Small businesses must include relevant and vital small business HR policies in their employee handbook. When a small business starts to draft their employee handbook, they are often confused as to which policies they must have in the organization.
The policies adopted by any company are in the best interest of the workplace and the employees. These also ensure that there’s a codebook outlining the organization’s expectations from an employee. That’s why it’s critical to have a well-defined HR policy ready.
So, whether you are a business owner or HR head leading an organization, it’s essential to know the policies that your organization needs. Some of these policies may include rules and regulations that are specific to the company.
In this article, we have listed core small business HR policies that shape an organization. Keep reading to learn what those policies are.
General Policies
Every organization requires some essential HR policies that include organizational frameworks and general regulations applicable to every employee. Usually, the company’s senior managers and leaders create these policy modules.
1. Specific Policies
Not every two companies are the same. It’s also common for different companies to have their own company-specific rules and regulations. Small businesses may have specific HR policies to deal with company specific circumstances and problems. These are specially crafted by the HR department.
2. Reward and Recognition Policy
This is the policy implemented by the HR department of a small business to promote a culture of acknowledgment and appreciation of the business.
3. Business Travel Policy
Many businesses employ people who have to travel on the company’s behalf. Small businesses must develop business travel policies to help the employees get reimbursement for the travel expenses incurred during the business travel.
4. Health & Safety Related Policies
Small businesses also have health and safety-related HR policies. This variety of policies ensures that the employees can report any work-related injuries or health and safety concerns under specific regulations.
5. Claim Reimbursement Policy
Many small businesses also include this policy to help employees get reimbursement for expenses done on the business’s behalf. This policy allows employees to request reimbursement if they have to spend any money on the company.
6. Termination Policies
When an employee has to leave the organization, their exit process has to be smooth. This should be done in compliance with a state’s state, federal, and local laws. This allows employees to sign off properly and smooth their professional transition.
7. Dress Code Policy
The small business HR policies also include dress code policies. This indicates the level of professionalism the company wants to maintain. The dress code policy includes the type of dress the employees need to keep. It also includes that it’s critical to maintain proper hygiene and grooming for the employees to maintain workplace etiquette.
8. Leave Policy
Small businesses also need to ensure that their employees have a good work-life balance. The leave policy is there to help employees get the flexibility they need and work happily without compromising their personal lives. The leave policy ensures the number of leaves employees can take in a year and the types of leaves they can take when needed.
9. Code of Conduct Policy
This set of policies includes what the employees must and must not do in the workplace to maintain an ideal work culture. The code of conduct policy is made using the ethics, mission, and visions of a company in mind. These HR policies have rules and boundaries employees must maintain in the workplace. Breaking any of these rules can lead to legal or company-specific consequences.
10. PMS Policy
Every organization has a business goal, and the goals are divided into different objectives and spread across the team members. The process of employee performance evaluation based on the objectives fulfilled during a financial period is what you call the PMS policy. The policy includes performance appraisal, employee promotions, and performance improvement modules.
Small businesses with around 10 to 50 employees must implement such policies.
11. Work From Home Policies
Small business HR policies should also include work-from-home policies. Now that work-from-home or remote jobs are more in trend, it’s important to include work-from-home policies in the company policy guidelines.
In addition, it’s also important to include the procedure to apply for WFH, eligibility, required deliverables, improving your work timing, and the mode of your attendance regularization.
12. Salary Advance Policy
It’s also important to consider if there is any salary advance policy. One standard policy to include in the small business HR policies provides for the disbursement of salary before time.
There should be policies regarding whether an employee can request part of their salary in advance or not. This should also include the process for such disbursement.
13. Time Management & Attendance
It’s necessary for any small business to include their time and attendance policies for the small businesses. The punctuality of your employees and their regularity help ensure that the business is at an optimum productivity level. In addition, it’s also easy to provide better customer service to your customers.
Every small business expects its employees to maintain a satisfactory attendance record. It not only helps the business maximize their productivity but also helps them evaluate employee performance when the time arrives.
14. TimeSheet Management Policy
Small business HR policies should also include what we call TSM policy. The policy is to help the employees ensure the tasks are time-tracked. As per the business goals, the tasks divided among employees need to be done within a specific time. Maintaining this timeframe helps small businesses accomplish goals and objectives and bring strategic business results.
15. Non-Discrimination
Small businesses also include a non-discrimination policy to stop others from legally harassing anyone at the workplace. This HR policy stands against the gender, creed, caste, class, and other societal divisions that might affect people in the workplace. Local and state laws usually govern these policies.
Small Business HR Policies to Include in Employee Workbook
An example of a well-crafted employee handbook includes all the policies outlining the company’s expectations from the employees. It’s a guideline for how an organization manages the employees and ensures compliance is maintained using laws and regulations.
A few good examples of essential HR policies that the employee handbook must have include –
- At will employment policy
- Non-discrimination policy
- Social media policy
- Anti-harassment policy
- Remote work policy
- Workplace violence policy
- Alcohol and drug policy
Implementing Small Business HR Policies
When including these policies in the small business employee handbook, here are things an employer must remember –
Also, one must not have any legal requirements to follow HR policies and procedures for safety and health disciplinary procedures.
- It must include a description of the workplace environment, workplace safety, confidentiality, harassment prevention, etc.
- A code of conduct is a must. It should include cyber security, conflict of interests, workplace relationships, dress codes, and other things related to employee behaviors.
- It’s also important to include information about the organization’s mission, vision, and values.
- Employee benefits.
Conclusion
No, there are no legal requirements for a small business to issue HR policies and procedures other than the health, safety, and disciplinary procedures. It’s important to stay up to date with the changing landscape of employment laws and information.
However, when a company is setting up its organizational structure, it’s best to usher in relevant policies that shape the company’s culture and workplace ethics. Did you find this article helpful? Share your feedback with us through the comment section down below. Thank you for reading.
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