People Matters HR Audit Study 2016

In a unique and benchmarking exercise in the Indian HR landscape, People Matters conducted the HR Audit Study and sought to understand the different dimensions, approaches and methodologies of HR audits conducted by Indian organisations. 72 organisations from different sectors participated in the survey and answered exhaustive questions regarding the procedure, frequency, type, length, benefits and processes of their audits. The responses were collected during a period of two months, namely, December’15 and Janaury’16.

The exercise revealed that although organisations are aware of the importance and impact of carrying an HR audit regularly, but 96% of the organisations did not have dedicated HR resources to routinely conduct these audits. Furthermore, 48% of the organisations do not perform audits to establish an ‘early warnings system’, thereby decreasing the efficacy of the exercise and the role of HR in identifying business risks before they escalate into crises. The thrust of the audits has been to examine organisational compliance with regulation, compensation and payroll, record-keeping, and recruitment, as over 80% of the organisations audited these processes.  People Matters HR Audit Study is an attempt to identify and understand the present status and outlook of Indian organisations in executing HR audits, and whether the exercise is carried out in a manner wherein the outcome helps organisations encounter business challenges.