HR policies are a must-have for any organization. They can guide employees and leaders aboutwhat’s expected of them, ensure everyone is treated consistently, as well as preventproblems—including legal concerns.
What Is a Human Resources (HR) Policy?
Human resources policies are guidelines for hiring, work processes, compensation, leave,training, promotion, work environments, termination and other important functions. HRpolicies also outline how an organization will treat its people and property. They’redeveloped by HR managers with the help of company management. It’s important toenumeratethe policies before issues arise so you know how to respond.
What Is the Function of HR policies?
What are HR policies? The point of HR policies is to provide a framework for an organizationso leaders can make consistent decisions and ensure people are treated equitably.Implementing effective HR policies can demonstrate that you’re able to meet ethical,diversity and training requirements. HR policies also help your company adhere to corporategovernance and regulation of employees.
What Is the Function of HR policies?
You want your company to run as smoothly and efficiently as possible and stay compliant withHR laws. HR policies add structure and provide consistency in employment and workforcematters.
Examples include:
- Ensuring fair and adequate compensation for all employees.
- Addressing employee grievances and problems and appropriate ways to address them.
- Training employees so their skills meet organizational needs.
- Providing the framework to address personnel issues.
Key Elements for HR Policies
Although the specifics of each organization’s HR policies may differ, they should allbederived from employment best practices and regulations. HR policies should be transparentand universally applied to all employees. Key elements include purpose, procedures, whoneeds to follow the guidelines, as well as any definitions of terms used.
Other important elements include:
- Guidelines for supervisors and managers
- Organizational goals and values
- Systems to regularly review changes that may affect employees
- Context for various programs and benefits, such as professional development andonboarding programs
- Clear steps to implement policies
HR policies are just one component of your overall workforce plan and HR strategy foremployee management. So what are HR strategies and policies? The HR strategy is your overallgoal for how to manage your workforce and help them grow while also boosting companyperformance. And the policy is how to implement that strategy. Your policies should be keptin your employee handbook and stored for easy access for employees, managers and your HRteam. A human resource management system (HRMS) can help not only store the appropriatepolicies and procedures, but also implement some of them. For example, an HRMS can automate time off andscheduling functions.
Advantages of HR Policies
Creating and implementing HR policies can reduce liability. Since they’re meant toensureemployee-related practices are consistent and fair across the organization, well-writtenpolicies will offer leaders guidance based on compliance requirements. For instance, HRpolicies should help managers fairly interpret company guidelines and apply uniformtreatment to all employees, regardless of age, gender, race or sexual orientation. If issuesdo occur, there will be policies in place to address the concerns.
By clearly listing policies, when problems do occur, you’re able to act promptly andsavetime by not repeatedly analyzing ways to solve similar issues. Additionally, you may belegally required to communicate some of this information. And formalizing a policy and thenhelping employees understand where to find things like the leave policy makes navigatingrequests like time off easier for the employer and employee.
Plainly listing policies encourages employee engagement and helps them better understand howto navigate key moments in their career growth, such as onboarding, promotions andoffboarding. Specific policies may vary by industry. But whether you’re working inretail,manufacturing or the restaurant business, employee engagement and retention is vital, and HRpolicies help lay the groundwork for success.
HR Policies & Compliance
HR policies need to be compliant with local, state and federal regulations, especially forcompanies with at least 50 employees. Even if your company has fewer than 50 workers, HRpolicies can help your organization be proactive about shaping company culture and encourageefficiency.
Federal & State Laws Compliance
Your HR department should make sure your company follows federal employment regulations, suchas the Family Medical Leave Act (FMLA),EEO-1 reporting for federal contracts and employer-shared responsibility as it pertains tothe Affordable Care Act (ACA).
City & County Laws Compliance
Organizations also need to maintain compliance with local and state regulations. For example,there may be local minimum wage laws or anti-bias rules you should be aware of when craftingyour HR policies.
Top 20 HR Policies for Employee Handbooks
Along with local, state and federal policies, you also need to address factors that arerelevant to the type and size of your company, as well as how to communicate the guidelinesin a transparent manner. It is also important to have a process to record anemployee’sacknowledgement and understanding of your HR policies. Here are 20 policies to consider foryour employee handbook that follow some of those policies, along with commonly accepted andbest business practices.
1. Recruiting and Hiring Policies
Pre-hire policies include forms like new position requisition forms, referrals and evaluationforms. Formalize the onboarding process, which includes tax forms like the W-4. Considerstandardizing the interviewing, selection and contract or offer letter processes.
2. At-Will Employment
State at the beginning of the employee handbook if employees are at-will, which means eitherthe employee or the employer can end the employment at any time, as long as the reason islawful. Check local and state regulations for at-will employment guidelines.
3. Conduct Policies
The goal of employee conduct policies is to keep the workplace environment safe andcomfortable for all. These include sexual harassment, alcohol and anti-discriminationpolicies.
4. Employment Classification
Common classifications include full time, part time, exempt and non-exempt employees. Theseclassifications help dictate eligibility for employee benefits and overtime pay.
5. Non-Discrimination and Anti-Harassment
Carefully craft your non-discrimination and anti-harassment policies with review of local,state and federal laws, as the regulations may change depending on location. Include theprocesses to follow if issues should arise along with what constitutes harassment anddiscrimination.
6. Safety Policies
Help employees understand safety and emergency procedures. It’s important that anywork-related injury is reported quickly, so share with employees how to report workplaceaccidents. Look for industry-specific safety policies you may need to implement to complywith regulations under the Occupational Safety and Health Act. For example, the use of heavymachinery or hazardous chemicals.
