The Policy Puzzle: How to create and maintain lasting and relevant HR policies

HR policies exist so organisations can manage the way they employ people. Sometimes these policies will ensure the company complies to legal requirements – how people should be employed, paid and so on. However, they also go beyond legal requirements to stipulate specific ways of working within the business – from processes to company culture. HR policies can govern procedures such as recruitment and selection, pay and reward but they cannot replace or over-ride employment law. They are at once a way of ensuring staff know what is expected of them and a way of protecting the organisation against litigation: if something goes wrong the first question to ask is what the policy is and has it been followed correctly.

HR policies go further

Policies are about more than compliance. Certainly they govern how employees should be treated, managed and so on, but through this they affect every employee’s experience of working for the organisation. To this end a policy is the expression of company culture in action: this is how we recognise staff, this is the behaviour we expect, this is the reward we give, this is what happens when things go wrong. Exactly how the business reacts to any given situation will form a big part of the employee experience and therefore contribute to that organisation’s culture.

What your HR policies should do

HR – and wider management – cannot be on hand to micro-manage everything and everyone. Whether it’s how an employee does their job, how they interact with each or how they work together, there needs to be autonomy so that work can be done efficiently and effectively. HR policies provide a set of rules by which that workplace can operate.

Policies will help managers understand what is expected of them, and what is expected of the people they are responsible for. They will help  them organise and work with their people in a safe and effective way. Everyone needs to understand what is and isn’t acceptable and these policies mean people can be managed consistently, fairly and legally.

When do I need a policy?

HR policies should cover the entire life-cycle of the employee in the workplace.

Application

When an organisation seeks to attract new talent there needs to be a clear way in which this is done. Policies can govern where talent is sourced from and how they are attracted. It can affect the language, look and the feel of a job advert, ensuring diverse and appropriate candidates are attracted to the organisation.

Policies can determine how long the application process takes and what information/evidence the organisation needs in order to accept an application and process it. From a legal perspective there may be certain documents which must be presented and certain background checks under-taken before an individual is moved along the recruitment process.

Onboarding

Before an individual actually starts in their job there may be necessary processes to undergo and information they need to receive. This may be required so they understand their role and department in the organisation. There could also be legal requirements – health and safety information for example – without which the employee could find themselves at risk. This could cover the mental health side of the workplace ie. a policy which demands respect and fairness between employees – as well as covering physical aspects of the workplace.

HR policies can govern induction programmes, outlining where and when such induction will happen, who is qualified to run these sessions and how much training/information individuals need before an employee starts work for the company. Again, this policy may be important from a legal perspective, but it will equally be about ensuring the individual understands and accepts their employer’s processes, the way things are done, and their culture – expected behaviours in the workplace and the values upheld through the work done.

Ongoing employment

The HR World’s Knowledge Hub gives a clear indication of the diverse areas of working life that HR needs to consider and cover in order to create and maintain an effective workforce. Again, these areas combine legal issues, cultural aspects of life and best practice that can enhance the performance and productivity or a workforce and therefore the wider company.

In each area good HR policies will give employees a clear idea of what is expected of them and what to expect from the organisation. The HR policy will govern reward and recognition, behaviour at work, disciplinary matters when things go wrong and so on. They can also govern aspects of work such as expected career trajectory and the kind of resources that can be expected for training and development purposes.

Company culture will also be affected through policies around diversity, grievance policies, parental and caring duties, flexible/hybrid work and the inclusion of the employee voice.

Some HR policies will cover specific areas of the business – there may be policies covering particular job roles or occurrences in the company calendar. Policies may cover how assessments are made of employee performance or they may govern the standard to which a particular job must be done. They may also affect how a job is done, thereby upholding the company culture or reputation expected from the business by its customers.

Legislation and compliance

The government are currently introducing a new Employment Rights Bill which will see a wide ranging raft of changes and new initiatives brought to apply to employing people. For HR this will mean adapting and creating policies to reflect these changes.

