No matter what your organization’s mission or what industry you are in, policies and procedures are vital to effective operations.
Policies and procedures provide documented guidance to your company and minimize the potential for liability. They also produce organizational consistency for employees and customers, supporting a healthy reputation – especially regarding employee and customer interactions.
While some companies view HR policies simply as a means to fulfilling compliance requirements, the most successful organizations recognize them as essential operational parameters. There are no boundaries without appropriate and well-defined policies and procedures, leaving employees to establish their own rules.
Policies vs. Procedures – What’s the Difference?
Policies and procedures work in tandem but are not the same tool.
Policies are the broad principles of the company. They provide direction, oversight, and decision-making guidance. Policies steer daily actions while allowing for flexibility and setting goals and objectives. A policy can be motivated by business philosophy, competitive and market conditions, or regulatory issues.
Business policies may fall under categories such as codes of conduct, employee onboarding and termination, social media usage, paid and sick days, workplace discrimination, and required licensing. Policies may also outline how teams work together.
Procedures take a more focused approach. They outline the necessary steps and actions depending on the specific scenario. Procedures have a defined start and finish and must be meticulously followed to achieve the desired result. A procedure’s repetitive nature and uniformity are crucial for onboarding and training new hires, staying compliant, and improving processes. Established procedures are also necessary for successful auditing practices.
Procedural categories may include emergency plans, material procurement, equipment operation, inventory supply strategies, selling expectations, and even customer service.
Policies and procedures work together to provide employees with a comprehensive view of the workplace, sharing information on organizational culture and expected behavior. A well-developed set of workplace policies can play a vital role in safeguarding the employer’s interests while establishing a positive culture at the company.
Why Are Policies and Procedures Important to Your Business?
A well-cultivated set of policies and procedures guarantees that your organizational standards, values, benefits, and culture are defined clearly. Policies and procedures address common human resource questions or concerns and limit the potential risk of unwarranted employment practices claims.
Policies and procedures also provide a wide range of benefits to an organization, which may include:
1. Increased compliance: Every industry operates under regulations, laws, standards, and best practices that organizations must comply with. Policies & procedures also allow compliance with international, federal, state, and local regulations. Ensuring ongoing compliance necessitates constantly reviewing compliance issues and updating policies & procedures based on new or evolving laws and best practices. Within the workplace, policies & procedures provide clear direction to employees regarding all aspects of their job while protecting the company against legal liability.
2. Refine internal processes: As organizations grow and evolve worldwide, internal processes can be difficult to follow. However, they are necessary for guaranteeing consistency throughout the company – thus protecting the business reputation. Policies & procedures ensure that internal processes are carried out and achieved.
3. Navigate crises and unexpected events: Policies and procedures can work together to avoid workplace incidents, ensuring appropriate safety measures are in place in the event of an incident. They prevent organizations from downplaying internal events that may evolve into a crisis. Examples of potential situations include malware attacks, faulty products, lawsuits, and disasters. Easily accessible documents which outline approved customer service response and social media and communication plans can help mitigate damage in a crisis.
4. Inform and educate employees: Policies and procedures provide necessary information to employees, essential for reinforcing the expected professional standards of every employee throughout the company. They also allow employers to manage their people more effectively, providing explicit definitions of acceptable behavior in the workplace. While policy manuals were traditionally hard-copy, implementing a dynamic online knowledge portal allows leadership to deliver relevant information with a few keystrokes – without having to track down a manager.
5. Enable consistency: Policies & procedures keep operations from descending into chaos. When employees have clearly outlined guidelines to follow, organizations can run more effectively day-to-day, and resources are optimized most efficiently. Management is not constantly putting out fires – and can therefore focus on achieving strategic goals and working toward development and growth. Employees with clear directives can better perform their jobs and gain confidence that drives productivity and innovation.
The Right Knowledge Tools Are Key
The KLONE Organizer provides a powerful tool to aggregate and distribute policies and procedures to your workforce. The platform also allows for easy updates and notifications company-wide, alerting employees to any changes and required next steps. To make accessing these documents easier and more efficient, employees can look them up by titles or terms, such as “registration procedure,” or simply ask questions, e.g., “what is our safety policy?”
Call today to learn more about how KLONE can save management time and resources, maximizing efficiency for your team.