Types of HR Audits: Internal vs. External

Human resource audits check and appraise a company’s or organization’s HR department. This comprehensive examination looks at current policies, practices, procedures, strategies, documentation, structure, skills, and systems to identify needs for improvement and enhancement of the HR function. Some rules and regulations continuously update, and this review ensures that a company or organization maintains compliance with those changes. There are two types of HR audits: internal and external audits. A business can choose which process they want to proceed with.

Internal vs. External HR Audits

When you must conduct an audit, an organization or company can choose to have the process done by someone in house or via an external auditor. There are pros and cons to each type of HR audit, and a company or organization can choose the option that best suits their needs.

Internal audits are cheaper, as they are done by an employee who already works for the business. However, someone working internally has a certain level of bias that can affect the accuracy of the results. These employees are not specialists in the field and therefore do not deliver clean reporting and may not want to deliver results favoring the organization out of fear for their position.

Companies generally prefer external auditing, as it delivers judgment without favor or prejudice. Businesses hire external auditors for their expertise in the field and their lack of connection with the organization. This option is typically more costly but delivers results that give a true picture of the HR department within an organization or company.

The Christopher Group HR Audits

When an organization needs an external HR audit performed, turn to The Christopher Group—it’s one of the most respected and largest boutique HR executive search firms in the United States. We perform industry-leading HR audits for many successful organizations and companies across the country. We guarantee professional, discreet, timely, and accurate results. Learn more about the types of HR audits we offer and the process today.