HR Due Dilligence - What is it?
An HR Due Diligence is a systematic review of an organization’s HR processes, personnel structure, and work environment. The aim is to identify risks, opportunities, and areas for improvement that may impact the company’s profitability, productivity, and long-term success.
It is often conducted in preparation for an acquisition, merger, or major investment in a business and aims to provide the best possible decision-making foundation.
A comprehensive HR Due Diligence typically includes:
- Organization & Leadership – Structures, roles, management competence, and culture.
- Personnel Structure & Talent Management – Recruitment, retention, skills needs, and succession planning.
- Compensation & Benefits – Salaries, bonus programs, pensions, and incentive structures.
- Work Environment & Culture – Engagement, values, diversity, and inclusion initiatives.
- HR Processes & Systems – Efficiency, digitalization, use of AI, and compliance.
- Legal & Compliance – Employment contracts, labor law risks, GDPR, and pay transparency.
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