, which often contains Level 3/Level 4 data. Convert Level 4 data to monetary values and compare the data to cost to develop the ROI Action Plans Developed in training and development programs, action plans on the job should be implemented after the program is completed. A follow-up of the plans provides evaluation information. Level 3/Level 4 data are collected with action plans, and the HRD staff can develop the ROI from the Level 4 data. Performance Contracts Developed prior to conducting the program and when the participant, the participants supervisor, and the instructor all agree on planned specific out-comes from the training, performance contracts outline how the program will be implemented. Performance contracts usually collect both Level 3/and Level 4 data and are designed and analyzed in the same way as action plans. Performance Monitoring As the most beneficial method to collect Level 4 data, performance monitoring is useful when HRD personnel examine various business performance records and operational data for improvement. The important challenge in this step is to select the data collection method or methods that are appropriate for both the setting and the specific program and the time and budget constraints.

Isolating the Effects of Training



Isolating the effects of training is an often overlooked issue in evaluations. In this step of the ROI process, explore specific techniques to determine the amount of output performance directly related to the program. This step is essential because many factors influence performance data after training. The specific techniques of this step will pinpoint the amount of improvement directly related to the program, increasing the accuracy and credibility of the ROI calculation. Collectively, the following techniques provide a comprehensive set of tools to tackle the important and critical issue of isolating the effects of training. Control Group use a control group arrangement to isolate training impact. With this technique, one group receives training while another similar, group does not receive training. The difference in the performance of the two groups is attributed to the training program. When properly set up and implemented, control group arrangement is the most effective way to isolate the effects of training. Impact Estimates When the previous approach is not feasible, estimating the impact of training on the output variables is another approach and can be accomplished on the following 4 levels. Participants estimate the amount of improvement related to training. In this approach, provide participants with the total amount of improvement, on a preand post-program basis, and ask them to indicate the percent of the improvement that is actually related to the training program. Supervisors of participants estimate the impact of training on the output variables. Present supervisors with the total amount of improvement, and ask them to indicate the percent related to training. Senior Managers estimate the impact of training by providing an estimate or adjustment to reflect the portion of the improvement related to the training program. While perhaps inaccurate, having senior management involved in this process develops ownership of the value and buy-in process. Experts estimate the impact of training on the performance variable. Because these estimates are based on previous experience, experts must be familiar with the type of training and the specific situation.

Customers sometimes provide input on the extent to which training has influenced their decision to use a product or service. Although this approach has limited applications, it can be quite useful in customer service and sales training.

Converting Data to Monetary Values

A number of techniques are available to convert data to monetary values; the selection depends on the type of data and the situation. Convert output data to profit contribution or cost savings. With this technique, output increases are converted to monetary value based on their unit contribution to profit or the unit of cost reduction. These values are readily available in most organizations and are seen as generally accepted standard values. Calculate the cost of quality, and covert quality improvements directly to cost savings. This standard value is available in many organizations for the most common quality measures (such as rejects, rework, and scrap). Use the participants wages and employee benefits as the value for time in programs where employee time is saved. Because a variety of programs focus on



improving the time required to complete projects, processes, or daily activities, the value of time becomes an important and necessary issue. The use of total compensation per hour provides a conservative estimate for the value of time. Use historical costs when they are available for a specific variable. In this case, use organizational cost data to establish the specific value of an improvement. Use internal and external experts, when available, to estimate a value for an improvement. In this situation, the credibility of the estimate hinges on the expertise and reputation of the individual. Use external databases, when available, to estimate the value or cost of data items. Research, government, and industry databases can provide important for these values. The difficulty lies in finding a specific database related to the situation. Ask participants to estimate the value of the data item. For this approach to be effective, participants must understand the process and be capable of providing a value for the improvement. Require supervisors and managers to provide estimates when they are willing and capable of assigning values to the improvement. This approach is especially useful when participants are not fully capable of providing this input or in situations where supervisors or managers need to confirm or adjust the participants estimate. Converting data to monetary value is very important in the ROI model and is absolutely necessary to determine the monetary benefits from a training program. The process is challenging, particularly with the conversion of soft data, but can be methodically accomplished using one or more of the above techniques.

Tabulating Program Costs

The other part of the equation in a cost/benefit analysis is the cost of the program. Tabulating the costs involves monitoring or developing all of the related costs of the program targeted for the ROI calculation. Include the following items among the cost components. Cost to design and develop the program, possibly prorated over the expected life of the program Cost of all program materials provided to each participant Cost for the instructor/facilitator, including preparation time as well as delivery time. Cost of the facilities for the training program. Cost of travel, lodging and meals for the participants, if applicable. Salaries, plus employee benefits of the training function, allocated in some convenient way.

In addition, specific cost related to the needs assessment and evaluation should be included, if appropriate. The conservative approach is to include all of these costs so that the total is fully loaded.

Calculating the ROI

Calculate the ROI using the program benefits and costs. The BCR is the program benefits divided by costs:



BCR = program benefits / program costs (Sometimes this ratio is stated as a cost/benefit ratio, although the formula is the same as BCR). The net benefits are the program benefits minus the costs: Net benefits = program benefits program costs

The ROI uses the net benefits divided by programs costs: ROI (%) = net benefits / program costs x 100

Use the same basic formula in evaluating other investments where the ROI is traditionally reported as earnings divided by investment. The ROI from some training programs is high. For example, in sales training, supervisory training, and managerial training, the ROI can be quite large, frequently over 100 percent, while ROI value for technical and operator training may be lower. Kindly share any materials or attachments if you have on the below mentioned topics. TNA 1) Organisational Analysis 2) Task Analysis 3) Individual Analysis DESIGN OF Training Programs 1) 2) 3) 4) 5) 6) 7) Factors For Fixing Duration Selection of Participants Choice of Trainers Course Contents Inhouse Arrangements and outsourcing E Learning Training for Trainers

DELIVERING TRAINING PROGRAMS 1) 2) 3) 4) ICE BREAKING GAMES Relevance of Culture of Participants Layout Facilitating Interactions Audio Visual Aids

EVALUATION OF TRAINING PROGRAMS 1) Micro and Macro Levels 2) Role of Trainer and Line Manager in Evaluations