Audit-Driven Human Resource Strategies: Redefining Operational Efficiency in Banks

The evolving dynamics of the banking sector, characterized by regulatory compliance, digital transformation, and rising customer expectations, demand innovative human resource (HR) strategies to enhance operational efficiency. This study investigates the impact of audit-driven HR strategies—specifically recruitment audits, training and development audits, performance appraisal audits, and compliance audits—on operational performance in the banking sector. Data were collected from 150 banks through structured questionnaires, with responses analysed using descriptive statistics, correlation, and regression techniques. The findings indicate a strong positive correlation between HR audits and operational efficiency, with compliance audits emerging as the most influential factor in reducing regulatory risks and ensuring adherence to standards. Moreover, HR audits significantly enhance employee productivity, service quality, and cost-effectiveness by aligning HR practices with organizational objectives. The study highlights the strategic role of HR audits as a proactive tool for risk mitigation, workforce optimization, and customer satisfaction. However, the research is limited by its sample size of 150 banks, suggesting the need for further studies with larger datasets and cross-country comparisons. The results offer practical insights for banking institutions to integrate audit-driven HR strategies for sustainable growth and competitive advantage.