Why Have Personnel Policies & Procedures?

by Marcia Moore, MSSW

Policies are general guidelines that regulate employee actions in a company. Procedures are customary methods of handling activities and can be more specific than policies. For example, a policy may state that an employee is entitled to expense reimbursement for certain business items. Procedures establish a specific method (required form, coding of expenses, date for submission, and person responsible for expense reports) for submitting an expense report.

Purpose of Personnel Policies and Procedures

Developing clearly written policies and procedures that are documented, updated, and followed brings structure to an organization and assists in the day-to-day decision-making processes. Policies and procedures need to be adaptable to the needs of the company and enforced across the organization. Policies and procedures also serve as a internal control method so managers cannot take free license to make creative or unauthorized decisions.

Types of Policies

Policies provide several types of information that new and established employees need to know. New employees need to understand such factors as dress requirements, breaks and lunch practices, working hours, electronic equipment use, treatment of company property, and confidential information. All employees must understand policies in regards to vacation, sick time, leaving early, holiday pay, medical leaves, and benefits. Supervisors and managers have policies that explain discipline processes, coaching, and counseling employees.

Relationship of Policies and Procedures

There is a relationship between policies and procedures. For each clearly defined policy, there needs to be a written communication on how to apply the policy, how it is enforced, whom it affects, and who is in charge. Policies and procedures need to be accessible to all employees. Some companies develop manuals or handbooks to provide to employees. Other companies may keep the information in a software package accessible by computer. For example, if an employee reviews the policy on applying for a vacation, a procedure should be available to explain the necessary steps.

Policy and Procedures Owners

Policy and procedures owners are held accountable for the timely review, updating, and distribution of this information. In some companies, the human resources department, which usually handles employee business, is responsible for the development of policies and procedures as well as supporting their enforcement. In smaller companies, a supervisor or manager may be responsible for maintaining the documents.

Policies Required by Law

Some policies are required based on legal responsibility. Title VII of the Civil Rights Act of 1964 require that companies provide a work environment that is free from any form of sexual harassment. Based on this requirement, some companies have established a "zero tolerance" sexual harassment policy that can lead to immediate termination in some cases. The Equal Employment Opportunity Act prohibits companies from discriminating against any present or potential employee on the basis of race, sex, religion, country of origin, and color. In response, companies have strict policies for recruiting, selecting, and treating employees.

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