Workplace Policies: Who Needs Them?

Why Policies?

Think about it: when was the last time you encountered an issue at work that both you and your employer did not know how to solve? It doesn’t matter the nature of the issue, your company will always ask for your input on how to make sure the issue does not happen again. One of the few best ways to assure that is through company policy.

Aren’t Policies Just for Big Corporations?

While large corporations have long recognized the benefits of workplace policies in providing structure and addressing unforeseen issues (ranging from payment procedures and internet usage to more sensitive matters like harassment and drug use), there's a misconception that such policies are only suited for bigger companies. However, considering that small and medium-sized enterprises (SMEs) constitute 90% of global businesses and create seven out of ten jobs (World Bank data), it's clear that company policies are just as vital for the health and productivity of smaller companies. These policies are instrumental in ensuring employee compliance and fostering a harmonious work environment.

What Happens When Companies Operate Without Policies?

Many employers find themselves puzzled by declining productivity, often not realizing that the absence of a comprehensive policy framework is a key factor. A well-defined set of policies offers crucial guidance for employees on handling various workplace situations and understanding the repercussions of inappropriate behaviors. The lack of such policies can lead to numerous issues, including:

• Legal Challenges: Without clear policies, particularly regarding workplace safety, companies risk legal repercussions from preventable incidents.

• Customer Dissatisfaction: Forbes reports that 96% of customers leave businesses due to poor service. Companies lacking clear customer service guidelines are likely to experience significant client loss.

• Increased Operational Costs: High employee turnover, a common issue in unsatisfying work environments, can be costly. Replacing an employee can cost about 33% of their annual salary, according to recent research.

• Employee Disengagement: In the absence of clear conduct standards and problem-solving guidelines, employees may feel lost and unacknowledged, leading to disengagement.
  

Conclusion

 Rule of thumb: the best way to implement company policies is to communicate about them from the very beginning when employees are hired, and that communication should most definitely not be restricted to including those policies in the employee handbook, but be diluted within training and development programs, constantly mentioned in meetings and workshops as part of the working culture. And, finally, enforcing the policies by consistently applying them with a positive behavior of “doing the right thing” – there is no need for a negative punishing attitude when employees know they will be disciplined, as even disciplining itself, if not to say “developing”, is intended to be for the collective greater good of the organization.