CIPD - HR policies and procedures: why introduce them?

HR practice

Originally issued October 2004; latest revision July 2007

This factsheet gives introductory guidance. It:

gives the reasons why HR policies might be introduced
offers advice on introducing policies
considers the factors influencing what policies introduced
looks at who should develop these policies
includes the CIPD viewpoint.

HR policies are a written description of rights and responsibilities. They provide guidance for managers and others when deciding what to do in a particular circumstance. Strategies give directional choices; policies and procedures provide practical advice. For what to include in an HR policy and procedure, see our factsheet on HR policies and procedures: which to consider?

Go to our factsheet on HR policies and procedures:
which to consider?

Why introduce HR policies?

Organisations introduce HR policies for very different reasons. These can include:

the need to comply with existing or new legislation, including European directives and case law
a desire to develop a more formal and consistent approach to meet their needs as they grow and develop, for example, with regard to flexible working
to support their general management strategy
to follow the latest developments in effective people management, for example, wellness
dealing with internal change
complying with head office/parent-company rules, for example, regarding the use of mobile phones
to keep up with competitors, for example, policies may be reviewed in order to attract or retain employees, particularly in a tight labour market.

Each organisation will need policies that are adapted to suit their own purpose and to fit with their sector, culture and structure.

Introducing an HR policy doesn't indicate that the organisation previously had no provisions in place. It reflects a desire to formalise arrangements in certain areas of people management and development for the reasons suggested.

How should we introduce policies?

Assess/audit what is already in existence, both formally and informally.
Research and benchmark against other organisations' practice, particularly in the same sector or location.
Consult with staff representatives and unions.
Establish steering groups/working parties to develop.
Set realistic timescales.
Pilot draft policies.
Communicate policies to staff, for example, through briefings and/or workshops for staff and managers.
Give specific guidance to managers.
Introduce the policies as part of the induction process.
Have a continuous review process.

The culture of the organisation and the complexity of the policies will influence how a policy is introduced. For example, when it comes to communication, hard copies could be given to employees or put on notice boards, or 'soft' copies circulated by email or placed on an intranet. The communication process should be tailored to the organisation.

It is important for policies to be:

linked to business strategy, with a definite purpose for their creation
complementary - working together to reinforce the company image
flexible - able to adapt to changes in strategy and direction
open and transparent
suited in tone to the culture of the organisation
developed through the involvement of employees and interested stakeholders
communicated to all employees
easily understood, written in plain English and containing no jargon
accessible - in a format employees will use
practical and enforceable, with logical implementation
supported by managers, including support from senior managers.

What policies should we have?

The type of organisation will dictate what policies are in place. As companies grow and develop, they need to introduce policies to ensure a consistent and fair approach - and to avoid wasting time by having crises dealt with in an ad hoc way.

Research by the CIPD into performance at work has identified 11 policy or practice areas that are crucial to effective people management and development:

recruitment and selection
training and learning/development
career opportunities
communication
employee involvement
teamworking
performance appraisal
pay satisfaction
job security
job challenge/job autonomy
work-life balance.

Our research has shown that by adopting 'bundles' of HR practices employers are likely to improve business performance. Many employees have substantial discretion as to how to do their jobs. It is more likely that they will use their discretion positively if they feel that they are being fairly treated. The research found that adopting positive HR polices alone wasn't enough - the policies needed to be translated into practice to influence employees' behaviour. This translation and implementation by line managers is critical to the way in which employees respond to go 'the extra mile', for example, staying late to finish a project or going out of their way to deal with a customer problem.

There are some policies that organisations need to have in order to comply with legal requirements; others are to promote good practice. Many of our other factsheets cover what should be included in a particular policy, and for CIPD members, our law FAQs have fuller details on legal requirements.

There is more detailed advice on all aspects of policies and procedures in our CIPD Policies and Procedures for People Managers¹ and on employment law in CIPD Employment Law for People Managers².

Who develops HR policies and procedures?

There is a variety of ways an organisation develops policies and procedures, but it often takes place as organisations increase in size. Line managers responsible for developing and implementing policies should be committed and have the necessary expertise. The key to success is having the right people in place to bring the policies and procedures to life.

Size of organisation	Typical scenario
Small	HR policy and procedure development is often added on to the existing duties of an employee, especially those who have an interest in developing and an aptitude for skills in people management and development. A specialist may be employed on a one-off consultancy basis, for example, to develop specific policies and procedures. A specialist may be employed on a retained part-time basis to review existing policies and procedure arrangements.
Medium	An HR generalist may be tasked with introducing new policies and procedures, reviewing the existing ones and communicating them to employees and managers.
Large	HR specialists are often employed to deal specifically with eg reward, training and development, employment law or employee relations. HR generalists are also employed and there will be additional administrative support.

Size of organisation

Typical scenario

Small

HR policy and procedure development is often added on to the existing duties of an employee, especially those who have an interest in developing and an aptitude for skills in people management and development.

A specialist may be employed on a one-off consultancy basis, for example, to develop specific policies and procedures.

A specialist may be employed on a retained part-time basis to review existing policies and procedure arrangements.

Medium

An HR generalist may be tasked with introducing new policies and procedures, reviewing the existing ones and communicating them to employees and managers.

Large

HR specialists are often employed to deal specifically with eg reward, training and development, employment law or employee relations. HR generalists are also employed and there will be additional administrative support.

For further details on different HR roles, our comprehensive Professional Standards detail the competencies that people management and development professionals should have.

View our Professional Standards

CIPD viewpoint

HR policies and procedures can help organisations to develop fair and consistent approaches to managing and developing people and can protect against legal claims, for example, sex discrimination. They can provide all employees with guidance about their own and the organisation's responsibilities.

There is no magic formula to help organisations determine at what point in their development they need to employ a people management and development specialist, or to create a personnel department. Regardless of the number of employees in an organisation, it is how the organisation wishes to implement people management and development practices that will impact on who they employ and, if they decide to have one, how their personnel department is structured.

Policies need to be tailored to suit the culture, circumstances and size of an organisation. As the organisation grows, or the environment in which it operates changes, its need for HR policies and procedures will change. New policies will need to be developed and formalised, or existing policies reviewed.

References

JACKSON, T. (2004) CIPD policies and procedures for people managers. London: Chartered Institute of Personnel and Development. Further information is available at: http://www.cipd.co.uk/policiesandproceduresforpeople
managers
LEWIS, D. and SARGEANT, M. (2003) CIPD employment law for people managers. London: CIPD. Further information is available at: http://www.cipd.co.uk/EmploymentLawForPeople
Managers

HR policies and procedures: why introduce them?