HR policies and procedures give guidance on a range of employment issues and help to effectively implement an organisation’s HR strategy.
This factsheet looks at how organisations can benefit from introducing HR policies, the people responsible for developing policies in organisations of different sizes, and the types of policies.
HR policies provide written guidance on how a wide range of issues should be handled within an organisation. They include a description of principles, rights and responsibilities for managers and employees. They play a key role in supporting fairness and consistency across an organisation, as well as potentially helping to protect the organisation against legal claims. However, it’s the communication and implementation of policies that’s crucial in ensuring their effectiveness.
HR policies should support the wider strategy by adopting a tailored approach that reflects the size and unique culture of the organisation.
HR policies should flow from HR strategies and complement HR procedures.
HR policies can support trust, fairness and inclusion by outlining the responsibilities of both employer and employee. They can impact employee motivation, organisation reputation and the ability to attract and retain talent, creating mutual benefits for employees and organisations.
HR policies can also provide clear guidance that reflects regulations, for a range of issues. This can help avoid involvement with employment tribunal claims.
Certain HR policies and procedures may be necessary to comply with the law. For example, in the UK a written health and safety policy is required for any organisation with five or more employees, while there are also important legislative provisions surrounding the setting out of formal disciplinary and grievance procedures.
Even where a policy or procedure isn't specifically required by law, employers often find it helpful to have a policy in place to provide clear guidance that reflects the legal framework for handling the issue in question and it also helps employees to be clear about the organisation’s stance on a particular subject.
Organisations introduce or review specific HR policies for reasons including:
Organisations often develop formal HR policies as they increase in size.
Typical practice across organisations of differing sizes includes:
Our Profession Map has fuller details on different roles in the people profession.
What HR policies should organisations have?HR policies should be based on the unique needs and characteristics of the organisation and its workforce.
Consider the type of policies that may be relevant during the course of the employment life cycle:
An organisation might have a policy setting out its criteria for selection, together with policies for new joiners on topics such as inductions and referral payments.
Policies might address areas such as how jobs are graded and how performance is rewarded; together with provisions for aspects of compensation packages, such as pensions/additional voluntary contributions and other benefits and allowances.
Policies might cover a disparate range of topics from prevention and management of work-related stress to handling hazardous materials.
As well as disciplinary and grievance policies, examples include: time off and leave for trade union activities, holidays, secondment, volunteering, parental or caring duties (such as maternity or paternity leave), communication, involvement and other employee behaviours, including employee voice and harassment and bullying.
Issues that might be covered by policies in this area would include courses and secondment opportunities, talent development, payment of professional fees and so on.
Other policies that organisations may want to consider include diverse areas related to the wider business needs (for example corporate responsibility or anti-bribery measures) or those associated with technology and new ways of working (the use of social networking sites, for instance).
There are many reasons why employment ceases, from voluntary resignation to dismissal, redundancy or retirement – some or all of which might be covered by formal written policies (for example, including information on notice periods or the nature of redundancy consultation).
Equality, inclusion and diversity should run through all aspects of an organisation's policies. In the UK, discrimination on many personal characteristics, such as gender or race, is unlawful at all stages of the employment life cycle, while managing inclusion and valuing diversity is central to good people management and makes good business sense. Good practice suggests that an overarching equality and diversity policy should expressly inform the organisation's vision and values. The issue might then also be incorporated into many other policies (for example, recruitment and selection and reward).
HR policies may need to extend to partnering arrangements such as joint ventures, outsourcing, strategic alliances or public-private sector commissioning models. It's advisable to consider where common policies may need to be applied or reviewed in light of new organisational arrangements. Find out more about our Beyond the organisation research.
Sourcing information for HR policiesFor CIPD members, our employment law Q&As have fuller details on legal requirements - explore the Knowledge hub to find these by topic.
In-depth guidance on HR policy development, together with a wide range of model policies, procedures, letters and forms, is available from our subscription service HR-inform.
Some organisations (particularly in the public sector) make their policy manuals available online. These are often a good starting point, but it's vital to assess the reliability of the source (date of production, size of organisation, culture and so on).
Many commercial organisations offer ready-made policy solutions, usually for a fee, which can be tailored to suit individual employers. But, again, assessing the reliability and suitability of the source is essential.
It's particularly important to check any relevant codes of practice and ensure compliance with legal requirements.
Introducing and reviewing HR policiesThese guidelines will help when introducing and reviewing HR policies:
All policies should be written in plain language. When technical terms are unavoidable, it’s useful to include a short glossary. It’s also helpful to include the date of publication or review, as well as who to approach with queries.
It’s important not to assume that the policies in place are always right. Some policies, for example mileage allowances, might be revised annually. Others might be reviewed in the event of legislative developments or on an ad hoc basis. For example, adjusting working practices during the COVID-19 pandemic, and resetting post pandemic, meant creating new policies and then adapting these for many organisations.
Turning HR policy into practice requires working across the business to ensure that leaders, line managers and employees fully understand the policies and expectations (including any updates). The format for communications will depend on the organisational culture and nature of the policies. See more on employee communication.
Since line managers are pivotal in bringing HR policies to life, training, engagement and support are crucial to ensure that managers have a clear understanding of the policies, and have the capability to implement policies sensitively and fairly. Read our factsheet on Line mangers’ role in supporting people professionals.
Induction plays a key role in making sure new employees are aware of all the policies and procedures within an organisation.
Useful contacts and further readingCIPD members can use our online journals to find articles from over 300 journal titles relevant to HR.
Members and People Management subscribers can see articles on the People Management website.
This factsheet was last updated by David Hayden: Owner of Talent Delivers and former CIPD Digital Learning Portfolio Manager
David has designed and delivered a number of L&D-focused products and keeps his practice up to date by facilitating online events.
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