{"id":61696,"date":"2021-12-02T20:30:24","date_gmt":"2021-12-02T18:30:24","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=61696"},"modified":"2025-05-17T04:49:55","modified_gmt":"2025-05-17T02:49:55","slug":"company-policies-and-procedures","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/company-policies-and-procedures\/","title":{"rendered":"Company Policies and Procedures: Essential Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Company policies and procedures help your workplace run more efficiently. They ensure consistency, fairness, and compliance with <\/span><span style=\"font-weight: 400;\">US labor laws<\/span><span style=\"font-weight: 400;\">. Policies also help your employees know what is acceptable, and what is not tolerated. Plus, they <strong>reflect your company\u2019s values, making it a better environment for all employees.\u00a0<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, for your policies to be effective, they need to be <strong>comprehensive, inclusive, and well communicated.<\/strong> When you don\u2019t implement them in the right way and take into account all aspects of the employee experience, you put your organization at risk.\u00a0<\/span><\/p>\n<ol>\n<li><a href=\"#What-are-Company-Policies-and-Procedures\">What are Company Policies and Procedures?<\/a><\/li>\n<li><a href=\"#What-is-the-Purpose-of-Company-Policies-and-Procedures\">What is the Purpose of Company Policies and Procedures?<\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li><a href=\"#How-to-Create-Company-Policies-and-Procedures\">How to Create Company Policies and Procedures<\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li><a href=\"#Which-Company-Policies-and-Procedures-to-Include\">Which Company Policies and Procedures to Include<\/a><\/li>\n<li><a href=\"#An-Employee-Handbook-Template-for-Small-Businesses\">An Employee Handbook Template for Small Businesses<\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li><a href=\"#Centralize-Company-Policies-and-Procedures\">Centralize Company Policies and Procedures<\/a><\/li>\n<li><a href=\"https:\/\/factorialhr.com\/employee-portal\">Create an Employee Portal with Factorial \u2705<\/a><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">In this post, we will discuss<strong> what policies are and why they are so important.<\/strong> We will also share suggestions on which ones you should include in your employee handbook. Finally, we will take a look at some of the tools you can use to ensure you effectively implement and communicate your policies at every level of your company.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/request-demo\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone wp-image-128733\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05134521\/employee-portal-demo-300x103.png\" alt=\"employee portal software\" width=\"800\" height=\"275\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05134521\/employee-portal-demo-300x103.png 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05134521\/employee-portal-demo-768x264.png 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05134521\/employee-portal-demo.png 800w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><br \/>\n<a name=\"What-are-Company-Policies-and-Procedures\"><\/a><\/p>\n<h2><b>What are Company Policies and Procedures?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Company policies and procedures are a set of internal guidelines that establish the rules and expectations of your company. <strong>They help you communicate to employees what they can and can\u2019t do, and how they should do it.<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s start with the basics:<\/span><\/p>\n<p><b>Policies<\/b><span style=\"font-weight: 400;\">: a framework of rules and regulations in your company. They establish guidelines for how potential issues are managed and they align an organization\u2019s vision and values with its day-to-day operations. Examples of company policies include employee conduct policies, dress code, attendance policies, equal opportunity policies, and other areas related to the terms and conditions of employment.<\/span><\/p>\n<p><b>Procedures<\/b><span style=\"font-weight: 400;\">: the processes by which employees should deal with potential breaches of company policies. For example, if they witness discrimination, how they should report it.\u00a0<\/span><\/p>\n<p><strong>Each policy you create should:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">set out the aim of the policy<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">explain why the policy was developed<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">list who the policy applies to<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">set out what is acceptable or unacceptable behavior<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">set out the consequences of not complying with the policy<\/span><\/li>\n<\/ul>\n<p><span data-sheets-root=\"1\"><a href=\"https:\/\/factorialhr.com\/\">Business Management Software<\/a> made simple, powerful, and scalable.\ud83d\udc47<\/span><br \/>\n<a href=\"https:\/\/factorialhr.com\/\"><img decoding=\"async\" class=\"alignnone wp-image-158812 size-full\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/02\/15165042\/Banner-Demo-Factorial-All-in-One-English.png\" alt=\"Business Management Software\" width=\"1212\" height=\"500\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/02\/15165042\/Banner-Demo-Factorial-All-in-One-English.png 1212w, https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/02\/15165042\/Banner-Demo-Factorial-All-in-One-English-300x124.png 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/02\/15165042\/Banner-Demo-Factorial-All-in-One-English-1024x422.png 1024w, https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/02\/15165042\/Banner-Demo-Factorial-All-in-One-English-768x317.png 768w\" sizes=\"(max-width: 1212px) 100vw, 1212px\" \/><\/a><\/p>\n<p><a name=\"What-is-the-Purpose-of-Company-Policies-and-Procedures\"><\/a><\/p>\n<h2><b>What is the Purpose of Company Policies and Procedures?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Think of your company policies and procedures as <strong>the rules of conduct of the organization<\/strong> which outline <strong>the responsibilities of both employees and employers.<\/strong> They aim to both protect the legal rights of employees and the business interests of employers. They also communicate the values and vision of your organization, ensuring your employees understand exactly what is expected of them in certain situations.