HR Policies definition

Mostly refers to codified documents that set out the company’s stance on issues, such as internet use or dress code, but can also mean a stance communicated verbally. Policies are crucial to effective functioning of the HR department as they help define the relationship between employer and employee. Employees must understand what the company’s position so there’s a benchmark for behaviour. Without this benchmark, businesses can’t discipline employees or set goals for improvements, and it becomes much harder to improve company processes and values.

HR should have policies for as many different eventualities as possible because if a situation arises that isn’t referenced then there’s no precedent or starting ground for how to deal with it.

Clarity is fundamental in codifying HR policies. Everything must be crystal clear – this is particularly important as company policies will be scrutinised in the case of an employment tribunal. Whether a company has a consistent policy in place is often important in determining where liability lies.