7. Reasonable Accommodation
If employees with disabilities or sincerely held religious beliefs request it, you may belegally required to provide reasonable accommodation. State and federal laws may apply, sobe sure to understand what’s legally required and then document and communicate thepolicieson how employees can submit requests and what accommodation will be made. Even if employeesdon’t submit the request in writing, be sure to document each request and any actiontaken.
8. DisciplinaryTermination Policies
These can span different types of policies, such as rules for attendance and anti-harassment,and need to cover reasons for disciplinary action that may result in termination. Thesepolicies should also include how disciplinary actions will escalate, such as going fromverbal to written warnings.
9. Compensation Policies
Compensation policies should cover employee benefits and payroll frequency. It should alsoinclude how employees are paid (i.e., direct deposit) and any secondary benefits, such aseducation reimbursem*nts.
10. Workplace Attire Policies
Appropriate workplace attire should be described in detail. Instead of using generic languagelike “professional attire,” be specific. And include information about differentenvironments in your workplace. For instance, if you have a lab, include what type of safetygoggles need to be worn for compliance reasons, or what attire teachers can wear on sportsday.
11. Attendance Policies
Clearly outline for employees when they are expected to be at work and what to do if theyhave an unscheduled or scheduled absence or are late for work. Don’t forget to includehowto record time worked and break policies.
12. Referral Program Policies
If you have a referral policy, include it in your employee handbook. List how any referralrewards are provided and any stipulations, like if the new hire has to stay employed for aspecific time frame before the reward is given.
13. Expense Policies
If you reimburse for expenses, outline what isreimbursable, the maximum amount and the procedures to request reimbursem*nt.
14. Leave Policies
Share with employees how to request time off. And list policies for sick leave, vacationtime, maternity and paternity leave, and any company-recognized holidays.
15. Sexual Harassment
Sexual harassment needs to be taken seriously. Keep your policies up to date and clearlycommunicate zero-tolerance guidelines as it relates to any inappropriate or unwelcome sexualactions or comments.
16. Bereavement Policies
Bereavement policies can be included in your general leave policy section or as a separateentry for compassionate leave. Detail the time off provided and how to make a request,including what to do if employees need to take a longer leave of absence.
17. Local and State Laws
Employment law will vary by location. Understand what your local and state laws require andinclude any variation in your employee handbook. For example, there may be differing wageand overtime laws, leave requirements or record keeping regulations.
18. Meals and Break Periods
Be clear about any meal and break period rules, including how long they can last and how manybreaks employees can take. Some breaks may be required, but even if it’s not a legalrequirement, listing your break policy is a best practice.
19. Using Company Property
Include documentation and procedures for the process of using company property such asequipment or tools. Incorporate things like the condition equipment should be in whenreturned, as well consequences if items are either damaged or not returned.
20. Resignation or Exit Policies
Make clear how employees should leave the company when they are ready to exit. Includeinformation on how to hand in their resignation, the desired notice time and exit interviewpolicies. Also, list reasons for involuntary termination.
Trending HR Policies
Current events and changes in the business landscape mean HR policies are not static.Addressing workplace trends can help you stay on top of best practices and protect yourorganization in a dynamic environment. Policies will change as your business develops, andthey should support your overall human capital management efforts tohelp your employees grow in their careers while keeping your business nimble and adaptive.
What are the most important HR policies? Well, that will change based on your company, thelocation, the industry, the size and what most helps your employees. There are many that arelegally mandated, and some policies are simply common and standard to include. Regardless,it’s important to adjust as business situations alter.
Consider including these six trending HR policies in your employee handbook:
- Social media policy: Creating and enforcing social media policies canprotect the reputation of your company. You may need policies for company accounts, aswell as policies for your employees’ personal social media profiles. Include whatdisciplinary measures will be taken for policy violations.
- Remote work policy: As workforces become increasingly mobile, help youremployees understand what you expect of them. Include which employees are eligible forremote work, what limitations there are and how you’ll be monitoring their work.
- Weapons in the workplace policy (or zero tolerance for workplaceviolence): Organizations should address additional violence policies, suchas weapons, what items are considered weapons and behavior that's prohibited, and anydisciplinary measures that will be taken for policy violations.
- Updated confidentiality policy: Be specific about which work-relateditems are confidential. Don’t include items such as compensation and workingconditionsbecause those aren’t considered private.
- Drug and alcohol policy: Expanding laws regarding the legalization ofmarijuana in some areas means organizations need to address how usage is addressed inthe workplace. Keep in mind all local, state and federal laws regarding substance usewhen drafting the policy.
- Bring your own device (BYOD) policy: If employees use personal devicesfor work reasons, draft policies for privacy and security measures, as well as anymonitoring that needs to occur.
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Supporting HR Policies With HR Software
Using HR software is an efficient and convenient way to keep the records you need to draft,implement and monitor HR policies. For instance, onboarding new employees or reimbursingemployees may require workers to submit forms. HR software can make it moreefficient by digitizing those forms and housing all documentation and records in one place.This data can then be used to track, assess and analyze whether policies are adhered to anddecide what changes need to be made.
Organizations need effective and clear HR policies to establish order and to create apositive work environment. HR issues will come up and require leaders to address them, sohaving policies in place will alleviate the burden of having to assess how to address thesame types of issues over and over again. Clearly communicating policies benefits both theemployer and the employee.
