HR policies

HR policies provide written guidance on how a wide range of issues are handled within an organisation. They include a description of principles, rights and responsibilities for managers and employees. They play a key role in supporting fairness and consistency across an organisation, as well as potentially helping to protect the organisation against legal claims. However, it’s the communication and implementation of policies that’s crucial in ensuring their effectiveness.

Links between HR policies, procedures and strategy

HR policies support the wider strategy by adopting a tailored approach that reflects the size and unique culture of the organisation.

• An HR strategy sets out how HR can support organisational objectives, focusing on longer-term people issues and macro-concerns about structure, values, commitment and matching resources to future need. Read our Strategic human resource management factsheet.

• HR policies provide general and practical advice and guidance for managers and staff on a range of employment issues.

• HR procedures give a step-by-step account of specific arrangements that apply in particular circumstances (for example, setting time limits within which meetings must take place).

HR policies flow from HR strategies and complement HR procedures.

Why introduce HR policies?

HR policies can support trust, fairness and inclusion by outlining the responsibilities of both employer and employee. They can impact employee motivation, organisation reputation and the ability to attract and retain talent, creating mutual benefits for employees and organisations.

HR policies can also provide clear guidance that reflects regulations, for a range of issues. This can help avoid involvement with employment tribunal claims.

Certain HR policies and procedures may be necessary to comply with the law. For example, in the UK a written health and safety policy is required for any organisation with five or more employees, while there are also important legislative provisions surrounding the setting out of formal disciplinary and grievance procedures.

Even where a policy or procedure isn't specifically required by law, employers often find it helpful to have a policy in place to provide clear guidance that reflects the legal framework for handling the issue in question and it also helps employees to be clear about the organisation’s stance on a particular subject.

Organisations introduce or review specific HR policies for reasons including:

• To reflect and comply with existing or new legislation and case law.
• To support business strategy.
• To follow the latest developments in effective people management.
• To deal with internal change.
• To comply with head office/parent-company guidance to keep up with competitors – for example, reward policies may be reviewed in order to attract or retain employees when operating in a different international market.
• For smaller organisations, a desire to develop a more formal and consistent approach that will meet their needs as they grow.

Organisations often develop formal HR policies as they increase in size.

Typical practice across organisations of differing sizes includes:

• Small organisations - HR policy development may be added to the existing duties of an employee or a specialist may be employed on a one-off consultancy or part-time basis to develop or review specific policies.
• Medium organisations - An HR generalist may be tasked with introducing new policies, reviewing the existing ones and communicating them to employees and managers.
• Large organisations - HR and other people professionals often deal with key issues such as reward, employee development, employment law or employee relations, supported by HR generalists and administrative support staff.

Our Profession Map has fuller details on different roles in the people profession.

HR policies need to reflect the unique needs and characteristics of the organisation and its workforce.

Consider the type of policies that may be relevant during the course of the employment life cycle: 

Beginning employment

An organisation might have a policy setting out its criteria for selection, together with policies for new joiners on topics such as inductions and referral payments.

During employment

Reward

Policies might address areas such as how jobs are graded and how performance is rewarded; together with provisions for aspects of compensation packages, such as pensions/additional voluntary contributions and other benefits and allowances.

Health, safety and wellbeing

Policies might cover a disparate range of topics from prevention and management of work-related stress to handling hazardous materials.

Employee relations and general HR issues

As well as disciplinary and grievance policies, examples include: time off and leave for trade union activities, holidays, secondment, volunteering, parental or caring duties (such as maternity or paternity leave), communication, involvement and other employee behaviours, including employee voice and harassment and bullying.

Learning and development

Issues that might be covered by policies in this area would include courses and secondment opportunities, talent development, payment of professional fees and so on.

Managing equality, diversity and inclusion

Equality, diversity and inclusion must run through all aspects of an organisation's policies. In the UK, discrimination on many personal characteristics, such as gender or race, is unlawful at all stages of the employment life cycle, while managing inclusion and valuing diversity is central to good people management and makes good business sense. Good practice suggests that an overarching equality and diversity policy should expressly inform the organisation's vision and values. The issue might then also be incorporated into many other policies (for example, recruitment and selection and reward).

Other issues

Other policies that organisations may want to consider include diverse areas related to the wider business needs (for example corporate responsibility or anti-bribery measures) or those associated with technology and new ways of working (the use of social networking sites, for instance).

Ending employment

There are many reasons why employment ceases, from voluntary resignation to dismissal, redundancy or retirement – some or all of which might be covered by formal written policies (for example, including information on notice periods or the nature of redundancy consultation).

Beyond the organisation

HR policies may need to extend to partnering arrangements such as joint ventures, outsourcing, strategic alliances or public-private sector commissioning models. It's advisable to consider where common policies may need to be applied or reviewed in light of new organisational arrangements.

CIPD resources

For CIPD members, our employment law Q&As have fuller details on legal requirements - explore the Knowledge hub to find these by topic.

In-depth guidance on HR policy development, together with a wide range of model policies, procedures, letters and forms, is available from our subscription service HR-inform.

External resources

Some organisations (particularly in the public sector) make their policy manuals available online. These are often a good starting point, but it's vital to assess the reliability of the source (date of production, size of organisation, culture and so on).

Many commercial organisations offer ready-made policy solutions, usually for a fee, which can be tailored to suit individual employers. But, again, assessing the reliability and suitability of the source is essential.

It's particularly important to check any relevant codes of practice and ensure compliance with legal requirements.

These guidelines will help when introducing and reviewing HR policies:

• Assess/audit current practices and what already exists, whether formal or informal.

• Research and benchmark against other organisations' practice, particularly in the same sector or location.

• Consult with staff representatives and/or unions.

• Establish steering groups/working parties to develop the policy.

• Set realistic timescales.

• Pilot draft policies.

• Give specific guidance to managers.

• Include the policies as part of the induction process.

• Have a continuous review process.

• Ensure policies are complementary, flexible, practical and enforceable.

Writing and formatting HR policies

All policies need to be written in plain language. When technical terms are unavoidable, it’s useful to include a short glossary. It’s also helpful to include the date of publication or review, as well as who to approach with queries. 

It’s important not to assume that the policies in place are always right. Some policies, for example mileage allowances, might be revised annually. Others might be reviewed in the event of legislative developments or on an ad hoc basis. For example, adjusting working practices during the COVID-19 pandemic, and resetting post pandemic, meant creating new policies and then adapting these for many organisations.

Communicating HR policies

Turning HR policy into practice requires working across the business to ensure that leaders, line managers and employees fully understand the policies and expectations (including any updates). The format for communications will depend on the organisational culture and nature of the policies. See more on employee communication.

Since line managers are pivotal in bringing HR policies to life, training, engagement and support are crucial to ensure that managers have a clear understanding of the policies, and have the capability to implement policies sensitively and fairly. Read our factsheet on Line mangers’ role in supporting people professionals.

Induction plays a key role in making sure new employees are aware of all the policies and procedures within an organisation.

Journal articles

CIPD members can use our online journals to find articles from over 300 journal titles relevant to HR.

Members and People Management subscribers can see articles on the People Management website.