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Secrets to Know about Writing a Company Policy

Becoming an entrepreneur is easy, as long as you have the resources to start a company and business. However, running the company is another story. There are a myriad of things that you need to do if you want your daily business operation to run smoothly and efficiently. Moreover, a smart business person should not only focus on the day-to-day operation, but he should also need to limit the liability or problems that may potentially occur in your company. A great way to prevent such from happening is by writing a policy of your company.

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About Company Policy and Its Importance

Company policy is a set of principles, rules, and guidelines that are specially formulated to be followed by the organization in accomplishing its long-term goals and are documented and published in a booklet or manual. Hence, the employee handbook helps to establish and outline the duties and responsibilities of the members, employees and employers alike, in the company.

As an entrepreneur, you know very well that your business faces a lot of risks every day. Even dealing with clients and hiring a new pool of employees poses a great risk to your company. That is why there are a number of valid reasons why it is important to write a company policy in place. In this section, we have provided a short yet comprehensive rundown of a list of importance of writing a good company policy:

  • It creates a level uniformity in terms of the rights and responsibilities of the employees.

Despite the different types of company policies, a clear policy is a powerful tool that helps in creating uniformity in employee’s rights and responsibilities. It prevents personal and varying standards in your employees. Once a company policy is in place, employees will have a clearer direction on the things they should follow in the company. Let us take for example, the dress code. If the company policy has stipulated that the employees should wear the proper office attire, then male employees should come to the office wearing a suit and a tie instead of jeans and t-shirt. Additionally, a policy can prevent any potential internal conflict that would lead to misunderstanding and misinterpretation of proper conduct.

  • It helps address legality and ethical safety.

One of the most important items that you need to include in your company policy is safety. When talking about safety policy, it does not necessarily mean safety in the organization but it also addresses the personal safety of all people working in the company. Additionally,  a policy that highlights the expectations for legal and ethical behavior can effectively discourage employees from engaging in activities that can get them and your organization into trouble. On the other hand, when we speak of personal safety, it is often designed to address the potential dangers brought about by using machinery. One of the most common examples is the safety in construction. Hence, writing a strong and effective safety policy helps in the prevention of potential injuries, as well as reduces the risk of the company for lawsuits.

  • It aids in making informed decisions.

Since the policy acts as a guideline for your company, it helps you make more informed decisions that impact the success and growth of the whole organization, as well as your business. Normally, the policies written for the company simply instruct all the member of the organization to act in line with the things that would be beneficial for the company and business.

Common Mistakes to Avoid When Writing a Company Policy

Writing a company policy is never a simple task. In fact, the whole process is rather complicated, and almost all people who are assigned to write the policy face a bunch of challenges and obstacles, while drawing up and designing its content. That is why it is important for the policy writer to find sensible solutions to work their way around the obstacles. In this section, we have provided a list of the common mistakes that you need to be aware of and avoid:

  • Unclear and Confusing Guidelines

One of the most critical things to remember when writing a company policy is how well the employees understand the context of the company’s regulation. What policy writers need to keep in mind that every item included in the policy should be clearly defined and detailed.

  • Letting Politics Affect the Policy Context

When writing a company policy, make sure that its goals should be to create a synoptic yet comprehensive structure for your business that should guide the employees. Before you start writing a draft of the policy, make sure to stay neutral and not get any personal ties get in the way. Make certain to free yourself from any politics and draw up a policy context that would benefit not only the company, but also the people working in the organization.

  • Too many meaningless claptraps and corporate nonsense

Writers should avoid too much fluff when writing a policy. Since a company policy is a great tool that helps set the boundaries and guidelines for best practices, it should be designed to be not only realistic but also practical. Too much claptraps and nonsense gives the employees an impression that the company is all words and no actions.

What Makes a Good Company Policy

Now that we all know the common mistakes that you should avoid, this section will discuss the key elements that make a company policy good and effective. While the context of your policy largely depends on the nature, size, field of industry, and the number of years in the business, it should generally include the following key components:

  • Statement of Purpose

This section should provide an outline or summary of the reasons of issuing a company policy, along with its objectives or goals that the organization wishes to achieve.

  • Specifications

It should stipulate the rules, requirements, and behavior expected from the members of the organization.

  • Implementation

This section should provide a detailed information on the parties that are assigned to perform individual policy statements and ensure strict policy implementation.

  • Effective Date

In this section, it shows the date in which the policy is put into action.

  • Definition of term (optional)

To ensure that all employees understand the information found in the company policy, this section provides definition of terms and concepts that are unfamiliar with most employees.

  • Applicability and Scope (optional)

This section provides a statement to whom the policy are designed for and how it can affect them.

  • Background (optional)

It provides a statement of reasons, as well as the history and intention, for writing the company policy.

Examples of Company Policies

  • Employee Conduct

Writing an employee conduct policy serves as a guideline for proper behavior that should be observed by the employees. Oftentimes, it includes the safety procedures in the workplace, appropriate dress code, computer and Internet usage, and harassment.

  • Disciplinary Policy

Sometimes when an employee failed to adhere to the company policy, you will have no choice but to terminate the employment. In case when such scenario arises, it is important to be strict and straightforward, especially when the employee has already received warnings from the management. To protect the interest of the company, make sure to provide a detailed history of problems and issues on the employee performance reports.

  • Attendance and Time Off

This policy is written to establish strict rules and guidelines in terms of employee work schedules. The main purpose of the attendance policy is to guide employees in scheduling their time off from work or in informing their superiors about their absences and tardiness. Included in this policy are the consequences that will be imposed on employees who failed to adhere to the schedule given to them.

  • Drug Abuse

Most companies around the globe implement drug abuse policy to prohibit their employees from using dangerous drugs and alcohol especially working hours. In case the company allows cigarette breaks, their policies provides a complete outline of the smoking procedure that must be observed by the employees.

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Final Thoughts

Written company policy is a great and effective way to protect everyone’s right and provide a safe and fair working environment. Although a company policy does not offer 100 percent prevention of certain issues, it can effective offer protection for your company when you recruit new pool of employees and work with your business partners.

Now that we have reached the end part of this article, make sure to always keep in mind all the information that we have provided. If you still find it difficult to write your company policy, make sure to check out and download our collection of professional policy templates. By using our template as your reference, it will help you create a policy that will work best for your company and business. So what are you waiting for? Browse for more templates and download them now!

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