10 Company Policies Every Business Should Have

Company policies are rules and regulations that help run a business. With clear policies in place, employees and the employer benefit since everyone knows their rights and expectations in a company.

Policies help set behavioural and performance standards that help make the work environment safe for everyone.

Every company must have policies and procedures governing daily operations, especially businesses with employees. The policies each company puts in place may vary depending on the services or products they sell.

Some business policies must comply with the law, but a company will still need to CREATE others and put them in writing for employees to find guidance.

Here's a list of 10 company policies every business should have to ensure consistency in overarching company principles and cultivating a work culture that boosts productivity.

Equal Working Opportunity Policy

As an employer with a workforce, you must provide equal working opportunities for all by law. It's illegal to discriminate against someone because they possess one or more 'protected characteristics'.

Protected characteristics include:

1. Gender reassignment
2. Sex
3. Pregnancy and maternity
4. Sexual orientation
5. Disability
6. Civil partnership
7. Religious beliefs

However, an Equal Opportunity Policy (EOP) sets the ground for companies to ensure no one is discriminated against because they're a protected class member. A company should consider the EOP to prevent instances of harassment and workplace violence and develop non-discrimination or diversity policies.

Health and Safety Policy

Occupational safety is necessary for everyone who owns and runs a business, regardless of size. Accidents in the workplace and unsafe conditions can cause a chain of reactions that land you in court.

If you consider the damage to your reputation, loss of faith from employees, or the dissatisfaction that can happen due to lack of safety, it's a grave mistake.

A written health and safety policy indicates that you take matters seriously. Health and safety policy goes beyond having several fire extinguishers at work to creating a safe, enjoyable environment for employees.

Employee Code of Conduct Policy

There's an expected way to behave at work as an employee, and employers must make it clear through writing.

Clear communication is a prerequisite for compliance, yet misunderstandings can still occur.

As an employee, you're expected to get to work on time, complete your duties on time, and behave in a certain way while at work. The rules must be clear and accessible to everyone in the workplace for consultation.

The most effective way to ensure everyone walks in their lane and reduces conflicts is to have a written code of conduct. When an employee joins the organisation, they'll know what is expected of them.

The employment code of conduct policy is consulted when an employee faces disciplinary action, like termination of employment. With the proper rules and regulations in place, many issues will be avoided, like problems with workers' unions or legal matters.

Quality Policy

High-quality goods and services are essential, and every business should strive to provide them to its clientele. Whatever you offer should meet the customers' expectations and surpass them to build a good reputation and a successful business.

Leave Absence Policy

Employees will be absent from work from time to time for different reasons like illness, vacations, or personal matters. How do you deal with it? Employees should know when they can or can't ask permission and what's allowed.

The law mandates that every employee is granted a paid annual leave, weekly paid time off, and maternity leave. These days off work require different treatment and it should be clear to all employees in writing to instil discipline and consistency among them.

Let every employee know when to take their leave and for how long. If it's about sick-off days, what is expected of them should be in writing, like how many days they can stay away from work, if they'll be paid, and the paperwork they must present for verification.

Corporate Social Responsibility Policy

Corporate social responsibility is a strategic decision to which businesses are obligated to society. There should be clear guidelines on how to deal with sponsorship issues, caring for the environment, or organising community charity events. These activities may not be profit maximising, but they better public welfare and gain a good reputation for the business.

Customer Service Policy

The core of every successful business is high-quality customer service. Treating customers right helps the company prosper and keeps customers loyal. Customers will constantly return to where they're valued over and over again, which increases sales.

An unbeatable working operational model of customer support will trigger employees to develop and uphold company standards. Clear business policies drive home what's important to the company. Plus, it allows business owners, managers, and employees to communicate effectively and enforce company policy.

Employee Disciplinary Action Policy

Employee conflicts aren't uncommon, no matter how strict you may be in your business. Hence, a clear disciplinary policy is needed to ensure everyone understands what to expect when they misbehave or come short of what is expected.

Let the policy state clearly why, what circumstances they'll be disciplined and to what extent.

You provide a standardised step-by-step process for handling a disciplinary case to ensure fairness and appropriate employee treatment. Although you don't have to disclose the entire process, relay the most critical information.

When employees know of a disciplinary action process, they see the employer doesn't tolerate severe or repeated violations. Let them understand your values and remedial actions in case of minor offences, but to WHAT LIMIT? However, before listing some of these actions, consult a lawyer to ensure your disciplinary action policy is within the law.

