September 1, 2024 
No matter the industry, every organisation needs policies and procedures to operate effectively and successfully.
Together, they guide your organisation and reduce the risk of liability. In addition, they promote consistency across the organisation for both employees and customers.
This consistency builds a healthy reputation for your organisation, especially regarding employee touchpoints with customers.
Successful organisations don’t see their HR policies as just a compliance requirement. Instead, they recognise that these vital components set guidelines and parameters for how their business operates.
Without adequate and well-developed policies and procedures, there are no rules. And unfortunately, without defined rules, people create their own.
So clearly, policies & procedures are essential to successfully running a business. But before delving deeper into why, let’s start by better understanding what they are…
What is a Policy vs a Procedure?
Policies and procedures go hand in hand but are not interchangeable.
A policy is a predetermined course of action, establishing the guidelines towards business strategies and objectives. It is the link between an organisation’s vision, values and day-to-day operations. Policies identify key activities and guide decision-makers on how to handle issues as they arise.
A procedure explains a specific action plan for carrying out a policy. In plain terms, a procedure is a road map. They eliminate common misunderstandings by identifying job responsibilities and establish boundaries for those jobs. Procedures enable managers to control events / issues in advance to prevent the organisation from making costly decisions.
Workplace policies have received a poor reputation, sometimes for being long or voluminous. However, in practice, a well-drafted set of workplace policies can play an essential role in protecting the employer’s interests while creating a positive workplace culture. They serve as a safeguard against potential legal issues and help in managing employee relations effectively.
Robust policies and procedures are not just administrative tools but are vital in shaping a fair, transparent, and efficient workplace. They help align the workforce with the organisation’s goals and values, ensuring smooth operations and legal compliance.
Why policies & procedures are crucial for your business
A well-drafted set of policies and procedures ensures that your company rules, standards, values, culture, and benefits are clearly outlined. By addressing common HR issues and questions, these policies provide a framework for fair and consistent treatment of employees. This framework ensures that any disciplinary actions, including termination, are conducted lawfully and fairly, thereby reducing the risk of claims of unfair dismissal or wrongful termination.
From an HR perspective, having well-defined policies and procedures is also crucial for several reasons:
Legal compliance.
Every industry has its own set of laws, regulations, standards and best practices that businesses need to abide by. In addition to those, policies & procedures help your organisation comply with international, federal, state as well as local laws and regulations.
Set by world trade bodies such as WTO (World Trade Organization), GATT (General Agreement on Tariffs and Trade) or the United Nations, these reflect the local regulations in each country.
Ensuring compliance requires organisations, and specifically their HR department, to continually review the current compliance environment. Policies & procedures are part of this environment and have to be updated based on new and changing laws, as well as industry best practices.
Workplace policies & procedures provide employees with the clarity of what is expected of them in all aspects of their employment; whilst also protecting organisations from legal liability when disruptions arise.
Improve internal processes.
As companies expand and evolve globally, internal processes can be challenging to follow. However, these are essential in ensuring consistency throughout the business. Whether this be in the level or quality of your customer service or product, your business reputation depends on consistency.
Policies & procedures clarify internal processes, ensuring they are achieved and helping employees provide value & consistency to customers / clients.
Help you navigate incidents & crises.
Policies & procedures can prevent workplace incidents with the correct safety measures in place if or when an incident occurs.
They keep organisations from overlooking incidents, preventing them from turning into a crisis. For example, whilst workplace incidents happen internally and can interrupt day-to-day operations, a crisis usually happens externally and can be harder to anticipate and control.
Examples of a crisis include disasters, faulty products, malware attacks, lawsuits. Policies & procedures detailing good customer service, as well as social media and communication plans can help your organisation reduce the damage in a crisis.
What’s more, policies provide a structured approach to resolving workplace conflicts and grievances. This helps in addressing issues promptly and fairly, preventing escalation and fostering a harmonious work environment.
Let employees know where they can turn for help.
Policies and procedures are important as they help clarify and reinforce the standards expected of the employee in all their professional dealings.
On the other hand, they also help employers manage staff effectively by defining what is acceptable and unacceptable in the workplace.
Furthermore, policies & procedures will set out the processes and options available to address any workplace grievances.
Hence, it is essential organisations take the necessary measures to properly explain their policies & procedures to their employees. Employees should be provided with a copy (either hard form or electronic) and they should sign an acknowledgement of receiving and understanding the policies.
Enable consistent processes & structures.
Policies & procedures keep operations from devolving into complete chaos. In fact, when employees follow clear policies and procedures, organisations run more smoothly.
Organisations will operate as they’re meant to, and mistakes and hiccups that occur can be quickly identified and addressed.
When staff are following policies & procedures, your organisation will be able to use time and resources more efficiently. As a result, you’ll be able to concentrate on expanding and achieve goals as an organisation.
Policies & procedures also help employees know what they’re responsible for, what is expected of them, and what they can expect from supervisors and co-workers. This also allows them to do their jobs with confidence and ease.
Types of policies & procedures every business needs
– Policies & Procedures for Attendance
– Policies & Procedures for Employee Conduct
– Policies & Procedures for Use of Company Property
– Policies & Procedures for Harassment & Discrimination
– Policies & Procedures for Internet and Social Media Use
– Policies & Procedures for Health & Safety
Polyglot Group strongly suggests drafting the following set of corporate policies and procedures that are typically applied by Australian businesses:
– Attendance, Hours of Work and Absenteeism
– Leave
– Performance & Misconduct
– Complaints & Grievances
– Work Health & Safety
– Equal Opportunity & Anti-Discrimination
– Recruitment & Selection
– Internet, Email & Computer
– Social Media Use
– Remuneration & Benefits
– Bullying & Harassment
– Smoking, Drugs & Alcohol
– Working from Home
Policies & procedures protect your business by complying with OHS legislation, National Employment Standards and Modern Awards.
They provide employees with an understanding of expected behaviours and performance standards while providing rules for the decision making process across an organisation.
The importance of policies and procedures cannot be overlooked. Without them, your business is exposed to risk.
Don’t wait for problems to arise—be proactive! By outlining acceptable behaviours and procedures, policies help in mitigating risks associated with employee actions, including reducing the likelihood of workplace accidents, misconduct, and other issues that could harm your organisation.
Contact our HR experts today to ensure your business is compliant and well-protected. Our team can help you develop and implement effective policies that safeguard your business and foster a positive workplace culture. Reach out now to secure your business’s future.
