Your First HR Audit: A Checklist for Small Businesses

You don’t need a full-time HR manager to run a smart, simple HR audit.

Whether you have 2 employees or 20, a quick audit can help you:

• Stay compliant

• Protect your business

• Spot risks early

• Build a better workplace

Here’s a step-by-step checklist to run your first HR audit — without the jargon or the overwhelm.

Step 1: Check Your Employment Contracts

Ask:

• Do all employees have signed contracts?

• Are the contracts clear, fair, and compliant with labour laws?

• Do they cover notice periods, working hours, leave, and misconduct?

✅ If your contracts are vague or outdated, fix this first. It’s your foundation.

Step 2: Review Your Policies (Even If They’re Just One-Pagers)

At a minimum, you should have:

• Leave policy

• Disciplinary process

• Grievance/complaints procedure

• Health & safety policy (even basic)

These don’t have to be fancy — just clear, written down, and accessible.

Bonus: Have an onboarding pack or employee welcome letter? That’s a win.

Step 3: Map Out Your HR Records

You should know where to find:

• Staff contact info and emergency details

• ID copies, contracts, and job descriptions

• Leave records

• Disciplinary or performance notes

• Training records (even informal ones)

Store securely — and digitally if possible.

🔐 Data privacy matters. Lock your cabinets or encrypt your files.

Step 4: Evaluate Job Clarity and Role Fit

Ask:

• Does each person know what their role includes?

• Do you have updated job descriptions?

• Are performance expectations clear?

Confused staff = inconsistent results = constant stress for you.

Step 5: Check Leave Balances and Pay Slips

You don’t want a backlog of unused leave or missing pay documentation.

Do this:

• Run a leave balance report

• Check if people are actually taking leave

• Make sure you’re issuing payslips and keeping records

This is one of the first places the CCMA will check if there’s ever a dispute.

Step 6: Spot Early Warning Signs

Look out for:

• Constant team friction

• Frequent sick leave

• Complaints that aren’t formally logged

• High turnover in one role

These are signals your HR practices need tightening — or that leadership gaps exist.

Step 7: Create an HR Action Plan

Don’t try to fix everything overnight. Use your audit to create a basic plan:

• What’s urgent? (e.g. missing contracts)

• What’s medium-term? (e.g. updated job descriptions)

• What’s ongoing? (e.g. monthly check-ins)

A 1-page plan is better than a 20-page policy you never use.

Bonus: Free HR Audit Starter Template

Want to tick off this audit as you go?

📥 Download your HR Audit Checklist for Small Businesses PDF – editable, printable, and totally practical. 

Final Thought:

You don’t need to be perfect — you need to be prepared.
A basic HR audit gives you control, peace of mind, and a stronger foundation to grow from.

Small business HR isn’t about red tape.
It’s about protecting what you’re building — and the people helping you build it.