10 Essential HR Policies and Procedures

Writing up HR policies and procedures may be a task that you would want to put off, especially if you are managing a startup or a business that requires a lot of your time, attention, and effort. You would have a ton of other things that would require your presence.

But remember, not having clear-cut guidelines and policies in place can lead to misunderstandings eventually. Setting out clear rules for your employees will ensure a healthy relationship between the employer and employees, as there is no room for mishaps, and everyone is on the same page.

What is HR Policy?

Human resource policies are a set of rules and guidelines businesses have to manage employees efficiently. Defining HR policies is a core function of the human resource management system.

To give you an idea of an HR policy, look at the screenshot below of some of Alp’s defined HR policies updated on our e-manage employee portal.

What are the HR Policies of a Company?

Companies ‘ HR policies differ from one company to another. They cover a variety of aspects of human resource management like:

• Recruitment
• Dress code
• Overtime compensation
• Vacation
• Sick days and personal leave
• Performance evaluation
• Termination

With the constant evolution and modernization of the workplace, it is important to establish a set of mandatory HR policies and practices in companies. The list of policies you include in your handbook depends on factors like the size, location, industry, and varied needs of your organization.

What are the Types of HR Policies?

However, regardless of the factors there are 10 types of HR policies that every company must consider establishing in their organization. They are-

1. Code of Conduct

This comprises the rules or expectations of its employees in terms of behavior, as to what is acceptable or not. It addresses issues like-

• Dress code
• Punctuality
• Alcohol, and drug use
• Harassment and bullying

2. Policy of Recruitment

This policy sets out criteria for candidate selection and the onboarding process of the candidate. Some companies engage in an employee referral program, which can also be included as part of the policy.

3. Termination Policy

The termination policy defines the procedure to be followed by the exiting employee, as to how they can submit their resignation and the notice period required. Some companies also list actions of employees that can lead to their termination. 

4. Hours worked or overtime policy

It states how flexible the work hours are by defining the number of breaks that could be taken, the duration of breaks, log-in and log-out mandates, etc. It also clearly defines how overtime is calculated and compensated.

5. Attendance and remote work policy

Remote work is the recent ongoing trend. The company’s policy will define when employees are allowed to work from home or need to work from the office. If allowed to work remotely, relevant procedures such as requests for home office allowance, etc will be defined in the policy.

6. Promotion policy

Promotions are given to employees based on their performance. Performance evaluation policies transparently communicate how employees’ jobs are graded and on what basis will they be running for a promotion.

7. Health and safety policy

Workplace injuries occur more often than you think. Having health and safety policies in place will ensure that employees follow certain rules to make the workplace environment safe for themselves and their co-workers.

8. Expenses policy

The expense policy explains the reimbursements that employees can avail in case they are expected to spend from their pocket when they go on business trips or events.

9. Benefits and Compensation Policy

You need to communicate clearly to your employees as to when they will be paid, mode of payment, benefits they will receive, and other additional benefits that you will be offering like medical benefits, insurance, etc.

10. Leave policy

Allowing time off work is extremely important for every employee as it gives them time to unwind, refresh, and get back with a positive fresh mind, happy healthy, and productive. In your leave policy, you need to specify the type of leaves like sick leaves, privilege leaves, public holidays, etc.

What is the Importance of HR Policies?

An HR policy acts as a playbook for the HR team and the entire organization. HR policies for employees provide a framework to understand the advantages employees get from the consistency of these processes.

These HR policies and strategies help organizations meet their needs for diversity, ethics, and training, along with commitment regarding corporate governance and rules.

Some of the aspects of HR policies and procedures help organizations are-

• Offers clear communication between the employer and employees about the employment terms and conditions.
• A well-controlled team working towards delivering better results for customers thereby creating enhanced customer service.
• Formation of a base that facilitates treating employees equally and impartially.
• Setting clear rules and guidelines for managers and supervisors
• Creation of a base to develop a workforce handbook.
• Establishment of a base that can review changes.
• Forming a context for companies’ training programs and employee recruitment programs.
• HR policies and procedures lead to improved safety in the workplace.

What are the Objectives of HR Policies?

An HR policy sets behavioral standards and obligations and documents the disciplinary process to meet the responsibilities. HR policies and procedures offer a structure to make consistent decisions.

The main objectives of having the right HR policies and practices in place are-

• Help organizations maintain and trend personnel at all levels of the organization.
• Help subordinates in quick decision-making.
• Provide opportunities for the promotion of workers.
• Provide employees with job security.
• Help employees develop a sense of trust and cooperation.
• Create an employee-favorable work environment.
• Enable organizations to use resources efficiently.

How to make HR Policy from Scratch?

We have established how the right employee HR policies and procedures can help with the organization’s smooth and effective functioning. But how do you draft an HR policy? What are the things to consider and focus on while drafting one?

Here is a step-by-step procedure for the formulation of HR policies for your organization-

1. Choosing a suitable title for policy

Make sure you choose a title that is relevant to the nature of your organization and one that can describe the basic content of your policy.

2. Understand why you are writing the policy

Make sure that you outline the company’s motive and HR need in the policy so that the employee would not hesitate to look for the same.

3. Use simple words

Do not use complex words or sentences. Make sure that the policy is written in clear, understandable words. Make it user-friendly.

4. Make sure that the HR policies and procedures reflect the company’s image

Mention the rules and regulations that will be taken against employees should disobey the HR policies. The policies must be precise.

5. Clearly outline the HR policies

A clear demonstration of the HR policies must be outlined in the guidelines. It must be able to serve as a guide for those reading it.

6. Finalize your policy

Make sure you read and re-read it before you decide on finalizing it. Also check with your seniors to get an unbiased, third opinion on the same to make sure there are no flaws.

7. Keep it flexible

HR policies and procedures are bound to change over time, which is why you need to keep it flexible and make sure it can adapt to changes. Make sure that you include the latest updates in hr policies in India as and communicate it in the best way possible to your employees.

Conclusion

Policies and procedures associated with human resources are the most important aspect of any corporation. Human resources policies and procedures are commitments that an organization makes as to how employers deal with employees.

As a third-party HR Consultant, Alp Consulting can help organizations prepare and update their HR policies and procedures in the manual and employee handbook, facilitating a working environment that is equitable, balanced, and free from conflicts. If you are looking to create a handbook that reflects your company’s image with the right HR policies and strategies, then contact us today.

Frequently Asked Questions

1. What does HR policy include?

An HR policy includes everything from how an organization recruits employees to ensuring employees are clear about the HR regulations and policies, expectations, and rules, are how employers can help resolve issues if any.

2. What are the examples of HR policies and practices?

Some of the examples of HR policies and practices are-

• Employee punctuality and attendance policy
• Health and safety policy.
• Break policy
• Leave and time off work policy.
• Non-discrimination and anti-harassment policy.

3. What is the difference between HR policy and employee handbook?

The employee handbook outlines policies and expectations and sets the tone for your organization The HR manual defines the procedures to ensure that the policies and expectations are handled consistently and maintain 100% compliance with employment laws.

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