<\/span><\/p>\n<p><strong>This usually includes:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">General company rules on the most appropriate way to behave (dress codes, social media policies, smartphone use, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Guidance for handling common scenarios (codes of conduct, attendance and leave, remote work, travel and expenses, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Legal issues (harassment and discrimination, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Provisions for compliance with state and federal laws (Family and Medical Leave Act, Disabilities Act, the Equal Employment Opportunity Commission, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Internal work standards and regulations (health and safety rules, breaks, smoking rules, etc.)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Guidelines for the fair treatment of employees (benefits and compensation policy, paid time off, bereavement, etc.)<\/span><\/li>\n<\/ul>\n<h2><b>How to Create Company Policies and Procedures<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><b>Establish your goals<\/b><span style=\"font-weight: 400;\"> for each policy and explain these goals to your employees. Design an <\/span><a href=\"https:\/\/factorialhr.com\/blog\/hr-strategic-plan\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">HR strategy<\/span><\/a><span style=\"font-weight: 400;\"> to clarify your direction with each policy and create an <\/span><a href=\"https:\/\/factorialhr.com\/blog\/annual-hr-plan\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">annual HR plan<\/span><\/a><span style=\"font-weight: 400;\"> to guide your HR department in line with your mission and values.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Write and review<\/b><span style=\"font-weight: 400;\"> your policies. Make sure your policies cover the basics and address any questions that employees might have. Get your legal department to make sure everything is in line. Establish a pilot group of employees to review your policies and give feedback. Make adjustments where necessary.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Get management support<\/b><span style=\"font-weight: 400;\">. This is a crucial step as if your managers aren\u2019t on board then it will be much harder to implement and communicate your policies to employees.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Implement your policies<\/b><span style=\"font-weight: 400;\"> and distribute them to employees. Depending on the size of your company and your <\/span><a href=\"https:\/\/factorialhr.com\/blog\/importance-hr-management-hr-employee-ratio\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">HR to employee ratio<\/span><\/a><span style=\"font-weight: 400;\">, you can do this individually, in small groups, or at a company-wide meeting. Give digital or paper copies of all policies to all employees and get them to sign a document confirming they have received and understood them.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Include policies in your employee handbook<\/b><span style=\"font-weight: 400;\"> and make sure all new starters are given a copy during their onboarding phase. If you have a company intranet, include copies there also so that all employees have access at all times.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Review and update<\/b><span style=\"font-weight: 400;\"> your policies on a regular basis to make sure they are in line with any changes to federal, state, and company regulations. You should also update them whenever there are any organizational shifts, as part of your <\/span><a href=\"https:\/\/factorialhr.com\/blog\/change-management\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">change management plan<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><b>Which Company Policies and Procedures to Include<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The company policies and procedures you include in your employee handbook will depend on a number of factors, including <strong>the size of your company and the nature of your business.<\/strong> You also need to ensure compliance with state and federal labor laws, including the <\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/fmla\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Family and Medical Leave Act (FMLA)<\/span><\/a><span style=\"font-weight: 400;\">, the <\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/flsa\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Fair Labor Standards Act (FLSA)<\/span><\/a><span style=\"font-weight: 400;\">, and the <\/span><a href=\"https:\/\/www.osha.gov\/laws-regs\/oshact\/completeoshact\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Occupational Safety and Health Act (OSHA)<\/span><\/a><span style=\"font-weight: 400;\">, amongst others.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can find out more about company policies and procedures you should create in our handy <a href=\"https:\/\/factorialhr.com\/templates\/employee-handbook-template\" target=\"_blank\" rel=\"noopener\">downloadable employee handbook template.<\/a> Here are a few examples to give you an idea.<\/span><\/p>\n<h3><b>Employee Conduct Policy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">An employee conduct policy <strong>defines your expectations about how your employees should behave.<\/strong> It usually outlines aspects including proper dress code, use of social media and smartphones, acceptable behavior in the workplace, and social norms. Your employee code of conduct policy should reflect your vision, core values, and the overall culture of your organization.\u00a0<\/span><\/p>\n<h3><b>Time Off and Attendance Policy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A time off and attendance policy <strong>outlines your rules and guidelines relating to work schedules and absences.<\/strong> It should define how your employees should schedule paid or unpaid time off or notify their managers of absences or late arrivals. It should also establish the consequences of failing to adhere to absence procedures.\u00a0\u00a0<\/span><\/p>\n<h3><b>Workplace Health, Safety &amp; Security Policy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A health and safety policy is essential. It <strong>defines rules and guidelines so that your employees work in a safe environment<\/strong> that doesn\u2019t compromise their health. It also protects you as an employer from potential accidents and safety incidents that could land you in court. For example, your policy should clearly define the procedure for completing an <\/span><a href=\"https:\/\/factorialhr.com\/blog\/hr-incident-report-template\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">incident report<\/span><\/a><span style=\"font-weight: 400;\"> so that any potential incidents are well documented.