Importance Of HR Policies In An Organization

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Want to know Importance Of HR Policies In An Organization? Then this post is for you. Inside you'll find why HR policies and procedures are essential. Read more...

Want to know Importance Of HR Policies In An Organization? Then this post is for you. Inside you'll find why HR policies and procedures are essential. Read more...

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November 25, 2022
Importance Of HR Policies In An Organization
Importance Of HR Policies In An Organization

Human Resource policies are consistent regulations through which a company intends to manage its people. They are made up of several particulars related to employment and the organization's intent on different aspects of HRM, such as hiring, promotion, payroll, training, and onboarding. 

This is where the importance of HR policies comes into play. It works as a reference point when HR management practices are developed or decisions are made for a company's workforce.

An efficient HR policy offers general guidance on the approach an organization should adopt and the actions it should take in line with the policies concerning several employment aspects.

Quick Summary

What you’re going to learn about engagement activities for virtual teams:

  • What is the importance of HR policies in an organization?
  • Importance of HR policies and procedures
  • What are the advantages and disadvantages of HR policies?

What Is The Importance Of HR Policies In An Organization?

HR policies provide employees with a framework to understand the advantages derived from the processes' consistency. 

The policies help a company exhibit, externally and internally, that it meets the needs for diversity, ethics, and training, along with commitment regarding corporate governance and rules. For example, it is necessary to meet employment agreements and bargain contract provisions to dismiss a worker according to employment law requirements and other considerations. 

An HR policy sets behavioral standards and obligations and documents the disciplinary process to meet the responsibilities. They offer a structure to make consistent decisions.

HR policies are excellent at supporting and developing the needed organizational culture. For instance, hiring and retention practices may describe how the company treats a flexible workforce. Compensation policies may keep it by providing a 48:2 pay option where workers can take other work week vacations per year and earn less pay.

Actually, HR policies and procedures help with several things:

  1. Offering clear communication between the company and its workforce about the employment terms and conditions
  2. Forming a base to treat all employees equally and impartially
  3. Setting guidelines for managers and supervisors
  4. Creating a base to develop the workforce handbook
  5. Establishing a base for reviewing changes impacting teams
  6. Forming a context for companies' training programs and employee recruitment programs

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Importance Of HR Policies And Procedures

When HR policies and practices are adhered to, operations are smoother, management is strategic, and operation productivity standards are high. Mistakes are bound to occur, but in a well-disciplined company, these errors are picked up faster and with a higher scope of rectification.

It helps smooth the use of human and other resources with faster growth to meet the company's goals. Policies and practices also explain every employee's responsibilities, expected outcomes, and what their supervisors and colleagues deliver. It boosts confidence and improves output quality.

1. Enhanced customer service

A well-monitored and controlled team works consistently and leads to happy clients. It enhances your brand value positively, and companies can take more pride in the quality of their output.

2. Improved safety in the workplace

Safety and health are the major concerns of a workplace. Policies and processes are fundamental regulatory parts of reducing accidents at workplaces. It limits your risk profile and boosts employees' well-being. It further lowers injury claims and damage to assets. When employees receive care from their employees, they work more efficiently.

What Are The Advantages And Disadvantages Of HR Policies?

In a business environment, the HR department manages all employee relations aspects. Tasks differ by company but generally involve staffing and business operations.

According to Spring HR, the importance of HR policies and procedures is that they allow employees to be on the same page and optimize daily business operations. With the right HR strategy in place, employees may understand a company's work culture and expectations, leading to a chaotic workplace environment.

Advantages Of HR Policies

1. Recruitment and employment

Hiring employees is an essential HR function. So, as per Oracle NetSuite, recruitment is the first advantage of HR policies. The policies involving recruitment and selection procedures inform employees what the company expects and what its requirements are. It is vital if an employee is seeking to find a job.

Important To Know: How To Negotiate Salary With Candidate?

2. Rehiring and promotions

HR policies explain the process of rehiring and promotion. It involves the conditions for rehiring a terminated employee and the company's promotion process.

Usually, employees who leave the company have a higher chance of rehire, and employees performing satisfactorily or higher than expected has an opportunity for promotion. HR policies include what employees should do in these situations.

3. Compensations and evaluations

Human resources staffers combine several job evaluation technologies and market reports to know the amount to compensate a worker while staying competitive in the workforce. Also, the department sets policies that assess and manage employee performance.

While policies don't specify the amount the employee will receive, they mention that employees are compensated according to their skills, responsibilities, and effort. 

4. HR development policies

The Virginia Department of Human Resource Management states that HR policies involve training and professional development provisions. This way, employee knows the resources they have in hand. The human resource management and development policies assure old and new employees of their responsibilities and the help available.

5. Employee issues and responsibility

The list of HR policies inform employees on how to deal with problems at work. Whether it includes co-workers, management, or work, employees should have someone to share their concerns with in secrecy.

The applicable law mentions the chain of command handling the problem, such as employees speaking to their supervisors, managers, or HR.

6. Company ethics and rules

HR policies also describe internal regulations and the company's code of conduct and ethics. It involves things like dress code, personal and sick leaves, holidays, working environment, workplace safety, equality, inclusiveness, diversity, and professionalism.

By outlining the regulations that add to good company behavior, employees know what employers expect of them.

7. Labor law application

Labor laws are extensive. A list of HR rules in a company includes applicable laws for employees. The rules deal with overtime, minimum wage, and employee benefits and ensure on-time paychecks and record-keeping.

8. Termination grounds

HR policies state the termination grounds for an employee. The grounds help protect the company from retribution if they were fired for violating regulations stated in the company's manual.

Disadvantages Of HR Policies

1. Rigidity to business operations

Policies are consistently used plans bringing rigidity to business operations and offering no space for new initiatives.

2. Limited coverage

HR policies may not cover all the issues. There may be unforeseen situations that are not covered in the current HR policies.

Ensuring compliance is not simple. It takes time, patience, and guidance. The more subtle and reliable your policies are, the better your workforce and working culture will be. 

Get Your HR Policies In Place

With the importance of HR policies available in front of you, as a company, it gets important to implement the same to enhance the productivity of your team and company as a whole. Hire good HR consultants to help you implement the HR policies in your company with ease.

Importance Of HR Policies In An Organization
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