Roadmap for HR Audit in Pakistani Banks: A Grounded Theory

The strategic significance of Human Resource (HR) audits has not been investigated in the Pakistani banking industry. The auditing is still perceived by many banks as a compliance activity instead of a method of planning long-term employee workforce, worker engagement, ethical governance, and digital progress. This research paper attempts to address that gap by creating a framework which is responsive to the dynamics of an emerging market. Qualitative data were collected via the 15 external auditors who have experience working in the banking sector under the constructivist grounded theory. Interpretation of interview transcripts. Open, axial and selective coding were conducted using NVivo software. The analysis has shown that there were common issues such as poor recordkeeping systems, a lack of digital infrastructure, insufficient management support, and resistance to change by employees. In reply, the study shows a five-stage HR audit roadmap: Initial Engagement, Comprehensive Audit Planning, Data Handling, Reporting and Feedback, Insightful Analysis and Continuous Improvement. The proposed model contributes to the literature of HRM through contextualizing the HR audit practices to growing economies and facilitating modernization, data-driven processes, and strategic alignment of the HR functions and organizational goals.