What are HR policies and procedures?
HR policies are statements or rules written by the human resources department that determine and guide the people who work at your company towards achieving a specific outcome. Human resources procedures, on the other hand, are the methods and actions that are used to comply with HR policies.
What is a policy and procedure manual, and why do you need one?
The policy and procedure manual states the rules regarding the privileges given to the employees within an organization and helps employees gain a better understanding of the company culture. It lays out the steps needed to fulfil the organization’s rules and the consequences if they’re not followed. Having all the policies and procedures in writing gives HR a way to make consistent decisions that are strategically related to company goals. This manual lets employees know what their employer expects from them and what employees can expect in return.
Why is it important to have clear HR Policies in place?
Managing a successful company is easier when everyone follows the same set of guidelines. There is no favouritism or biases when there are human resources procedures and policies to refer to. The manual can be used as an orientation piece for new employees so they can get familiar with their new employer, or as a reference tool when needed. Having policies and procedures in place also offers protection to you as an employer. This is especially beneficial against discrimination or wrongful termination accusations if you fire an employee for not complying with company policy.
Signing off on policies and procedures
Having your employees and management sign off on reading and understanding the HR policies and procedures is a legal and necessary step. It is advisable to keep a copy of each employee’s acknowledgement in their respective personnel files so that they can be cross-referenced easily if the need arises. Whenever a policy is amended or you introduce a new policy, the same practice should apply—review the policies and procedures, have them signed off, and file them.
How do HR policies affect employee attitudes?
Since the purpose of HR policies is to guide and protect the most important resource a company has—its workforce, they have a significant effect on employee attitude. Employees are likely to be more motivated when they feel protected and taken care of, so it works in the company’s favour to have thoughtful human resources policies in place. That said, some HR policies affect employee motivation and influence performance more than others. Here are some of the most common HR policies you might want to consider including in your company’s HR manual:
- Dress code
- Work hours
- Overtime
- Holidays
- Vacation
- Vacation pay
- Payroll dates
- Employee benefits
- Lunch/Breaks
- Tardiness
- Sick days
- Parking
- Substance abuse
- Internet/Email use
- Personal phone
- Discipline
- Termination
- Training
- Performance appraisal
- Career development
- Communication
- Harassment
- Workplace disputes
- Workplace health and safety—depending on the industry, this could be a document all on its own
When company morale seems low
Without the right motivation, employees come to work and get through their week just for a paycheck. You can tell this is happening when you see:
- increased absences
- tardiness
- high employee turnover
- low productivity
- poor performance
However, you can correct this by creating your policies and procedures with the entire organization in mind. By doing so, you will see the HR policies’ effect and an overall rise in company morale, with positive outcomes, such as:
- increased engagement
- job satisfaction
- team collaboration
- high morale
- accountability
- increased productivity
- creativity
- innovation
- respect
- loyalty
- dedication
So, if you notice your employee morale is low, it might be the right time to assess whether you need to revise some of your policies and ensure they’re clear for the benefit of both the company and its employees. Some HR policies that are known to boost employee motivation include:
- performance appraisals
- career development
- training
- anti-bullying and harassment
- workplace health and safety
Now, let’s take a look at each of these HR policies in detail:
Performance appraisals
A performance appraisal is used to evaluate and document an employee’s job performance. Although it doesn’t sound very motivating, when executed properly, it can become a career development tool. The opposite is true if the performance appraisal is done annually with no constructive feedback throughout the year, or if it’s based purely on production targets. In such cases, the manager usually calls the employee in for an annual review once and suggests how they can do better, but that’s where it ends. When there is no regular communication between the manager and employees unless the manager sees an opportunity to point out something negative, expect decreased morale. Moreover, when there isn’t any coaching or feedback, it’s clear that the manager doesn’t know what their employees need to boost their productivity. To resolve this issue, here are 5 good motivating factors you could consider when looking to deploy the right performance appraisal system:
- Regular communication: Your manager needs to have frequent communication with your employees so they can get regular feedback on what they need to do to improve productivity. When the manager pays attention, it shows that they care. This is a great way to improve behaviours and attitudes, which directly affect productivity.
- Advancement: A good manager continually motivates employees and will be proud to see their employees grow and develop. In turn, motivated employees will have clear goals and want to grow their careers. However, this can only happen with regular feedback on their job performance and overall attitude toward their work. Your employees can then take this constructive criticism and act on it to improve where needed.
- Encouragement: One of the best features of a good appraisal system is the ability to correct any negative issues that arise in “real time.” When something is being done incorrectly, that mistake will persist until it’s addressed. Continuous interaction works both ways, so the manager should check in with employees from time to time to correct certain behaviours and to allow for frequent recognition and encouragement. In fact, recognition is such a great motivator that it’s considered the emotional equivalent of a financial bonus.
- Incentives: Performance appraisals that include incentives are also definite motivators. When you tie in bonuses, raises, commissions, and promotions, you can expect more effort and productivity from your employees. However, a good strategy is to use incentive policies at different times throughout the year instead of only at appraisal time. This will get you higher involvement and stronger dedication all year round.
- Success stories: Successful organizations are those that take pride in nurturing their employees along their career paths while seeing their full potential is realized. Not only does recognizing employees’ accomplishments help motivate them, but it also makes great stories for motivating and directing new employees. When you have someone on your team who has worked from the bottom up, you can use their story to influence others to do the same.
Read more: How to Conduct an Employee Evaluation
Career development
Give your employees a clear path to follow with your expectations for their career development and advancement. Having attainable goals will motivate your employees to follow rules and perform at their best. Organizations that have HR policies on career development have higher retention rates and an even better reputation.
Training
Training policies show employees that you value their success and advancement. These policies can help strengthen your employees’ skills and encourage them to learn new ones that can help with moving up in the company. Accordingly, your policy and procedure manual should outline the qualifications needed for (and that will be taught in) the training. Related: 5 Steps to Creating an Effective Training and Development Program
Anti-bullying and harassment
There’s zero tolerance for harassment in today’s society. In fact, it’s against the law. There’s a long list of circumstances in which discrimination is prohibited, such as cases related to:
- age
- race/colour
- politics
- gender identity
- sexual orientation
- religious beliefs
- ethnicity
- mental/physical disabilities
- marital/family status
Having a harassment policy in place can help you circumvent any tension or stress an employee may feel regarding these issues. Not only it will help all your employees feel welcome and equal, they’ll be happier, more satisfied, and motivated to be good employees.
Workplace health and safety
Having a workplace health and safety policy helps ensure that everyone gets home safe. By enforcing this policy, you could limit the potential for accidents or near misses caused by certain actions, behaviours, or equipment. Some common workplace health and safety policies and procedures include:
- how to prevent trips/slips/falls
- proper lifting
- air quality
- electrical hazards
- fire (plan and prevention)
- ergonomics
For industries that use large tools and equipment, or that involve outdoor work or work in uncontrolled areas, many more policies could apply. As an employer, it’s vital to make health and safety policies a priority at all times—companies that care about personal safety are excellent motivators.
HR policies effect
Taking everything into account, human resources policies help create a safe and unbiased place to work. These policies are integral for employees to have a sense of structure and guidance and can clearly state a company’s code of conduct, local regulation compliances, and organizational operations. Big or small, every organization needs HR policies and procedures. Strategically speaking, if your company adopts employee-centric policies, you are also more likely to gain higher performance rankings from your employees, especially when paired with up-to-date systems and well-trained management who can encourage and motivate the lifeblood of your company—your employees.