5 Company policies your company should not exist without

A fast growing business is a wonderful thing, but once you have more than a few employees it’s time to sit down and take a hard look at company policies. Company policies show employees know what to expect, both in terms of performance and compensation. These important policies should be compiled into an employee handbook.

These company policies also serve to protect the company from liability by setting clear hiring, disciplinary, and conduct standards that meet industry regulations. More than this, clear and communicated company policies build a positive and diverse company culture that will lead your company to success.

Drafting these company policies is not something to be taken lightly. Company leadership and HR staff must work together to create employee policies that are fair and further the ends of the organization. All company policies should be reviewed by an attorney before implementing.

These top 5 company policies are a must for any company that employs workers.

1. Attendance, time off, and vacation policies

A set attendance policy is vital to the operation of any business. Not only do you need reliable staff to operate, your employees also need to know what is expected of them and what happens when they don’t meet those expectations. Include policies on what happens when an employee accrues a specific amount of work through lateness or absence. It should also outline how much unpaid and paid time off (PTO) employees are given and how they can request to use vacation time.

Attendance and time off policies have gained importance since the pandemic,  and employees are looking harder at benefits like PTO. Be prepared to share your attendance, PTO, and vacation policies with applicants when interviewing for an open position. Clear instructions for requesting time off should be included in the employee handbook as well.

2. Disciplinary action policies

Creating company policies and providing them to your employees isn’t enough to protect your company and keep it running with reliable and productive employees. Companies must be prepared to hold employees accountable, but also have an obligation to make employees aware of how that will be accomplished. From written warnings to grounds for termination, every employee should know what is expected of them and what will happen if they don’t comply with company policy.

Disciplinary procedures should be included in the employee handbook. Listing out step by step how the process works and the results of each breach makes employees aware of their rights and responsibilities so that they can reasonably be held accountable for their actions within the company.

3. Remote work policy

The Remote Work company policy is a fairly new addition to most employee handbooks, even in well-established companies. The pandemic made companies change the way they worked, including allowing some employees to work from home under certain conditions. Many employees today demand the ability to work from home at least on a part time or occasional basis. If your company plans to follow the trend, make sure you have a clear policy on how and when employees can work remotely.

Examples of remote work policies dictate where the employee may work, under what conditions, and during what hours. Restrictions on using shared networks or specific equipment also belongs in the remote work policy. Make sure it is clear what equipment they will be responsible for and the costs they may incur. It should also clearly state what will happen if equipment provided by the company is damaged while in possession of an employee working remotely.

4. Employee Code of Conduct Policy

The Employee Code of Conduct should be the first document in your employee handbook. This document outlines exactly what is expected of the employee. Separate from the job description or contract listing duties and responsibilities, the code of conduct policy should clearly state how an employee should conduct themselves on-site or when representing the company.

There are many issues that can be addressed in a code of conduct policy, with the most common being sexual harassment, substance abuse, and dress code. Other code of conduct policies include dress code, mobile phone use, computer use, and confidentiality when on the clock or acting on behalf of the company. The code of conduct policy is also the place to include expectations when dealing with vendors, customers, and other entities, including accepting gifts and entertainment expenditure limits. These may also be outlined in the employee’s contract for specific positions only.

Some companies also take advantage of this company policy as an opportunity to lay out additional guidelines for employees and their conduct on or off-site, both during or outside of business hours. A company relying heavily on social media may include the stipulation that employees cannot refer to the company in social media posts not approved by the company. Even though the employee is on their own time and their private social media, the company can restrict their use of the company name.

5. Equal Opportunity Employment Policy

The United States Equal Employment Opportunity Commission (EEOC) requires companies hiring employees to have an equal opportunity employment policy. This policy must state that hiring, disciplinary, harassment, and termination activities are not based on race, religion, gender (including pregnancy), sexual orientation, nationality, age, disability, or genetics. The policy should include guidelines for workplace accommodation of disabilities and address retaliatory practices. It should address harassment, workplace violence, nondiscrimination, and diversity policies as well.

The EEOC has different requirements for certain industries or company makeup, so it is important to familiarize yourself with these regulations before hiring. This policy should be noted in listings for open positions and be given to any applicant upon request. It should also be at the front of your employee handbook. The policy must be posted in a break room or other employee area with the required posters from the Department of Labor in a location that meets department criteria.

Key Takeaways

These 5 company policies are just a start of what your company should include in their employee handbook. Employees should be made aware of all expectations, guidelines, and consequences of their actions. Job duties and responsibilities should be clearly outlined, with step-by-step instructions for handling delicate human resources issues. Equal opportunity, code of conduct, and attendance policies are the minimum necessary for effective employee management.