A business, be it a start-up, a small company, or a multi-million dollar enterprise, requires a Human Resource Department or Personnel, who drafts the HR policies and defines the work culture and procedures of a company. However, it is not uncommon for a small business to lack an established human resource department or personnel.

HR Policy is an important document that defines the culture, code of conduct, rules and procedures of a company and as such small business owners should still educate themselves on the federal and state employment regulations that apply to employers and adopt human resources policies. Human resources policies are intrinsically linked to labor laws that the federal and state labor boards enforce.

HR policies set out obligations, standards of behavior and document disciplinary procedures (among many other things). Their specific function can vary widely, including but not limited to: 

  • Providing clear communication between an organization and its employees regarding their condition of employment. 
  • Forming a basis for treating all employees fairly and equally. 
  • Setting and managing employee expectations. 
  • Establishing guidelines for supervisors and managers. 
  • Forming a basis for developing the employee handbook. 
  • Communicating the organization’s goals and values. 
  • Creating a basis for regularly reviewing possible changes that affect employees. 
  • Providing a ‘how-to’ on how to apply policies across all levels of an organization. 
  • Forming a context for various programs, such as supervisor training programs and employee onboarding and orientation programs. 
  • Ensuring all policies are aligned to legal requirements and best practices. 
  • Creating a common and healthy working environment. 

Giving a clear picture of career growth in the organization. 


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