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Aside from protecting you and your employees, a security policy <strong>helps you protect your physical and intellectual property as well.<\/strong> For example, you could include guidelines for the use of ID cards to enter your building and best practices for signing out company laptops or smartphones.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/request-demo\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone wp-image-128733\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05134521\/employee-portal-demo-300x103.png\" alt=\"employee portal software\" width=\"800\" height=\"275\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05134521\/employee-portal-demo-300x103.png 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05134521\/employee-portal-demo-768x264.png 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05134521\/employee-portal-demo.png 800w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<h3><b>Equal Opportunities Policy<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, an equal opportunities policy can help you promote fair treatment in the workplace. This includes the use of<strong> anti-discrimination and affirmative action policies<\/strong> that discourage inappropriate behavior at all levels of your company. You could also outline any diversity initiatives or <\/span><a href=\"https:\/\/factorialhr.com\/blog\/workplace-harassment-training\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">workplace harassment training<\/span><\/a><span style=\"font-weight: 400;\"> your company offers to send a clear message that keeping your employees safe and treating them fairly is a top priority for you.\u00a0<\/span><br \/>\n<a name=\"An-Employee-Handbook-Template-for-Small-Businesses\"><\/a><\/p>\n<h2><b>An Employee Handbook Template for Small Businesses<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The best way to distribute your company policies and procedures is with an <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-handbook\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">employee handbook<\/span><\/a><span style=\"font-weight: 400;\">. It provides you with <strong>a centralized resource that communicates all your policies in an easily accessible written format.<\/strong> This helps your new and existing employees understand what is expected of them at all times. It also protects you from potential claims of discrimination or unfair treatment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The way you design your large or small business employee handbook will have a huge impact on how effective it is. You need to provide as much information as possible so that your policies are clear. But you also need to make sure your handbook isn\u2019t too overwhelming otherwise your employees won\u2019t read it. It\u2019s all about <strong>finding the right balance between communicative and overloaded.<\/strong><\/span><span style=\"font-weight: 400;\"><strong><a href=\"https:\/\/factorialhr.com\/templates\/employee-handbook-template\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" id=\"hs-cta-img-de1e5db9-f2bb-4614-86e5-824a7079a9ba\" class=\"hs-cta-img aligncenter\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/de1e5db9-f2bb-4614-86e5-824a7079a9ba.png\" alt=\"New call-to-action\" width=\"900\" height=\"308\" \/><\/a><\/strong><\/span><br \/>\n<a name=\"Centralize-Company-Policies-and-Procedures\"><\/a><\/p>\n<h2>Centralize Company Policies and Procedures<\/h2>\n<p><span style=\"font-weight: 400;\">The best way to ensure this is by using the right technology, such as <\/span><a href=\"https:\/\/factorialhr.com\/hr-software\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Factorial\u2019s all-in-one software solution<\/span><\/a><span style=\"font-weight: 400;\">. Just upload your policy template to the employee portal to <strong>create all your policies in one place.<\/strong> If you don\u2019t already have a template, Factorial\u2019s <a href=\"https:\/\/factorialhr.com\/templates\/employee-handbook-template\" target=\"_blank\" rel=\"noopener\">free employee handbook template<\/a> is a great resource that helps you design all your policies, safe in the knowledge that you are including all the right information. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can then create, distribute, and update your policies as often as you need. Plus, with our template<strong>, you can customize your layout, check legal compliance, and set reminders for updates.<\/strong> And the best part is that the employee portal makes it easy for your employees to access up-to-date policies whenever they need to.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/request-demo\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone wp-image-128745\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05135908\/all-in-one-hr-software-300x103.png\" alt=\"employee portal software\" width=\"800\" height=\"274\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05135908\/all-in-one-hr-software-300x103.png 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05135908\/all-in-one-hr-software-768x263.png 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2021\/12\/05135908\/all-in-one-hr-software.png 900w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company policies and procedures help your workplace run more efficiently. They ensure consistency, fairness, and compliance with US labor laws. Policies also help your employees know what is acceptable, and what is not tolerated. Plus, they reflect your company\u2019s values, making it a better environment for all employees.\u00a0 However, for your policies to be effective,<a href=\"https:\/\/factorialhr.com\/blog\/company-policies-and-procedures\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":61809,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-61696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-resources"],"acf":{"topics":"talent-onboarding"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Company Policies and Procedures: Essential Guide | Factorial<\/title>\n<meta name=\"description\" content=\"Company policies and procedures: what to include and why they are important. 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