To do this the current policies covering the areas of employment practice affected should be carefully reviewed and studied to understand what the business already covers.

Areas specifically affected by the Bill include:

• Bereavement, paternity and unpaid parental leave
• ‘Fire and rehire’ practices
• Statutory sick pay
• Unfair dismissal
• Zero hours contracts

Top Tips for Creating HR Policies

1: Be clear why the policy exists

There is no point in making your life complicated, nor for confusing your management team or annoying employees – the ones who have to uphold the policies and follow them. Policies need to be grounded, realistic and understandable. If the law says something needs to happen there is generally a clear reason for this. The health and safety – mental safety as well as physical safety – of employees must be prioritised within the workplace, for example. There may be policies which are particular to your industry, or company. There may even be policies to govern the work of particular groups of employees. In each case the reason for the policy must be clear and make sense.

2: Make it straight-forward and practical

Policies have to be realistic and they have to be actionable. If managers and employees do not understand them or understand why they exist then there’s a good chance they will be ignored or transgressed unknowingly. Employees will also feel limited and ‘over-managed’ if policies go too far or go into too much detail as to how something must be done. While ensuring activities in the organisation are acceptable and positive for the business there must also be the recognition that all employees need a sense of autonomy, to bring themselves to the workplace, otherwise they will not feel valued.

3: Be sure your policy is targeted

There is no point in applying policies across sections of the workforce where it does not apply. Not everyone needs the same level of health and safety training. Not everyone will be in a management position or need to know the right way to deal with others. Similarly, policies should not overstep their influence. They need to cover the requirements and no more than that. Policies which overstep the mark in whatever direction create a headache for those who are charge with following them – they begin to appear unnecessary and if so, employees are less likely to to take any of the policy seriously. Policy reach should be kept to an appropriate level, not too much but also ensuring that the important aspects are covered correctly.

4: Get legal advice

As a seasoned HR professional you will no doubt be confident in creating policies to cover aspects of your organisation. Similarly there may be policies within your business that are not based on legislation and do not have a legal implication: they are simply the actions and behaviours required by the business, identified as necessary for the smooth running of the business and the good of the workforce.

However, the policies which do have legal implications should have the backing of a legal professional to ensure they are fit for purpose. If a problem arises the company’s policy could be found to be lacking and therefore leave the business exposed to legal action. If a policy doesn’t go far enough to protect employees from physical harm or discrimination, for example, then the company may be at fault rather than an employee not following the policy.

Policy areas can include:

• Health, safety and well-being
• How to use equipment, site safety, lifting activities etc. Well-being may include areas such as how to communicate, how to raise a disciplinary matter and avoiding negative management behaviours.

Employee relations and general HR issues:

• Disciplinary and grievance policies, reward policies including: annual leave, volunteering, parenting, caring responsibilities
• Diversity & Inclusion policies, governing recruitment processes, shortlists as well as how people are treated within the business eg. Promotion, representation etc.

Learning and development

How, when and what employees are entitled to in order to further their skills and career. This could cover how much time employees can spend in L&D activities, financial arrangements – especially if employee are entitled to courses and material provided by external sources. This may also cover the experience require by employees to access learning resources or to quality for promotion etc.

Dealing with customers/members of the public

If your business is public facing you should have a code of conduct covering these interactions. This could include use of language, protocols for handling enquiries, how to deal with customer complaints and so on.

Other policies that organisations may want to consider include diverse areas related to the wider business needs (for example corporate responsibility or anti-bribery measures) or those associated with technology and new ways of working (the use of social networking sites, for instance).

Ending employment

When someone leaves the organisation you may needs policies in place to protect your unique products or processes. You may require employees to go through an exit interview to gather information about their experience with you. In some circumstances for senior roles you may need to offer ‘garden leave’ whereby your employee cannot immediately take a job with a competitor.

Why would you change a policy?

