If you own a small business, you are your own human resources department. In a job – there is a tremendous amount of what you need – and becoming a solid HR person can seem overwhelming. Putting all of this in writing is another challenge. But if you break human resources policies down into a few key areas, preparing your own Human Resource Management, or HRM, policies and procedures manual will be easier to tackle.
HRM policies and procedures are guidelines supervisors and managers to use as a reference for managing your staff. They state what employees can and cannot do. They're set by you, the owner or management, and these policies and procedures are governed by federal, state and local employment laws.
Advertisement Article continues below this adFor each key area, you'll state what your policies are. Then add procedures for employees to follow the policies, and what happens if the procedures are broken. A good set of HRM policies and procedures is a living document. It should be the current definitive guide for your company.
This doesn't mean that you need to start from scratch. HRM policies and procedures, as well as examples and templates, are available online. If you're experiencing a growth spurt, you could hire an HR consultant to put your policies and procedures together. If you go this route, be sure to get an electronic copy, so that you can update it, when changes occur.
HR's most important role is to be in compliance with federal, state and local laws, regarding employment. Not following these laws will leave you vulnerable to lawsuits – the last thing any business owner needs. Well-written HRM policies and procedures will cover applicable laws, as well as items that are specific to your industry and business. Key elements are:
Advertisement Article continues below this adThis list will help get your started. Add to it as you see fit. For example, some businesses are now including anti-bullying policies and information on LGBTQ rights.
The U.S. Department of Labor's website is the best source for federal regulations. The Fair Labor Standards Act is of particular importance. So is the Americans with Disabilities Act and Title VII of the Civil Rights Act.
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Be aware that many, but not all, states have simply adopted federal employment laws as their own. Your state may have a higher bar for minimum wage, overtime pay and other matters. Go to your state's ".gov" website for state laws. Where a state's law is different from federal law, whichever one is more beneficial to the employee, prevails.
Some cities and even some counties have their own employment laws. The most common difference is in minimum wage requirements. However, some cover other areas of labor law too. So, be sure to check.
Unlike HRM policies and procedures, an employee handbook's audience is employees. An employee handbook tells your employees what is expected of them. They don't need the same level of detail that's in your HRM policies and procedures and you don't want to include any sensitive information like how pay and bonuses are calculated .
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However, you can use the same basic document to write an employee handbook. Delete the information that employees don't need to know. In addition to saving time, using the same basic document can help prevent discrepancies.
Passing out an employee handbook is not a legal requirement, but it can reduce the chances of an employment lawsuit. Many companies have their employees sign a document, which states that they have received and read the employee handbook.