The 15-Minute HR Audit Every Small Business Should Do Once a Year

Most small business owners are juggling a million things at once and don’t have time to wade through HR laws, awards, contracts, and compliance rules (that's what we're here for..!)

But once a year, it’s worth doing a quick pulse check on your HR foundations.

Not a full audit or a day-long review.

Just a simple 15-minute check that flags the gaps that are most likely to cause problems later.

This quick mini health check helps you spot risks early, and tidy things up before they have chance to become expensive, and give yourself peace of mind that you’re broadly on track.

Here’s your straightforward 'HR Essentials' checklist...

The 15-Minute HR Audit: Your Annual Checklist

Set a timer for 15 minutes and run through these sections.

If you tick everything, you’re in great shape. If not, that’s exactly what an HR Health Check is designed to help with.

1. Employment Contracts (3 minutes)

Ask yourself:

• Does every employee have a written, signed contract?

• Does it clearly state the correct award, classification, and pay rate?

• Does it match how they actually work (casual vs part-time vs full-time)?

• Are you using current templates - or something from 2018 you found in your files?

• Do you also have contracts for contractors (to avoid sham contracting issues)?

  
  

Why it Matters

Outdated or incorrect contracts are one of the biggest sources of underpayments, disputes, and Fair Work headaches.

2. Pay and Entitlements (3 minutes)

Check:

• Are you paying at or above award minimums?

• Are overtime, penalties, and allowances being applied correctly?

• Do casuals receive their correct casual loading?

• Are salaried staff actually receiving the minimum entitlements their award requires?

  
  

Red flag

Relying on a set-off clause or assuming a high salary covers everything without proper pay reconciliation can leave you exposed.

3. Rosters, Hours, and Breaks (2 minutes)

Look at:

• Are meal breaks, rest breaks, and maximum hours compliant with your industry award?

• Are weekend or public holiday rates being managed correctly?

• Does your record-keeping system show accurate start and finish times?

  
  

Why it matters

Most back-pay cases start with timesheet or break issues. Small businesses are hit hardest because systems aren’t always tight, and the back-pay amounts can soon add up.

4. Policies and Procedures (3 minutes)

Do you have up-to-date, easy-to-understand policies for:

• Bullying, harassment & discrimination

• Leave

• Fitness for work / drugs and alcohol

• Code of conduct

• Disciplinary process

• WHS basics

• Social media and device use if relevant

  
  

Tip

If your staff have never read your policies or you’re not sure where the copies are kept, they’re not protecting you.

5. Performance and Behaviour (2 minutes)

Ask yourself:

• If you have someone underperforming or causing friction right now, are you actively managing it?

• Have you documented conversations or expectations?

• Do you have a simple escalation process if performance doesn’t improve?

  
  

If the answer is no to any of these, you’re carrying risk and stress unnecessarily.

6. Records and Documentation (2 minutes)

You should be able to find these in under 60 seconds:

• Contracts

• Licences or qualifications

• Emergency contacts

• Policies

• Timesheets and rosters

• Leave balances

• Notes from performance discussions

  
  

If your documents are spread across inboxes, desktops, and random folders, it’s time to centralise. Good record-keeping is now a legal requirement, not a nice-to-have.

If you're not sure where to start, our SETUP framework can help you sort all this out and put your HR on autopilot.

What to Do With the Gaps You Find

If you had a few “no” or “not sure” moments, that's fine. Almost every small business has issues somewhere in these areas - usually because HR is one of those tasks that only gets attention when something goes wrong.

The benefit of this quick audit is simple. You now know where the weak spots are and what to fix.

Take the Next Step: Get a Full HR Health Check

If you want to go a bit deeper, our Free HR Health Check is a simple interactive tool that shows you exactly where your HR stands - what you’ve nailed, what you’ve missed, and what to fix next.

✔ Covers hiring, onboarding, contracts, policies, performance, and more

✔ You check a few boxes

✔ It gives you a score + a clear, tailored action plan

And if you want to go even deeper (or you don't have the time and just want it sorted), we can come in and 'lift the hood', see what's potentially leaving you exposed, and fix it.

Final Thoughts

A 15-minute HR audit won’t solve every issue, but it will give you clarity on where your business stands and help you avoid costly surprises later.

And if you've identified gaps, they don't all need to be fixed overnight. Take the most high risk areas and start working on those first and you'll be heading on the right track.

If there's anything you're not sure of, get in touch and we can help you through it.

Small steps, clear structure, less stress. That’s the goal.

Book a free discovery call today, and let’s explore how we can take the HR off your plate, so you can focus on growing your business.

Get in Touch

Need help? Contact us today - sandra@hrconsultingtas.com.au or 0408 408 225  

DISCLAIMER:

The content provided on this website serves as a general information resource on the subjects discussed, and should not be considered tailored to specific individual circumstances or a replacement for legal counsel. While we exert significant effort to ensure the accuracy of our information, HR Consulting TAS cannot ensure that all content on this website is consistently accurate, exhaustive, or current. Recommendations by HR Consulting TAS and any information acquired from this website should not be regarded as legal advice.