It is easy to see why every business needs an HR Manual. It increases productivity, reduces costs and minimises legal issues. And, it also minimises fraud. While every business is sure to benefit from a HR policy document, it is the SMEs who stand to gain most. Provided, it is drafted properly.
The question ‘How to prepare an effective HR Manual’ is a slightly complex one but these six steps help you to get a framework. The draft can then be polished and customised for your company.
Plan the structure of the HR Manual around your company’s vision statement. The Policy document should lead to realisation of the objectives. In the process, it has 2-way link with the organisation structure, which influences job roles and responsibilities. Therefore, the manual should be designed to acquire, nurse and retain talent at all levels.
Broad list: To ensure that the HR manual is exhaustive, include policies that cover as many of these topics that are relevant to your company. Begin with Recruitment, On-boarding, training and Separation. Obviously, the Manual will touch upon or refer to the Organisation Structure, job description and Pay Scales at this stage. If your industry employs niche expertise or people with a variety of skills, frame a separate policy to fix the Pay Scales.
Focus on policy regarding Appraisals, Promotions and Rewards; it will pay extra dividends in nurturing employee satisfaction and retention. Pay equal attention to security and privacy both in terms of legal and company requirements. For example, policies on Entry and Exit, Employee ID cards, scheduling work or escort for female staff at certain hours need to accommodate both labour law and Company objectives.
Going forward, design policies for shift hours, recording attendance, holidays, employee transport, payroll, dress code and similar day-to-day operations.
Unions: Align the policies in line with the collective bargaining agreement in case your Company has a labour union.
Involve Stakeholders: The HR policies cover a wide range of topics from recruitment to retirement. Each has financial and most of them have legal implications. And, they influence productivity across all the departments. For this reason, it is best to base the HR Manual on inputs from all the stakeholders such as different departments, auditors and labour law advisors.
Diverse know-how: For the reasons already discussed, instead of HR doing the job in isolation, it would be ideal if a panel of persons with legal, industry and financial expertise draft the manual.
Simple is beautiful: Make doubly sure that the language and terms used are simple and understandable by everyone. In fact at Career Prospect, we strongly believe that high sounding words never actually sound nice and never convince the people. We believe that the HR Manual is a working document that delivers results. For this, we have a panel of HR Professionals with experience in preparing HR Manuals for different domains and regions. To know how we can assist you, send me an Email.