10 Essential HR Policies and

Procedures
Learn what guidelines need to be included in your employee handbook.
It may be tempting to put off the task of writing up your official HR policies and
procedures, especially if you manage a startup or a small business. You may have
other, more pressing things to take care of – or maybe you just have a small team
and want to keep things friendly and informal.

But while trust between the employer and the employees is important, not having
clear and transparent guidelines is guaranteed to eventually lead to
misunderstandings. Don't wait for issues to arise to formalize your policies. Set out
clear ground rules for your employees, protect your rights as the employer, and
ensure your team stays on the same page.

Let's dive deeper into what essential HR policies need to be included in

your employee handbook.

 What are HR policies and procedures?

 The purpose of human resource policies
 How to write an effective HR policy
 10 HR policies to include in your handbook

What are HR policies and procedures?

Human resource policies are formal rules and guidelines that businesses put in
place to manage their employees. HR procedures, on the other hand, are step-by-
step instructions that specify what actions should be taken to comply with these
policies. Defining these policies and procedures is one of the core functions
of human resource management.

HR procedures often take the form of standard operating procedure (SOP)

documents. Here's an example of what a documented HR policy looks like
in Nuclino, a unified workspace for all your team's knowledge, docs, and projects
– create an account and start documenting your HR policies in one central place:

HR policy example in Nuclino

HR policies cover a variety of different aspects of human resource management,

such as:

 Recruitment
 Dress code
 Overtime compensation
  Vacation
 Sick days and personal leave
 Performance evaluation
 Termination

The purpose of human resource policies

While some HR policies are required by law, it's not the only reason they are
necessary. In addition to protecting your organization from legal claims, policies play
an important role in fostering a culture of trust, fairness, and inclusion.

The benefits of having clear and comprehensive HR policies include:

 HR policies provide legal protection to your company

 They transparently communicate the conditions of employment
 They set employee expectations with regard to their career growth
 They help you address employee grievances and disputes
 They speed up the decision-making process on various HR matters
 They help ensure all employees are treated equally and fairly
 They help create a safe and healthy working environment

How to write an effective HR policy

Keep the structure and formatting of your HR policies consistent. While every
company has its own internal templates for writing HR policies, the content is usually
quite similar and includes the following elements:

 Policy name
 Effective date of the policy (and dates of any revisions or updates)
 Name of the person responsible for updating the policy and answering
questions about it
 Purpose of the policy
 (Optional) Definitions of special terminology used in the policy
 Main policy statement
 Scope and applicability (including permissible exceptions)
To be effective and deliver on the goals mentioned above, the HR policies also need
to be searchable and easily discoverable by employees. Publish the HR policies in
your employee handbook or company intranet portal and share it with the entire
team.

Use internal links to organize related policies together and let your team browse the
employee handbook like your team's own internal Wikipedia.
10 HR policies to include in your handbook
The workplace is constantly evolving and modernizing, and it's important for your HR
policies to reflect that. Not every business invests time in updating its policies and
procedures, as demonstrated by the fact that 63% of Americans say their employer
still has no social media policy.

The exact list of policies you need to include in your employee handbook will depend
on a number of factors, the size, location, industry, and the unique needs of your
organization. However, there are several key policies that most organizations deem
necessary to have, regardless of circumstances.

Code of conduct
Code of conduct outlines the company's expectations of its employees in terms of
behavior, defining what is acceptable and what is not, and keeping the workplace
safe and comfortable for everyone. It usually addresses issues such as:

 Dress code
 Social media use
 Punctuality
 Alcohol and drug use
 Harassment and bullying

Recruitment policy
The recruitment policy usually sets out criteria for candidate selection and outlines
the new employee onboarding process. In case you have an employee referral
program, include it in this policy.

Termination policy
The termination policy, on the other hand, describes how an employee is expected to
give their resignation and the amount of notice required. It may also list the
employee actions that may result in termination.

Working hours and overtime policy

This policy needs to state how flexible the work hours are, when breaks can be taken
and for how long, and how to clock in and out. Explain how overtime work is handled
and compensated.
Attendance and remote work policy
This policy specifies whether the employees are expected to work from the office or
from home. If your team is allowed to work remotely, consider including relevant
procedures, such as how to request a home office allowance.

Performance evaluation and promotion policy

The performance evaluation policies are there to transparently communicate to the
employees how their jobs are graded and how performance is rewarded. It's there to
ensure that all employees are treated fairly and can be a great motivational tool.

Health and safety policy

No matter what industry your company belongs to, workplace injuries can be a risk.
The health and safety policy is there to outline the procedures and responsibilities of
all employees to keep the workplace safe for everyone.

Expense policy
Explain how expenses should be handled, for example, when employees go on
business trips or organize team events. In case they are expected to spend their own
money, describe the costs they can be reimbursed for and the procedures for doing
so.

Benefits and compensation policy

Your employees need to know when and how they will get paid and what benefits
they will receive. The policy should outline the payroll frequency and payment
methods, and list the additional benefits your business offers, such as medical
benefits, wellness programs, bonuses, allowances, and so on.

Leave policy
Taking a certain amount of time off work is what helps your team stay healthy,
happy, and productive. Let your employees know how long they are allowed to be
away from work and how they can request leave. Include specific policies that
pertain to vacation, sick leave, public holidays, childbirth, and so on.

Depending on your country and the industry you are in, there may be additional HR
policies and procedures you are legally required to include in your staff handbook.
Make sure to consult with a lawyer to make sure you haven't missed anything
important