Gray Hair Consultants 
HR audit

HR Audit is used to support strategic planning and human capital development. Its purpose is to identify critical areas in the functioning of the HR department in accordance with the company's business model, prioritise individual HR areas and subsequently implement new and optimise existing processes. HR Audits are most often conducted when a company is undergoing rapid growth, transformation or a change of major owner or shareholder. Our HR audit expertise covers the following areas:   

  • Mapping the current state of HR in the organisation.

  • Prioritising the implementation of individual HR processes, define the "value chain".

  • Establishing clear competencies and expectations for the position of HR Director vs. management (HR strategy).

  • Defining the Communication Strategy for future HR processes and changes.

  • Effective allocation of HR costs in terms of their justification and long-term sustainability.  

An example of HR Audit experience 

For a service organization with a multi-million euro turnover, we had to address issues related to high personnel costs and overall low organizational efficiency.

We were able to identify low utilization of the work pool by field employees due to poor planning and communication of performance between supervisor and employees. Performance was not planned, performance reports were lacking, staff were not managed systematically and in particular the approval process did not have a clearly defined matrix of responsibilities and procedures. We found similar problems with performance approval for administrative staff.

The HR Audit resulted in an increase in the number of field performances in the same amount of time, an improvement of interrelationships in the team, and savings in the number of administrative staff. By introducing the use of an approval matrix we helped to reduce the time required for decision making and bringing these decisions to life in the shortest possible time.