Policies are, together with procedures, and detailed instructions, the core internal documents that help manage processes and people.
Policies are internal company documents that define fundamental rules and expectations for employee behavior. They typically apply to all employees and also to external workers (contractors). The purpose of policies is to support effective management of people and processes. They are a key management tool because they clarify who is responsible for what and how work should be done. Policies outline the responsibilities of both employees and the employer, and include employee rights as well as the company’s interests.
Why are Policies Important for Growing Businesses?
Policies communicate your organization’s values and set clear expectations for employee conduct and job performance. They outline workplace rules and day-to-day practices. Well-written policies clearly define acceptable and unacceptable behavior and explain the consequences for not following them. Without documented procedures, it’s hard to ensure consistent, high-quality work.
- improve efficiency, consistency in processes, and quality of work
- set clear expectations and provide guidance for handling workplace situations the same way every time
- support compliance with laws, regulations, and industry standards
- clarify expected employee behavior and performance
- serve as a training resource for employees, especially new hires during onboarding
What is the difference between Policies and Procedures?
Policies
- Policies are high-level guidelines or rules that set the direction for how tasks and activities should be carried out. They provide a clear framework for everyday business decisions and actions.
Procedures
- Procedures are step-by-step instructions that explain exactly how to complete a specific task or process. They guide employees through each action needed to follow company policies.
- Procedures are documented workflows that ensure tasks are done consistently and in compliance with the relevant policies.
Mandatory and Optional Policies
Every company has to have a set of basic policies required by legislation, laws, and regulations together with other documents that each company creates voluntarily, based on the needs of its processes and the company management.
Examples of mandatory policies (vary in different countries):
- Accounting policies and procedures
- Health and Safety Policy
- Equal Opportunities Policy
- Disciplinary and Grievance Procedures
- Bribery Policy
Examples of other company policies and procedures
- General company rules on the most appropriate way to behave (dress codes, email, internet policies, or smartphone use)
- Absence Policy
- PPE & OHS Policies and Procedures
- Security policy
- IT security policy
- Performance Management Policy
- Employee Code of Conduct Policy
- Internet and Social Media Policy
- Compensation and Benefits Policy
- Travel Expenditures Policy
- Purchasing Policy
- Legal Issues for the company (head off charges of harassment or discriminatory hiring and promotion)
- Workplace standards, rules, and regulations (safety rules, breaks, or smoking rules)
- Fair treatment for employees (benefits eligibility, paid time off, tuition assistance, bereavement, or jury duty)
- Employee onboarding policy
- Employee offboarding policy
How to Manage Policies
Some companies have an extensive and very detailed library of all the different policies and procedures, while other companies have only the most basic documents possible. It is important to maintain a balance and set the scope so that the firm is manageable. Typically, policies are in paper form in folders somewhere. Ideally, they should be in a digital form easily and conveniently accessible to all employees on the intranet, company DMS, team tools, wikis, or other means. Also, a lot depends on how often they are changed. Policies are "live" documents that require change and good communication with employees.
