The essential and recommended policies to have in place
As small businesses grow, it can be difficult to know where to focus your efforts.
HR is one of those functions that can be left behind.
Over half of businesses handle HR concerns themselves.
And under half have a formal HR policy manual.
As such, HR is often left up to employees without sufficient training and knowledge.
This post will look at the HR policies your business must have by law, as well as those it is highly recommended to put in place.
That way, you can ensure that whoever is handling HR in your small business, you are doing things by the book.
The three essential HR policies according to UK law
UK law dictates that companies have certain documents in place in order to operate fairly and safely.
These typically apply to all businesses with 5 or more employees. If your business is small than this, you should still consider that these policies may become a legal requirement as you grow. Of course, Findmyshift’s free plan for small teams can help you to do just that!
Disciplinary
It is essential to have clear policies in place to cover behavioural issues, with processes that are likely to include written warnings, meetings, and potentially a decision on an employee’s continued employment if needed.
The Acas Code of Practice is a key reference point here and adhering to this will keep your business on the right side of the law.
Dismissals are an unfortunate necessity at times, and it’s important that you have a procedure that will ensure it is managed fairly.
Grievance
There must also be a way for employees to raise any complaints or concerns that come up during the course of their employment. The Acas Code of Practice is once again an invaluable source here to help you define your business’s process.
Such a policy must have at least two distinct parts, one covering how employees are able to submit their grievances, and the other outlining the way they will be handled once submitted.
Health and Safety
Ah, health and safety. Few business functions are as maligned and ridiculed. But of course, the consequences for falling foul of policies here, or even worse, having a serious incident that could’ve been avoided, are severe.
Any health and safety policy must include a clear commitment to workplace safety, an outlining of where the responsibilities lie within your business, and the specific measures you have in place to minimise risks and mitigate the fallout when accidents do happen.
Three highly recommended HR policies
As well as the three policies above, all of which are legal requirements for most UK businesses, there are other HR policies which you are likely to want in place as well.
Finding the resources to complete these may feel challenging, but they will typically pay back any time investment if they help you to avoid more complex legal situations.
As such, we recommend trying to find the capacity to create these policies for your business as well.
Absence management
We’ve previously looked at how a well-defined absence plan can actually be beneficial to businesses. Encouraging employees to have time off when they need to can see them return to work more motivated and energised than before.
Of course, there are also less desirable types of absences, with no shows a particular source of frustration for small business owners and managers. Such short-notice changes can wreak havoc on even the best planned staff rotas.
Put a policy in place and you at least have a solid footing from which to address any issues.
Data protection
The enforcement of the General Data Protection Regulation (GDPR) means more than just having a new popup on your company website. The way your business collects, stores, and uses data must fall in line with new regulations, with offenders risking hefty fines.
Make sure your policy is clear, particularly on the responsibilities of your employees and how they can work to keep you on the right side of the law.
Parental leave
Similarly to an absence management plan, ensuring your company has a clear leave policy for new or expecting parents will boost employee satisfaction and increase long term retention.
There is some flexibility in what your organisation’s policy looks like, but it does at least need to address the duration, requirements, and pay during any period of parental leave.
With the above policies in place, your business will be better placed to stay compliant and content.