HR Audit Services

human resources auditing

What Is an HR Audit?

An MMC HR audit is an evaluation of an organization’s Human Resources practices designed to ensure legal compliance, operational efficiency, and strategic alignment. This comprehensive review covers various facets, including compliance with employment laws, the effectiveness of HR policies and procedures, talent management, employee relations, and compensation and benefits structures. By identifying strengths and weaknesses in these areas, an HR audit empowers organizations to make informed decisions, reduce legal risks, and optimize HR processes to better align with their strategic goals.

The benefits of an MMC HR audit are manifold. It serves as a risk mitigation tool by addressing compliance issues, enhances operational efficiency through process optimization, and fosters strategic alignment by ensuring that HR practices contribute effectively to overall organizational objectives. The continuous improvement aspect of HR audits enables organizations to stay agile in the face of changing business environments, positioning them for long-term success and adaptability in the dynamic landscape of the modern workplace.

human resources auditing

Why Is an HR Audit Important?

MMC’s HR audits are crucial for businesses due to their multifaceted impact on legal compliance, operational efficiency, and strategic alignment. Firstly, these audits serve as a proactive mechanism to ensure legal compliance by systematically reviewing HR policies, procedures, and documentation. This not only helps organizations stay abreast of ever-changing employment laws but also mitigates the risk of legal disputes and penalties, providing a secure operational environment. Secondly, HR audits contribute significantly to enhancing operational efficiency by evaluating and streamlining HR processes, including talent management, employee relations, and compensation structures. The identification and elimination of inefficiencies not only optimize workflow but also enable businesses to allocate resources strategically, fostering resource optimization and resilience.

MMC’s HR audits play a pivotal role in strategic alignment with business objectives. By acting as a diagnostic tool, these audits assess the extent to which HR strategies contribute to broader business goals. The identification of gaps and areas for improvement allows organizations to realign their HR practices, ensuring that the workforce becomes a strategic asset driving innovation and sustained growth. Additionally, HR audits foster a culture of continuous improvement, providing valuable insights into evolving industry trends and enabling businesses to adapt swiftly to changing landscapes. In essence, MMC’s HR audits empower organizations to navigate complexities, reduce risks, and position themselves for sustained success.


It’s time to take an objective look at your business

MMC’s HR Audit takes an in-depth look at your business to identify the health of your HR policies, practices, and procedures. It highlights areas of strengths and weakness within your organization and points towards possible areas of improvement. At MMC we go a step further by outlining actionable steps to offset risk and help take your organization to the next level.  

Legal Compliance and Risk Mitigation

Conducting HR audits ensures that an organization remains legally compliant, proactively addressing potential issues and minimizing the risk of legal disputes and penalties.

Operational Efficiency Optimization

HR audits enable businesses to streamline processes, eliminate inefficiencies, and strategically allocate resources, leading to enhanced operational efficiency and reduced costs.

Strategic Alignment for Business Growth

Through talent management assessments and workforce planning, HR audits align HR practices with broader business goals, fostering innovation and productivity for sustained organizational growth

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human resources auditing

What Specific Areas Do HR Audits Examine?


Every organization, no matter the size, must adhere to compliance regulations; federal, state, or local laws and regulations.

Best Practices

A set of tasks and procedures that are proven to lead to optimal efficiency and results. The most efficient and effective course of action in a particular situation.


Companies use business performance to assess employees and the overall execution of their company. It provides managers, business owners and management teams valuable information on their employees.


The word "competitive" relates to employers using their salary rates to compete with other companies to secure high-quality employees.

Function Specific

Examine an area of your HR processes or policies. You might choose to investigate an area such as payroll management, employee review policies, record-keeping efficiency, etc.

Employee File Audit

A personnel audit is the periodic and systematic review of your personnel files to assess whether the documents in each employee's personnel file are accurate, up to date, and complete.

How Does it Work?

A qualified MMC HR representative will come on site to review all aspects of your current HR practices, policies, and procedures. Our comprehensive approach ensures that a broad range of compliance related topics are covered, and all areas of exposure are addressed. Below is a sample of the topics covered:

Wage & Hour Compliance – Exempt vs. Non-exempt, FLSA Compliant, Overtime Laws
Benefits – Covering FMLA, COBRA, Form 5500s, 401(k) and more
Management – ACA Health Care Reform
Hiring – Employee Handbook, I-9 / Homeland Security compliance, Best practices
Employee Relations – legal disciplinary action, whistle-blower policies, and more
New Employees – onboarding, training, documentation
Safety & Security – Injury and Illness (I2P2 documentation), OSHA ruling, record keeping and recording
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