10 Corporate Policies Every Organisation Must Have
Every organisation must have certain policies and procedures that effectively communicate the standard action and behaviour by employees. Having certain guidelines and a comprehensive manual can also help your company protect itself from certain legal action and employee fraud.
Each employee should have an outlined role and what’s expected of them. This can be accomplished by comprehensively detailing the level of responsibility that they must be fulfilling and what authority they hold over decision making in the company.
Your organisation’s policy should cover details related to employment, working hours, remuneration, vacations, sick leave, and retirement. Other areas like bonuses, salary increases should also be covered in detail so your employees know what s expected of them to be entitled for the above perks.
An organisation chart will show, at a glance, who is supposed to report to whom and where they fit into the overall structure of the company.
What are the company’s term for credits and how long will the organisation wait for payment of credits? This policy should also state how to deal with debtors who don’t comply to those terms.
Who in the company is authorised to spend money for business purposes? What are the expenditure limits? Who can approve an expense above the prescribed limit? This section should also state the kind of paperwork that is required when making the purchase and the amount of competitive pricing that should be obtained, along with records that must be maintained for all transactions.
Not having a policy in place to deal with employees which disciplinary issues might lead to unnecessary legal hassles in the future. Also, if you already have a policy in place, ensure that you make the policy clear to your employees with the help of regular training. Issues like theft, lack of punctuality and sexual misconduct should be included in this policy.
Occupational Health and Safety
This particular section should be drafted by keeping the specific provincial or federal legislation in mind. Clear guidelines need to be given to employees as to what constitutes as safe behaviour on work.
Internet and emails
Having firm policies in place that prohibit visiting inappropriate content. Inappropriate websites or emails can be costly to the organisation in the long term.
Go beyond the what
Most organisations have a policy in place that simply states what the employees are supposed to do in a certain situation without explaining the logic behind the policy.
Providing reasons along with policies not only provide employees with valuable information but also help prevent misunderstanding at a later date when the policy is examined or questioned.
Irrespective of the scale of your business having a policy and procedure manual is an essential tool for the organisation. It lets everybody know where they exactly fit in and where they can head to for decision making. Enough time and effort should be invested in preparing an organisation’s policy manual and all employees should be kept up to date with it. Finally, keep reviewing your policy at least annually so that it is up-to-date and consistent with current best practices.