What HR policies should every company have?

Essential policies include: equal employment opportunity and anti-discrimination, harassment and workplace conduct, attendance and punctuality, compensation and pay practices, benefits eligibility, paid time off and leave, disciplinary procedures and corrective action, workplace safety, confidentiality and data protection, social media and technology use, and remote work guidelines.

How often should HR policies be reviewed and updated?

At minimum, policies should be reviewed annually to ensure compliance with changing federal, state, and local laws. Policies should also be reviewed when: major legislation changes (new leave laws, pay transparency requirements), significant organizational changes occur (mergers, remote work shifts), following a legal or HR incident, or when employee feedback indicates gaps.

What is the difference between an HR policy and an HR procedure?

A policy defines the organization’s position or rule (the ‘what’ and ‘why’). A procedure defines the specific steps taken to implement or comply with the policy (the ‘how’). For example, a policy states that all employees are entitled to FMLA leave; the procedure outlines how employees request it, what documentation is required, and how HR processes the request.

How should HR communicate policy changes to employees?

Best practices: provide written notice of changes with effective date, publish updated policies in the employee handbook (electronic or physical), require employees to acknowledge receipt, hold manager briefings so they can answer questions, highlight key changes rather than just redistributing the entire handbook, and maintain records of employee acknowledgements.

What happens if an employee violates an HR policy?

Policy violations are typically addressed through the organization’s disciplinary procedure, which may include verbal warning, written warning, performance improvement plan, suspension, or termination depending on severity. Consistent enforcement across all employees is essential : selective enforcement creates legal liability and undermines policy credibility.

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HR Glossary

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HR Policies

HR Policies provide guidance and structure for employee treatment, decision-making, and expectations, ensuring fair treatment, legal compliance, and positive work environment.

Summarise this term with:

The purpose of HR Policies is to provide a consistent and fair approach to managing human resources, and to ensure that the organization is in compliance with relevant laws and regulations.

What is HR Policies?

HR Policies are a set of guidelines and procedures established by an organization to govern how it will handle various human resources related issues.

Image showing the meaning of HR policies

These policies can cover a wide range of areas, such as recruitment and hiring, employee benefits, performance evaluations, disciplinary actions, and termination procedures.

The purpose of HR Policies is to provide a consistent and fair approach to managing human resources, and to ensure that the organization is in compliance with relevant laws and regulations. HR policies also communicate expectations and provide guidance to employees, managers, and HR staff. HBR’s HR policy insights

Types of HR Policies

There are many different types of HR Policies, but some common categories include:

Recruitment and Hiring Policies: These policies outline the procedures and guidelines for recruiting, interviewing, and hiring new employees.
Compensation and Benefits Policies: These policies explain the company’s approach to setting and adjusting employee pay, as well as outlining the types of benefits that are available to employees.
Performance Management Policies: These policies describe the company’s approach to setting and measuring employee performance, as well as outlining the procedures for providing feedback and addressing performance issues.
Employee Relations Policies: These policies cover topics such as communication, conflict resolution, and workplace conduct, and describe the company’s expectations for employee behavior and how conflicts will be handled.
Leave and Time-off Policies: These policies outline the company’s procedures for granting time-off for vacation, sick leave, family leave, and other reasons.
Health and Safety Policies: These policies describe the company’s procedures for ensuring a safe and healthy work environment, including guidelines for preventing accidents and injuries.
Diversity and Inclusion Policies: These policies outline the company’s commitment to diversity, equity and inclusion and how it is implemented
Cyber Security Policies: These policies outline the company’s procedures and protocols to protect sensitive information and prevent cyber-attacks.
Social Media Policies: These policies outline the company’s guidelines for employees’ use of social media, both during and outside of working hours.

What is the Process of creating and implementing HR policies?

The process of creating and implementing HR Policies typically involves several steps, including: SHRM’s HR policy templates and guidance

Identification of Need: The first step in creating an HR policy is to identify a need for it. This could be due to a change in laws or regulations, a new business initiative, or a problem that has been identified within the organization.
Research and Analysis: Once the need for a policy has been identified, research and analysis should be conducted to gather information on best practices, legal requirements, and potential impacts on the organization and its employees.
Policy Development: With the information gathered from the research and analysis, the policy can be developed. This typically involves drafting the policy, seeking input from relevant stakeholders (such as legal counsel, employee representatives, and management), and getting approval from the appropriate decision-makers within the organization.
Communication and Training: Once the policy is approved, it needs to be communicated to all employees and relevant stakeholders. This may include holding training sessions or workshops to ensure that everyone understands the policy and how it applies to them.
Monitoring and Review: After the policy is implemented, it needs to be monitored to ensure that it is being followed and that it is achieving its intended goals. This may involve gathering feedback from employees and conducting regular reviews to assess the policy’s effectiveness.
Updating: Policies should be reviewed and updated regularly to ensure they are still relevant and comply with laws and regulations.

Clear, current HR policies form the foundation of a fair, compliant workplace that helps organizations attract and retain top talent. Organizations using pre-employment assessments ensure every hire is grounded in verified skills. A data-driven hiring plan reduces mis-hire risk, while strong talent acquisition practices focused on skills-based hiring help organizations attract and retain top talent.

Frequently asked questions

HR policies are formal written statements that define how an organization manages its relationship with employees. They set expectations for behavior, establish consistent procedures for common situations, communicate employee rights and obligations, and ensure compliance with employment law. Policies are typically compiled in an employee handbook.

Related terms

HR Business Partner

HR Business Partners (HRBP) aligns organization’s human resources strategies with overall business objectives, acting as a liaison between HR and the rest of the organization and provides guidance and support on a wide range of issues.

HR Chatbots

HR chatbots are artificial intelligence (AI) software programs designed to assist with HR tasks and support employees.

HR Compliance

HR Compliance refers to the adherence to laws and regulations related to the management of employees and their rights, ensuring fair treatment and protecting the company from legal action and penalties.

HR Consulting

HR Consulting provides expert advice and guidance to organizations on various aspects of human resources management, including recruitment, employee relations, compliance and helping organizations achieve their business goals.

HR Department

HR Department is responsible for managing and coordinating human resources functions within an organization, including recruitment, employee relations, compliance, and training.

HR Director

HR Director manages and oversees the human resources department of an organization, responsible for recruiting, employee relations, compliance and fostering a positive work environment.

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