HR documentation auditing

HR record-keeping audit is a professional analysis and evaluation of all personnel documents and processes within an organization. It helps identify and eliminate errors and weaknesses in HR processes, reducing the risk of potential issues. During the audit, documents are checked for compliance with legislation and the company’s internal policies, while the efficiency and accuracy of HR record-keeping processes are assessed.

Main stages of HR document audit:

1. Information gathering. This stage involves the initial collection of documents related to personnel management. Specialists check for the presence of all required documents and proceed to analyze them in the next stage. This includes employment contracts, orders for hiring, dismissal, violations, as well as internal policies and instructions for working with personnel.

2. Analysis. At this stage, a detailed analysis of all collected documents and related processes is carried out to ensure compliance with the legislation of Kazakhstan, the company's internal regulatory documents, and accepted personnel management standards. During the analysis, various discrepancies or issues that require correction may be identified.

3. Evaluation. After the analysis, the identified discrepancies and issues are assessed. Specialists evaluate the severity of the issues and any potential risks for the company due to these errors.

4. Development of recommendations. Based on the identified deficiencies, errors, and weak points, recommendations are developed to improve HR documentation and record-keeping processes. These recommendations may include proposals for changes in policies, procedures, document formats, or the introduction of new automation systems.

What is included in the HR documentation audit services

An audit can be either full or partial:

• Full audit: Conducted for all company employees without exception, covering the entire range of HR documentation and related business processes. The result of such an audit provides the most complete and reliable information about the current quality of the HR department's work.

• Partial audit: In this case, only the most important documents and processes are checked through a localized sampling. This review helps identify key systemic errors and violations of HR documentation and processes.

Based on the audit results, we offer two options:

• Restoration of HR documentation, development of procedures and policies for your company.

• Preparation and support during inspections by regulatory authorities.

The information management receives after the audit helps make decisions on further improvements to HR processes.

In addition to the internal audit of the company’s HR documentation, Unicon Outsourcing also offers an audit of HR processes, which helps assess the efficiency of HR record-keeping and the possibility of reducing costs in this area.

The consequences of improper HR record-keeping

Errors in HR record-keeping can have serious consequences for a company.

Here are some potential threats:

• Legal issues: Improper HR record-keeping can lead to violations of labor laws. For example, the absence of required internal documents, failure to comply with requirements for drafting employment contracts, recording working hours, or paying wages and other social benefits may result in fines from regulatory authorities and labor disputes with employees, including lawsuits.

• Financial losses: Incorrect HR accounting can lead to company losses. For example, overpayments or underpayments to employees due to errors in timekeeping or payroll calculations can significantly impact the financial health of the organization, and in case of lawsuits, compensation may be substantial.

• Reputational risks: Improper HR record-keeping can lead to a loss of trust from employees and the public. If employees feel their rights are not protected or notice errors in payroll, this can negatively affect the company’s reputation as an employer.

• Loss of efficiency and productivity: For example, insufficient attention to HR processes can result in delays in payroll, late preparation of necessary documents, or inadequate employee support, ultimately affecting the company’s overall performance.

Overall, improper HR record-keeping can lead to significant legal and financial problems for the company, as well as negatively impact its reputation and operational efficiency. A timely HR documentation audit helps avoid these issues.

Our advantages:

• International market experience: We know how to adapt documents and practices of international companies to the local legislation requirements of the country in which we operate. Our specialists will suggest optimal ways to solve business challenges in Kazakhstan.

• Risk reduction for the organization: By conducting an audit, we identify and correct all errors before regulatory authorities visit.

• Guaranteed success: We have successfully completed over 350 projects in the field of payroll calculation and HR administration.

HR document audit is an important modern tool that helps ensure compliance with current labor laws, improve HR management efficiency, and reduce various potential risks for the company.