Changes in legislation: the law may change in a particular area of employment law which means your policy no longer provides the cover you require.

Changes to your business: if you change or add to what your business does you need to be aware of policy changes to ensure this can happen and that the new business is safe and compliant. If you business gets bigger you may find there is a need for new policies to govern an organisation of that size.

Change in strategy: the business may undergo a change in direction or even a change in brand that requires a different set of actions and behaviours from your people. Changing policies may be required to reflect this, particularly if you have frontline workers representing the business on a regular basis.

Change in personnel terms and conditions: you may need to change your benefit and reward policies in order to keep your business competitive in the talent market. If salaries increase within your sector you need to keep pace if you want to avoid attrition.

Always Remember

• Policies should be carefully designed to impact in the right way on the right employees
  Once a policy is in place, ensure it does have the desired affect. Are there conflicts created by someone upholding this policy or inefficiencies created by the policy? Does it help or hinder the workplace?
• Policies need to be understood fully by those who need to adhere to them, and they must be easily actionable
  Do your employees and managers understand the policy and is it something they are able to do as part of their work that does not interfere with the efficient running of their job? Is there any confusion or misinterpretation possible in the way it has been written? Is it clearly explained to those it affects?
• Policies should always remain under review, especially at a time of change for an organisation
  Businesses change, people change, governments change. There can be many influences which render a policy inadequate or obsolete, you need to be aware of when and how this can happen and be ready to respond as soon as possible.
• Policies must reflect legal requirements from the company, but they should also determine and support company culture
  There are many legal requirements which must be met by employers for their employees. From health and safety to pay and reward. HR policies can be designed to ensure the business meets these obligations. However some policies may be introduce to govern what the workplace is like – they can stipulate how things are done in the workplace and that has a direct impact on the culture of the organisation.
• Policies should be reviewed by legal experts where necessary
  If your policy has anything to do with upholding legal obligations it is a good idea to ensure it is check by a legal expert to ensure it meets the requirements and has the desired effect. When things go wrong it is the policy which will come under scrutiny: An employee who doesn’t follow the policy is one thing, a policy which isn’t up to the job required is another.

Conclusion

Every business need HR policies which govern and reflect the activities of the organisation. Policies will often grow with the business – rules and regulations emerging as and when required. Some HR policies do have legal implications because they are the way the business ensures it complies with employment law, but others are not legally binding. However, they may still form a condition of employment and could lead to disciplinary action or even dismissal if they are not followed. The content of HR policies and the way they are upheld will have a significant impact on company culture. In every case employees need to understand which policies are relevant to their work, how they can be actioned and maintained and what will happen if they do not follow the policy.

FAQs

Why do I need a policy?

Sometimes there is a legal requirement that can only be met through the creation of an appropriate policy, however as a general rule a policy is required if there is something in your business that needs to be done in a standardised and expected manner. A policy ensure that activity is always done in a particular way. If it isn’t an employee can be held to account.

How long should my policy be?

The policy can be as long or as short as is required for it to be understood and have the necessary impact. However it is worded it needs to be easily understood – or as easily understood as is possible – by your employees. Policies which are convoluted or long winded will confused people and may ultimately be ignored.

How many policies do I need?

Crucially policies are required when something needs to be done to a certain standard – for legal reasons or for the purposes of the business. They should be in place when the organisation needs to depend on something being done in a certain way – how someone is paid, how customers are treated, how employees interact with one another. The policies you have will depend on your business, sector and even the type of people you are employing. Again, you need to only do as much as is necessary – too many policies and employees will feel there is too much bureaucracy within the business. They may feel micro-managed or prevented from using their own initiative. Be certain to leave breathing space for employees to be themselves and make their contribution.

Can I take my policy from someone else?

Copying a policy from another company word for word would be an infringement of their copyrights, however you can take a policy as an example or model for your own. Bear in mind that policies are very much unique for organisations, because they impact on company culture it is unlikely that you would want to use someone else’s policy within your business.