Conduction an HR Audit with the National HR Framework:
A Baseline for Business Success
Ensuring that your human resources (HR) practices align with regulatory standards and strategic goals is essential in a rapidly evolving business environment. Conducting an HR audit using the National HR Framework provides a structured, comprehensive approach supporting compliance, efficiency, and growth for Australian businesses.
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The National HR Framework offers businesses of all sizes a roadmap for managing and optimising their HR functions across key areas, helping ensure that people management practices are both effective and legally compliant. This guide explores why an HR audit matters, introduces the five focus areas of the National HR Framework, and provides actionable steps for conducting an audit that will strengthen your organisation.
Why Conduct an HR Audit with the National HR Framework?
An HR audit is essentially a “health check” of your HR practices and processes. The National HR Framework, developed specifically for Australian businesses, provides a detailed structure for these audits, covering critical areas such as compliance, performance management, and workforce planning.
By auditing against this framework, businesses can:
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Ensure Legal Compliance: Adhere to employment laws, workplace health and safety standards, and Fair Work regulations.
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Enhance Operational Efficiency: Identify and improve gaps in HR processes to support smooth operations and growth.
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Drive Strategic Alignment: Align HR functions with organisational goals, ensuring HR contributes to the company’s vision and success.
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Support Workplace Improvement: Promote a proactive approach to improving work culture, productivity, and employee engagement.
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Takeaway: An HR audit guided by the National HR Framework ensures that your HR practices not only meet Australian regulatory standards but also contribute directly to your business’s growth and stability.
Key Focus Areas of the National HR Framework
The National HR Framework breaks down human resource management into five core focus areas. Addressing each of these areas ensures a comprehensive approach to HR auditing, aligning people management with organisational goals.
01
Organisational Measurement and Planning
Organisational measurement and planning are foundational to understanding and aligning your workforce’s needs with long-term business objectives. This area assesses how well your HR team anticipates workforce demands, manages talent pipelines, and plans for future staffing needs.
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Audit Checklist:
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Do you have a structured workforce plan that aligns with your business’s strategy and growth targets?
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Are there measurable HR goals and key performance indicators (KPIs) linked to organisational objectives?
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Are tools and processes in place to monitor workforce metrics such as turnover, retention, and employee engagement?
Tip: A well-defined measurement and planning strategy allows your business to respond proactively to market changes and ensures you have the right skills and capacity as your business grows.
02
HR Processes and Systems
This area evaluates the core HR processes and systems that manage the employee lifecycle—from recruitment and onboarding to employee development and offboarding. Effective HR processes and systems improve efficiency, enhance the employee experience, and support a consistent approach to people management.
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Audit Checklist:
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Are your recruitment and onboarding processes documented, inclusive, and efficient?
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Is there a clear structure for employee training, development, and performance tracking?
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Do your HR systems facilitate accurate, real-time tracking of employee data, and are they secure and compliant with data privacy regulations?
Tip: Optimised HR systems save time and resources and contribute to a positive employee experience by ensuring consistency and transparency across the employee journey.
03
Governance and Compliance
Ensuring compliance with Australian employment laws, awards, and Fair Work guidelines is essential to mitigate legal risks and maintain organisational integrity. This area focuses on the structures in place to enforce compliance with regulations around employment contracts, workplace safety, and anti-discrimination.
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Audit Checklist:
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Are all employment contracts, policies, and procedures up to date with the latest regulations?
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Do you have a compliance check process for workplace health and safety, anti-discrimination, and leave entitlements?
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Are there protocols for regularly reviewing and updating compliance policies, especially in response to legal changes?
Tip: The National HR Framework helps ensure that governance practices are embedded across the organisation, protecting the business from penalties and reputational damage due to non-compliance​.
04
Performance Management
Effective performance management is essential for cultivating a productive, motivated workforce. This area evaluates whether performance reviews are consistent, fair, and designed to support both employee growth and the organisation’s goals.
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Audit Checklist:
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Are performance management policies clear, transparent, and consistently applied?
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Are managers trained in conducting fair, constructive performance reviews?
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Do you have structured feedback mechanisms that allow employees to provide input on their roles, performance expectations, and career goals?
Tip: The National HR Framework promotes a fair and transparent performance management approach that boosts productivity and helps retain high-performing employees​.
05
Workplace Improvement
Continuous workplace improvement is crucial for building a resilient and adaptable organisation. This area focuses on promoting a positive work culture, enhancing employee engagement, and improving organisational processes to drive productivity and job satisfaction.
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Audit Checklist:
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Do you have mechanisms for collecting and acting on employee feedback about workplace culture, communication, and engagement?
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Are there programs in place that support mental and physical well-being in the workplace?
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Do you regularly evaluate and improve processes to enhance employee experience and efficiency?
Tip: Investing in workplace improvement initiatives builds a more engaged, satisfied workforce, reducing turnover and improving the overall organisational climate​.
How to Conduct an HR Audit using the National HR Framework
Conducting an HR audit with the National HR Framework may seem like a large undertaking, but a structured approach will make the process more manageable and effective.
01
Assess with a STAR Assessment
As part of the STAR Workplace Program, your HR Coach will conduct an audit against the National HR Framework to ensure you have the correct processes in place and they are linked to the business objectives.
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Gain Clarity on your Results
As part of the results process, your HR Coach will provide you with benchmarked data on how your business compares to the best practises outlined by the National HR Framework.
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Develop an Action Plan
Based on your results, create a targeted action plan to address each area. For high-priority areas, set measurable goals and deadlines, ensuring each change aligns with organisational objectives and the National HR Framework standards.
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Implement and Monitor Changes
Roll out the recommended changes and reasses on an annual basis. Schedule regular check-ins to ensure that improvements are sustained and become part of the organisational culture.
Pro Tip: HR audits using the National HR Framework and STAR Workplace help reduce risks while adding value by assessing Strategic Alignment.
Benefits of Using the National HR Framework for Your HR Audit
Using the National HR Framework to guide your HR audit offers several unique benefits, including:
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Enhanced Compliance: Ensures all HR practices are up to date with Australian laws, reducing the risk of costly penalties.
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Streamlined Processes: Provides a structured approach to improving HR efficiency and consistency.
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Better Engagement and Retention: Uncovers areas where the employee experience can be improved, leading to higher engagement and lower turnover.
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Strategic Alignment: Helps align HR practices with broader organisational objectives, driving long-term business success​.
Strengthen Your Organisation with an HR Audit Guided by the National HR Framework
An HR audit with the National HR Framework provides a comprehensive approach to managing compliance, efficiency, and engagement. By following the framework’s structured guidelines, Australian businesses can strengthen their people management practices and position themselves for sustainable success.