Human resources were created to provide an ethical and safe workplace environment for employees, by enforcing HR policies. Even though different industries have different regulatory compliances to adhere to, HR policies tend to be similar or have the same objectives across the board.

No matter which industry your company is in or what size the company is, your HR professional should aim to create policies that ensure all employees are fairly treated and never discriminated against in the workplace and streamline the company’s day-to-day operations.

Effective and well-written policies take it a step further by fostering a more positive and transparent workplace environment, where employees are motivated, have high morale, and are productive. This will result in the company having a high employee retention rate, which helps retain and attract new employees.

As such, it’s important to implement good HR policies and practices to sustain and build up the company’s success in the long run. Here are the ways to do so.

1. Classify business size

One of the most prominent differences between companies is their sizes. Depending on how many employees there are, the industry, and the annual revenue, companies are grouped into three categories: small, medium-sized, and large.

The general consensus is that small companies have less than 200 employees, whereas medium-sized and large companies have around 300 to 2,000 and more, respectively.

Employees have limited resources and more responsibilities than their larger counterparts for small to medium-sized businesses. Hence, it’s important that the HR policies provide sufficient support. By determining the business size, you can better understand how to implement HR policies and procedures that are efficient for the HR team and meet the needs of employees and the company.

2. Setting up an HR framework

Establishing the HR framework is arguably the most essential step in drafting HR policies. It provides clear guidelines on how human resource is carried out in the company and how it helps the company achieve its goals in the long run. It can essentially be considered an encyclopaedia to which stakeholders can constantly refer throughout the operation period.

There are 5 key areas to touch upon when setting up the HR framework: recruitment, learning and development, performance management, compensation, and succession planning. Once you have sorted out these factors, you’ll find it much easier for you and the HR team to develop people-centric HR policies and assess the flexibility in the organisational structure.

3. Enhance the policies

After you have drafted the HR framework, you need to look into each policy and further develop them. For example, do you think it’s more efficient to set up a payroll software for compensation and benefits? When it comes to performance management, is the company prepared to provide leadership training for its employees? You should constantly ask such questions in order to create a comprehensive HR framework.

4. Enforce HR compliance

Like regulatory compliance for industry sectors, the HR department has to adhere to legal rules and regulations. These laws may differ slightly in each country, but they generally serve the same purpose: to protect employees’ rights. Companies that fail to follow these laws are subjected to massive penalties, legal investigations, and even forced closure in more severe cases.

Therefore, HR compliance is necessary to minimise legal risks and ensure that the company does not damage its reputation by compromising  its employment and work practices on legislation.

5. Approval and publication

It’s advisable to consult with a HR consultant  before approving and publishing the HR policies. This is simply to make sure that all rules and guidelines listed down act according to your country’s laws.

Once your HR policies are approved and good to publish, you can start to implementthem by creating an employee handbook or scheduling a communication meeting for all members to introduce these policies.

Conclusion

If you still find yourself confused and overwhelmed even after reading the abovementioned points, don’t fret, as planning and carrying out HR policies is never a straightforward task. This is part of why effective HR can be notoriously difficult to achieve, especially if the company does not have a dedicated HR team.

If you’re looking to create valuable HR policies, you can consider hiring specialised providers that outsource HR services in Singapore, such as Enable Consulting. Aside from providing HR services and solutions, our consulting team at Enable Consulting can offer guidance and assistance in implementing HR systems and HRMS software in Singapore. These programs can help your HR department implement the HR policies efficiently and accurately.