Any successful business owner will tell you that human resources are core to growing a startup. But managing humans is a very complex endeavour — which is why policies are vital to a small business thriving.

HR policies are designed to guide both managers and employees around different issues. They trickle down to create the HR procedures that define the daily functioning of the organisation. As the company grows, more policies become pertinent, but as a small business some are critical from day one. When appropriate policies are in place and enforced, transparency becomes the norm.

Ten crucial HR policies for small businesses

Different regions have their own mandatory basic HR policies, so before employing anyone, make sure you know the ones that apply to your district. On top of those fundamentals, here are the policies to consider.

1. Equal opportunities

Every business in the 21st century needs an equal opportunity policy. Discrimination based on gender, age, religion, sex, marriage, race, status, disability, pregnancy or gender reassignment shouldn’t occur in the workplace. As an employer, you’re obligated to create a fair and stable environment where employees have equal access and opportunities to further their careers.

2. Disciplinary and dismissal policy

Problems are bound to arise even in the friendliest, healthiest workplaces. It’s advisable to have procedures and stated directions ready in advance. The policy should set out what discipline employees can receive and how, and extend to dismissal processes. Whatever the offence, the disciplinary or dismissal process must be fairly administered.

3. Health and safety policy

HR policies should include designated procedures for safety. In an emergency, the health and safety policy should precisely outline what employees are to do — for instance, a clear guide on first aid and emergency response if someone is injured or there’s a fire.

4. Grievance policy

More often than not, employees will hold grievances and issues will arise. They need to know how to raise them: who to direct grievances to, how matters should be tabled for discussion, and what the company expects in such situations.

5. Leave of absence and sick leave

There will always be days employees can’t come to work — holidays, maternity or paternity duties, parental leave, jury service, sickness and more. It’s vital to create a clear-cut guide on how such situations should be handled and processed.

6. Research, training and development

Growth is arguably the highest-priority goal for any small business, and it can’t come from the owner’s effort alone. Systematically giving employees the skills, resources and knowledge they need can blitz-scale a business. A clearly stated policy lets employers support their hires professionally, which positively influences their contribution.

7. Harassment and bullying

As meticulous as your hiring process may be, you can’t predict what people will do. As a business owner you’re responsible if harassment, bullying or discrimination occurs — but a concrete policy mitigates that risk. It should define exactly what those behaviours entail and how allegations will be dealt with after due investigation.

8. Social media

Social media has become core to modern business, and every operation is now intertwined with it. A social media policy should reflect how the company expects employees to behave online — especially if they carry the company name on their profile — while staying fair and within the limits of what’s reasonable.

9. Privacy and communication

Every business has confidential information to keep from competitors, and must also protect the personal information of employees, customers and visitors. A privacy policy should guide the use of personal, confidential and health information, with disciplinary and legal measures outlined for defaults. Internet and email policies should also set out how company property — computers, laptops, work phones — can be used.

10. Code of conduct

A code of conduct sets the minimum behavioural standard expected of employees. It can cover company property usage, dress code, punctuality and other regulations, and should make clear what the company accepts and how defaults will be handled. These rules should be clear, easily understood and communicated to employees when they join.

Final take

Writing HR policies isn’t easy, but the consequences of not having them in place can be dire. As your business grows, identify the policies you need and set up the structures for adherence, execution and revision.