HR AUDIT AT HCL

Submitted by-
   SRISHTI BHATEJA (19021141116)
Contents
1. Background
2. Audit objective, scope, approach, criteria
3. Results of Audit
4. Observation and recommendation
Background
A HR Audit is a comprehensive method to review current human
resources policies, procedures, documentation, and systems. This thorough
review helps to identify needs for improvement and enhancement of
the HR function. HCL’s primary purpose of HR Audit s is to ensure that
organization’s practices , policies and processes are mature and meet their
expresses intent . In 2013, Woolworths selected the SAP HCM application
platform.

Audit objective, scope, approach, criteria

The overarching objective is to give an employment experience that allows
people to be successful. Also, given the scale (1,05,000+ employee base) and
scope (over 30 countries) of the organization, audits help in ensuring service
deliver in line with specific statutory requirements Due to rapid growth in
service sector, increase in environmental variability and degree of competition,
the entire gamut of HR functions is audited -including talent acquisition, talent
development, rewards, performance management and rewards. Processes
with a financial (e.g., pensions) and statutory (e.g., immigration laws)
implication are also frequently audited.
In order to investigate the role of HR Auditing and area of HR functions that
should be audited to meet the business goals. To examine the impact of HR
alignment with business goal on the HRM department and over all
organizational performance. To develop techniques that help in collecting and
extracting critical HR information to improve the quality and effectiveness of
HR auditing. HR Audit will help to examine the level of practice and indicate
the main success and failure factor associated with human resource
management in HCL. It also helps in designing further strategies for increasing
efficiency. They consider the people- process – technology framework in
reviewing audits’ impact. That is, they end up using insights from the audits to
inform structural or people-related changes (e.g., centralizing the contracting
function), process design changes (e.g., instituting quality assurance checklists
within recruiting teams to bring consistency), or technology related changes
(e.g., automating a procedure).
Audits happen at multiple levels within the organization. At an individual level,
people self-certify their performance. At the functional level, there are a series
of service and quality assurances. At organizational level, there is a service
excellence construct which has a specific set of process reviews and process
design checks.

Individual self- At functional level At organization

certify their service and quality level service
performance check excellence

Results
1. Need to make employees aware of what’s in it for them
2. Fully understanding custom and practice at sites relating to time and
attendance solution
3. Process standardization is needed in order to meet business
requirements
 4. Senior leader sponsorship -Business, SAP and program partners –
important to achieve desired outcome
5. Differences between a cloud based and on-premise solution (there
are differences and it is important to understand them to achieve
them)

Recommendations

1. Take steps to enhance the size, role, and independence of the audit
committee
2. Take steps to enhance internal controls with respect to policy
compliance
3. Ensure availability of proper tools including complaint tracking
software to keep better track of complaints, personnel records, and
employee data.
All settlement and separation agreements with employees should be
logged and tracked to ensure proper record keeping
4. Reformulate its written cultural values to ensure they reflect more
inclusive and positive behaviour.
5. Restate the values with significant input from employees
6. Define the values in a manner which is more accessible and easily
understood by employees
7. Reduce the overall number of values and eliminate those that have
been identified as redundant
8. Exhibit and model inclusive leadership
9. Combat implicit bias
10.Fundamental skills necessary for effective management as senior
leader
11.Goal setting, leading employees, and corporate controls
12.Measure senior leaders on such defined competencies on an annual
basis and is part of their performance review process
13.Mandatory training to all HR personnel on effective handling of
complaints. 
14.Mandatory training for all managers – especially new and first-time
managers on areas of 
 Diversity, inclusion and unconscious bias, How to communicate with
all employees, Maintain proper managerial relationship, Provide
constructive feedback

15.Evaluate employee performance according to company values

16.Learn how to handle general HR issues
17.Learn how to identify legal issues and how to evaluate them to legal
counsel
18.  All employees who routinely interview employees should go through
mandatory training on interview skills, how to conduct inclusive
interviews and unconscious bias. 
19. Standardize the interview process including the kind of questions
asked, evaluation of candidate and method of providing feedback.
Identify or hire an owner for all HR policies who is responsible for
drafting new and updating existing policies Senior leadership to
publicly support and embrace HR not just as a recruiting organization
but an organization that works to protect and retain people. 
20.Follow through on recommendations of HR to ensure that it’s seen as
vested with true authority. 
21.Adopt zero tolerance against sustained complaints of discrimination
and harassment. Ensure appropriate processing and tracking of
complaints. Invest in HR tools including complaint tracking software
which is robust, secure and accessible .Establish protocols for
escalations of complaints to ensure legal risk is being managed
properly. 
LEARNING FROM THE VIDEO
1. Professor T.V. Rao talks about action learning approach. This approach starts with
identifying the problem and specifying the goal. In order to achieve the desired goal
a diverse cross functional team of 5 members with facilitator is brought together and
diagnosing and experimentation starts. The learning takes place by acting on the
recommendations given the cross functional team. The main advantage of this
approach is it does not gets documented anywhere and at the same time helps in
making a difference.
2. Accenture audit and compliance tool – It helps in meeting legal and business
growth requirements. at the same time, it helps in maintaining transparency keeping
in mind the individual needs of business.it helps in maintaining sensitive personnel
information and manage data efficiently.it reduces the cost and risk of data
management with visual graphs. It is fully integrated with SAP ERP human capital
systems.
3. 7 simple steps to conduct HR audits – To resolve issues underneath the surface,
protection from law suits
A) Organization – Take care of the vision and mission statements, policies and
procedures. Talking to managers about the organization and how is it working
b) Hiring process- this involves taking care of the job descriptions and specifications.
taking care of the application process, availability of tools, onboarding process, offer
letter is appropriate
c)Compensation – a proper plan matching the market demand to face the
competition, equal pay act, hourly employees and exempt employees are paid
appropriately. Plans should be appropriate with mission
d)Employee Development and relation-performance evaluation plan, keeping in
check at the training needs, issues with sexual harassment, compliance process,
open door policy, retaliation policy.
e) Safety – awareness of the safety program, reporting of all the injuries, all safety
policies are known to employees
f) Record keeping – Under this it is that whether Disciplinary process are consistent
and recorded, personnel files are legal, keeping records short and timely available.
g) Analysis – Organizing the above documents and forming a checklist to analyze
each and every component in order to complete monitoring and reviewing the entire
organization. Segregating data into high, medium and low risk.
4. HR Audit – HR audit is a process of verification of HR practices, policies followed all
over the organization. In order to take necessary steps due to volatile business
environment HR audit develops a framework. It is properly documented and is kept
for reference by the company’s HR in order to know the satisfaction level of
employees , achievement of organizational goals and to make future plans.