Employee Complaint Policy

Let your employees know how to file or document workplace grievances through an employee complaint policy.

Grievances can arise from an incident act or conflict between employees or other reasons like financial issues on the payroll or bullying.

The policy should also outline the formal process of resolving these complaints within the company so that employees know how to address their concerns professionally. A retaliation policy is also essential to protect employees who launch complaints in good faith against coworkers, supervisors, or managers.

Internet and Email

The internet is taking over the world and is a part of our daily business activities and personal life. At work, emails are the most popular mode of communication and you should persuade employees to check their work mail daily. As a result, they avoid missing important information like deadlines.

Having internet and email policies at work will ensure information is distributed on time. Plus, employees must know they shouldn't browse personal stuff during working hours or the office internet.

Another stumbling block to productivity aided by the internet is the use of social media. These platforms can be distracting, and employees can only focus on the job with proper guidance.

The Importance of Company Policies

Company policies guide employees on what is expected of them at the workplace. The policies are written for everyone to refer to when need be and live by them.

Good policies boost performance, values and behaviour in the workplace. Plus company policies can also act as pre warnings to employees about the consequences of not adhering to set rules. So, why are company policies important?

1. Setting clear expectations
2. Maintaining accountability in the management
3. Guaranteeing compliance with the law
4. Providing defence against legal claims
5. Ensuring fair treatment of employees

How to Create Company Policies

Workplace policies will help run your business smoothly, address workplace issues appropriately, increase productivity, and impact growth. When creating company policies, here are a few steps to help you:

1. Identify the Need

Create policies according to the needs of your company. Observe how the management and employees deal with workplace issues and identify ways to help fix them better. Company policies should improve the work environment and make everyone safe.

If the policies you have in place are in constant violation by employees, it's time you make new rules that address the shortcomings. Also, if matters still need to be provided for in the existing company policies, you should include them.

2. Determine What's Needed for the Policy

Determine the areas in your business that need to be addressed. Within the policies you write, include clauses to prevent future loopholes that may arise to compromise work or the safety of your employees.

Consider all aspects of the policy detailing what you want your employees to do and what you don't want them to do. However, you should also ensure the policies you put in place are reasonable to avoid boxing your employees into a corner and pushing them to break the rules.

You should also include the disciplinary action they should expect for breaking the rules. If it feels complicated, consult an attorney for guidance in making effective company policies.

3. Communicate the New Policies

Employees need to be informed of new or revised company policies. You can create a handbook with all policies and add a signature line where employees sign and indicate the date they sign it.

Signing on company policies is a step that ensures there's no future conflict if they break the rules or claim they didn’t know the policy exists. Employees can make flimsy excuses when receiving disciplinary action for violating company policies.

As you create company policies, consider discussing and reviewing them with employees, especially during onboarding, so they know what is expected of them.

4. Update and Revise Policies When Necessary

Consider updating or amending your company policies as days go by for your business and employee's sake. Amend policies to ensure they align with company objectives and any feedback given by employees or customers.

Form Your Company with Incorpuk Today

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Frequently Asked Questions

What are some examples of company policies?

Examples of company policies include dress code, behavioural code, employee conduct policies, and work attendance policies. Employees should be presented with a written handbook with the policies and a place to sign as a show of commitment.

What should a company policy include?

A company policy includes what is expected of them, what can happen if employees don't adhere to these guidelines and any restrictions that may apply. Besides, a clause should provide the disciplinary actions that follow whenever these rules are broken.

What are the elements of company policy?

The elements of company policies are created under four environments: Social, structural, economic, and political.

In Summary

To a company, policies are the guidelines for daily business operations. Company policies are the framework and constraints that guide individuals to strive for collective success in an organisation.

In a company that has multiple employees, policies keep everyone in check. When creating policies, consult with local, state and federal regulations to ensure the policies you develop comply with the law.

Ensure you leave room for improvement by avoiding definitive or binding statements to ensure you are not held accountable for employees who don't adhere to these guidelines.

Ensure you train employees on company policies to understand everything, allow them to raise issues where applicable, and render a signature as acknowledgement. Putting these measures in place will reduce workplace confusion, conflicts, and misunderstanding. Do you have any questions about Company Policies Every Business Should Have? Kindly contact one of our Incorpuk experts here for help.