Writing a Corporate Policy and Procedures

imagesCAFCMRCNOne of the most dreaded assignments, a Human Resource personnel can imagine is being given the task of writing the corporate policy and procedures. Most HR personnel would know that it involves substantial amount of work, which includes data mining, budgeting, understanding employment regulations, corporate culture, terms and conditions of employment and at the same time fulfilling business objectives, as most corporations are profit driven.

Let us examine what are the basic salient features one has to be aware of when writing a corporate policy and procedures.

  • Consistent Structure

Establish a consistent structure that would be eyeball friendly and allows comfortable reading. Corporate policy can be rather wordy, directive and serious. Proper paragraphing with double spacing does help the reader focus better.

  • Easy Finding for Information

Ensure that headings are prominent, bold and/or underlined. A proper content page with references is a must for easy navigation. All pages should be paginated.

  • Statement as to why the policy exist

Briefly explain why the policy exists. This helps the employees understand the advantage and rational of having such a policy. Take a positive approach and use persuasion rather than just being directive (if possible). For example, most companies prefer their employees to consume their annual leave on the same year that their leave is being earned. Take a positive approach by showing concern that the employees should use their leave to rest and spend time to socialize with family and friends. This approach may earn respect from the employees as it exhibits a caring employer. There are of course negatives, in accumulating accrued leave as most employers may see this as a cost factor if accumulated substantially, but such reasons need not be said in the policy as it exhibits a negative statement to the employees.

  • Clear Definitions

Definitions must be clear and unambiguous. If an employee can misconstrue a definition for their own benefit, they will do it. This would of course make it difficult for Management to execute that particular policy or procedure.

  • Scope of Coverage

Explain which policy covers a specific defined set of employees and why. All organisations have employees of different status with different job descriptions that functions differently. Therefore policy coverage would be different. For example, sales personnel would be provided with mobile phone reimbursement as their job requires them to be on the move and to take calls regardless of where they might be. However, a receptionist would not be provided with mobile phone reimbursement as the job does not require one to travel so extensively. Therefore a land line phone is sufficient.

  • Responsibilities and Procedures

It must be clear to all employees what their responsibilities are and what are the procedures that they have to follow. For example, the notice period an employee has to give to Management before going on leave. These are procedures that enable the organization to run its business smoothly and at the same time help the employees plan their leave consumption. Having said that, such practice could also build trust and allow the employer to reciprocate based on trust if an employee has to apply for urgent leave. Such a relationship cultivates a cordial relationship between employer and employee which develops the psychological contract.

  • Related Documents

Forms and other documents that are to be used should be attached in appendixes with proper references, and paginated or coded for easy location.

  • Key Dates

Ensure that there is a column reference which identifies when the policy was implemented or amended and if possible, explain why.

  • Policy Codes for Easy Reference

Code each policy heading for easy reference. Ensure that it is comprehensive and easy for quick reference. There is no hard and fuss rule as to how it should be done. Most companies use numeric, such as clause 1 for the heading and 1.1 or 1.2 for the sub-heading or sub-clause.

  • Review Policy at Least Once a Year

Employment regulations are amended and new ones are implemented on a regular basis. In addition, job descriptions are always changing due to technological improvements, and how jobs are being done differently as technology influences everything we do, including corporate governance and how businesses are run. It is vital that policies are reviewed at least once a year to keep pace with such changes.

By Martin Gabriel, Senior HR Consultant, HRmatters21