Impact and significance of HR audits on small businesses

Abstract

This study examines the consequences of inadequate Human Resource (HR) audits in small businesses, particularly in the small grocery retail sector. Resource limitations often prevent small businesses from conducting regular HR audits, leading to reduced organizational performance. The absence of HR audits negatively affects employee satisfaction and retention. Moreover, many small businesses adopt an autocratic human resource management approach, which can further reduce employee loyalty and motivation. This study employs non-probability purposive sampling to select 30 small grocery retail businesses. Semi-structured interviews were conducted with business owners, managers, and employees, and the data were analyzed using thematic analysis. The findings highlight the importance of conducting regular HR audits to improve business operations, enhance employee satisfaction, and support long-term organizational success.