What are Company Policies and Work Procedures?
Policies, together with work procedures, manuals and instructions, are the basic internal regulations of an organization that are used to manage processes and people. They are internal documents containing rules on how employees should perform their work, processes or how they should behave in different situations and workplaces. Guidelines typically apply to employees and also to external workers (contractors). The purpose of guidelines is to support the effective management of people and processes. It is one of the management tools because it contains information about who is to do what and how. They describe the responsibilities of both employees and employer, contain the rights of employees as well as the interests of the employer.
Why are policies and procedures important for companies?
Company policies and procedures communicate the organization’s values and set clear expectations for employee behavior and performance. They are used to outline internal company rules and workplace practices. Well-written policies clearly define acceptable and unacceptable workplace behavior, along with the consequences if employees do not follow them. Without documented procedures, it’s hard to demonstrate consistent good practices.
- ensure efficiency, consistency in processes, and quality of work
- set clear expectations and provide guidance for handling workplace situations consistently
- help ensure compliance with laws, regulations, and industry standards
- clarify expected employee behavior and job 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.
