Conducting an HR audit early in the new year is essential to allow you to plan and prepare effectively for the year ahead.
Take the time to review, update, and refine your HR practices. Doing so can set the foundation for a well-organized, fair, up to date, structured business, which will strengthen morale and reinforce a positive company culture.
When employees see a commitment to business planning which takes their personnel needs, growth, and wellbeing into account, it fosters trust, engagement, and a sense of belonging—all critical elements for a thriving organization.
You can use this streamlined 10-point checklist to guide your start of year HR audit and set your business up for success in 2025. Remember, this is a shortened version of a Start-of-the-Year HR Audit. If you need help to dig deeper, reach out to us.
1. Employee Records and Data
• Update employee personal and job-related information.
• Ensure job descriptions and organizational charts are current.
Keeping employee records and job-related documents updated demonstrates respect for employees and ensures they feel recognized and valued in their roles.
2. Workforce Planning
• Review turnover rates and upcoming retirements to plan staffing needs.
• Analyze where and why turnover is happening the most and draft plans to address this.
• Audit employees on leave and plan for returns.
Proactive planning minimizes disruption, reduces stress, and shows employees their needs and career trajectories are a priority.
3. Culture and Engagement
• Conduct employee satisfaction surveys and use the results to plan for greater workplace health and employee satisfaction.
• Plan employee engagement activities for the year.
A focus on culture fosters trust, improves morale, and creates a stronger sense of community within the workplace.
4. Recruitment and Succession Planning
• Update job descriptions, interview questions, and onboarding processes.
• Review and refine succession plans.
Effective recruitment and clear succession planning instill confidence in employees about growth opportunities, improving engagement and loyalty.
5. Compensation and Benefits
• Review compensation rates, pay equity requirements, benefits programs, and unused vacation entitlements.
• Adjust wages or bonuses based on market trends and performance, and budget accordingly.
• Plan your employee appraisals/performance review process.
Competitive and fair compensation reassures employees of their value, leading to greater satisfaction and retention.
6. Training and Development
• Audit training records and plan mandatory sessions.
• Facilitate recertification for expired employee certifications.
Investing in training signals a commitment to employee growth, boosting motivation and job satisfaction.
7. Health and Safety Compliance
• Inspect safety equipment and first aid kits.
• Update and post the company’s health and safety policy.
• Plan for required H&S training and risk assessments.
A safe workplace reflects an organization’s care for its employees, directly enhancing morale and trust.
8. Policy and Document Updates
• Review and update the employee handbook and policies for compliance.
• Dispose of outdated personnel files and documents securely, as per record management standards.
Transparent and up-to-date policies create clarity, reducing workplace conflict and fostering a positive environment.
9. Legal and Legislative Compliance
• Check policies and processes for compliance with employment standards and accessibility legislation.
• Update postings of required labor laws and certifications.
Adherence to legal requirements safeguards employees’ rights, reinforcing a culture of fairness and equity.
10. HR Goals and Reporting
• Assess the past year’s HR achievements and gaps using HR data.
• Define clear HR goals for the upcoming year.
Setting and reviewing HR goals aligns organizational business priorities with employee needs, driving engagement and a shared sense of purpose.
The Big Picture
By performing a Start-of-the-Year HR audit, you don’t just ensure compliance, structure, and organization —you actively contribute to a workplace that feels fair, organized, and cohesive.
Whether you’re preparing for growth or refining existing processes, this checklist provides a solid foundation for fostering a thriving and resilient workplace.
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