If asked when did your company last conduct an internal audit of your policies and procedures to evaluate effectiveness, what would be your answer?
Well, if you are like most organisations, your answers are likely to be ‘not sure’, ‘we’ve done some I think’ or ‘never’. If these are the types of answers that spring to mind, like many other companies, you are putting your business and employees at risk. Moreover, if the need to alter organisational policies is left ignored, issues cropping up from old, ineffective or undocumented policies and procedures can make your organisation vulnerable to a range of legislative, employment and reputational risks.
To start with, we are sharing a few issues your organisation may encounter due to lack of undocumented, outdated or poorly structured policies and procedures.
- Lack of proper documentation opens the door for employees to interpret things differently to what the employer intends. Employees who have been a part of the company for years get used to doing things in a way they have always been done – which might not be consistent with contemporary HR practices.
- New employees can’t access current policies and procedures. A major confusion arises when new people are recruited but can’t access up to date policies and procedures – so they make assumptions which results in inconsistent outcomes and avoidable performance concerns.
These couple of examples of issues that arise from either non-existent or out of date policies and procedures can have significant consequences for employers. But here are some things that can be done to address or prevent them from happening into the future.
Understand the difference between ‘policy’ and ‘procedures’
When undertaking reviews of existing policies and procedures, we often see that policy and procedures are mixed into the one document. This makes it hard for employees to understand what the ‘intent’ of the document is – policy – as opposed to ‘what to do’ – the procedural guidance.
Unpacking the two complementary but quite different components is vitally important if consistently good outcomes are to be realised.
Improve Employee Communication
Proper communication of well-designed and documented policies and procedures allows an organisation to improve employee productivity by eliminating any sort of confusion amongst employees.
When employees are well aware of their rights and company processes, they tend to practice their operations while complying with the labour law. This helps the company to avoid legal risks and ensure a smooth business function.
Keep Employees Updated, Informed and in the Loop
A copy of the company’s updated policies needs to be accessible to all employees in the company. While there is a tendency for this to take the form of a company manual or handbook, we suggest that it is much better to have it in ‘soft copy’ form – to ensure it can be readily updated and accessed by managers and employees. It is also important to regularly remind employees of key policies and procedures, for example performance management policies and procedures in the lead up to annual reviews, code of conduct around Christmas time (and work parties!) to ensure that they think about and work within the expectations of the business.
Assign Responsibility and Implement Accountability
The responsibility of compiling and maintaining HR policies and procedures should only be given to experienced HR practitioners who are well-versed with the current employment legislation and directions.
Companies that don’t have enough internal resources to fulfil this level of responsibility, or don’t have the time to do this type of work, should consult with best human resource consultants in Sydney to maintain a highly effective rule book for the company.
Why Precision and Details Matter When It Comes to Organisational Policies & Procedures?
Though it might be tempting to see a generic set of policies and procedures are a solution to ‘gap’ in the employment framework, there’s still the need to ensure that it is both ‘compliant’ and ‘fit for purpose’.
HBA Consulting Blog 