People in a business meeting room having a discussion.

Which HR policies and procedures are right for my business?

The HR policies and procedures outlined by your business are responsible for creating a framework that employees must follow. This will not only ensure that consistent decisions are made, but also help the company avoid potential legal issues. For instance, HR guidance on email etiquette could reduce the chance of miscommunication. Due to the scope of areas that can be covered by HR policies, it’s important that employers take the time to consider which ones are appropriate for their workplace, industry, and culture.

Common HR procedures for small businesses

There are a range of HR policies and procedures that most small and medium sized businesses should put in place to ensure smooth operating. These include:

When new members join a team, it’s important they have all the resources they need to get started in their new role. It’s also necessary that current employees are familiar with the onboarding process, as it may fall to certain people to answer questions the new team member has. Oftentimes, businesses will expand their workforce to account for larger workloads, so it’s important onboarding can be completed quickly to increase productivity.

Every employer will collect data about their employees. This happens when they sign their employment contract and when any of their personal information changes, such as their home address. It’s important that employers keep an organised record of this data and communicate how this information will be stored, protected, and used by the business.

Even small companies can struggle to keep track of when employees have submitted a holiday request, when it has been approved, and their entitlement, all while facilitating regular output. If the holiday procedure at an organisation isn’t clear, it can cause stress for workers and managers alike. It’s also a legal requirement that UK employees are granted 28 days of paid leave per year.

Find our insights on ‘Managing employee holiday entitlement‘.

While not essential, it’s beneficial for employers to collect data that can be used to demonstrate an employee’s growth in their role. However, regular meetings can be difficult to schedule between medium to large workforces. Managers should aim to carry out performance reviews at a pace that is fair and productive to both the business and the work being done.

HR policies required under UK law

While it’s common legal advice for employers to put the above policies in place, there are only a handful of HR policies and procedures that are required by law. These concern:

Disciplinary procedures and rules (if not in contract/section 1 statement).
Grievance procedures (if not in contract/section 1 statement).
Health & safety (if 5 or more employees).
Whistleblowing (in some cases).

Other HR policies for which there are strong legal reasons, but which aren’t mandatory include:

Equal Opportunities
Data Protection
Anti-facilitation of tax evasion (in some cases)
Bribery
Whistleblowing

Why are HR policies important?

It’s typically once a company grows to a large size that additional HR policies are required, although this can also happen due to industry-specific regulations. This could include policies and procedures around:

Occupational safety
Redundancy
Drug use
Bullying and harassment, as well as online bullying and harassment
Benefits

The primary aim of HR procedures is to ensure that the actions taken by employees are aligned with the objectives and values of the business. As a result, employers should adapt and expand their range of HR policies as their business grows. A prime example in recent years has been employers offering working from home options and the introduction of laws around hybrid working practices.

Employment law support for businesses

Employment Law Services (ELS) Ltd offer bespoke legal services that are designed to support businesses no matter their structure. This means you will be supported in key areas like HR policy and procedure in a way that leads to sustainable business growth. Our experts will also make sure your business remains compliant with current UK employment law. Contact us to start a conversation about your business goals.