Definition of Human Resource Policies

Policies are guidelines, and HR policies are the formal rules and guidelines that businesses put in place to hire, train, assess, and reward the members of their workforce. These policies, when organized and disseminated in an easily used form, can serve to preempt many misunderstandings between employees and employers about their rights and obligations in the business place. It is tempting, as a new small business owner, to focus on the concerns of the business at hand, and put off the task of writing up a human resource policy. All business analysts and employment lawyers will advise a new business owner to get a policy down on paper, even if it is a simple one drafted from a boilerplate model. Having policies written is important so that it is clear to all what the policies are and that they are applied consistently and fairly across the organization. Moreover, when issues concerning employee rights and company policies come before federal and state courts, it is standard practice to assume that the company's human resource policies, whether written or verbal, are a part of an employment contract between the employee and the company. Without clearly written policies, the company is at a disadvantage.

It is important to establish a standardized way of doing things in a workplace. HR, or human resource, policies make it possible for employers to set ground rules for employee behaviors, ethics and professionalism so that there is consistency in the workplace.

Behavioral Policies

1. According to the University of Western Australia, HR behavioral policies establish what types of behaviors are appropriate, and what types are unacceptable. Behavioral policies are sometimes referred to as a code of conduct.

Ethical Policies

2. Ethical policies are not only good for keeping employees in line, they also benefit the company because outside parties may be interested in what the company's ethical stances are. Stakeholders and investors, for instance, may want to look at HR's ethical policies to see what policies are in place for confidentiality, disclosures, personal affairs, conflicts of interest and political activities, says the International Money Fund.

Professionalism Policies

3. HR policies touch on standards for professionalism. For example, dress codes are policies that establish the expectation for professional attire in the workplace. Other types of professional HR policies include policies about employee relationship and performing work in a way that gives the company a positive public image.

Small business owners should make sure that they address the following basic human resource issues when putting together their personnel policies:

• Equal Employment Opportunity policies
• Employee classifications
• Workdays, paydays, and pay advances
• Overtime compensation
• Meal periods and break periods
• Payroll deductions
• Vacation policies
• Holidays
• Sick days and personal leave.
• Performance evaluations and salary increases
• Termination policies