How to write HR policies: A guide to essential policies for every company

Clear HR policies are essential for promoting a fair, compliant, and positive workplace culture. These policies guide employee behavior, benefits, and leave, helping employees and managers understand expectations and rights. Creating these policies involves careful planning, clear communication, and a commitment to fairness. Let’s explore the essential policies every company should consider, how to write HR policies, and tips on organizing them into your employee handbook.

What HR policies should a company have?

Every HR department needs essential policies to stay legally compliant, ensure fairness, and support a positive workplace. Here are three key policies that most companies should have:

Equal Employment Opportunity (EEO) Policy

An EEO policy shows the company’s commitment to fair treatment in hiring, promotions, benefits, and other practices to create an inclusive and respectful workplace. This policy follows federal and state laws like Title VII of the Civil Rights Act, the ADA, and the ADEA, ensuring no discrimination based on race, color, religion, sex, national origin, age, disability, or other protected categories.

Policy against harassment and complaint procedure

This policy sets a zero-tolerance stance on all types of harassment, including protection from sexual harassment. It clearly defines what harassment is and offers a confidential way for employees to file complaints if they experience or witness it. A strong anti-harassment policy makes employees feel safe to speak up, which supports a respectful work environment.

Family and Medical Leave Act (FMLA) policy

The FMLA policy informs eligible employees about their right to take unpaid, job-protected leave for family or medical reasons, such as illness or the arrival of a new child. It explains who qualifies, reasons for leave, and how to request it, helping employees manage family and health needs while ensuring company compliance with federal law.

Other recommended HR policies

• Employee classification policy: Outlines criteria for classifying employees as exempt or nonexempt, determining eligibility for overtime pay.
• Compensation and payroll practices policy: Describes payment schedules, methods, and guidelines for wage adjustments.
• Paid time off policy: Explains how employees can accrue and use paid leave for vacations, illness, or personal time.
• Paid parental leave policy: Details leave options and eligibility for new parents to take time off for bonding with a newborn or adopted child.
• Leaves of absence (non-FMLA) policy: Provides guidelines for unpaid or short-term leave options outside of FMLA entitlements.
• Other benefits policy: Summarizes additional company benefits, such as health insurance, retirement plans, and wellness programs.
• Performance evaluation policy: Outlines the frequency and criteria for employee evaluations to support professional growth.
• Work rules and discipline policy: Sets expectations for employee behavior and explains disciplinary measures for rule violations.
• Access to personnel files policy: Allows employees to review their personnel records under specified conditions for transparency.
• Meal and break periods: Specifies scheduled meal and rest breaks to ensure employee well-being during work hours.
• Telework policy: Defines eligibility, expectations, and responsibilities for employees working remotely.
• Cybersecurity policy: Establishes protocols to protect company information and employee data from cyber threats.
• Reference policy: Explains the company’s approach to providing job references for former employees.
• Employee candidate referral program: Encourages employees to refer qualified candidates, often with incentives for successful hires.
• Social media and electronic monitoring: Clarifies permissible use of social media and electronic devices while safeguarding company information.
• Drug testing and medical marijuana: States guidelines for drug testing and the company’s position on medical marijuana use.
• Grooming and dress code: Sets standards for professional appearance to align with company culture and role requirements.
• Grievance or open-door policy: Offers a process for employees to voice concerns or complaints safely and constructively.
• Other policies unique to the organization: Covers policies specific to the company, like workplace safety or volunteer programs, to support company values and employee engagement.

How to write HR policies

Writing HR policies can be challenging because they need to balance clarity, legal compliance, and alignment with company culture. Policies must be specific enough to guide behavior but flexible enough to adapt to individual situations, which can be difficult. Use these tips when writing HR policies and procedures to help you find the right balance.

Start with clear goals for your HR policies

Before drafting policies, clarify the company’s needs and goals, focusing on rules that will help your business run smoothly, such as guidelines on attendance, employee behavior, and workplace safety. When policies align with real needs, they become more relevant and valuable in the daily work environment.

For example, if a goal is to create a positive culture, include policies that encourage respect and collaboration. Avoid making overly vague or strict policies, as these can lead to confusion or frustration.

Ensure policies comply with labor laws

Make sure your HR policies align with relevant labor laws. Compliance is essential for protecting employee rights and avoiding legal issues, including minimum wage, working hours, safety regulations, and employee protections. Following legal guidelines shows employees the company respects their rights and welfare.

For example, a well-defined policy on rest breaks ensures employees know they’re entitled to rest periods, which can prevent burnout. If there’s any uncertainty about legal requirements, consulting a legal advisor is a worthwhile step.

Keep policies clear and simple

When drafting policies, use straightforward language that’s easy to understand and free from legal jargon or overly complex terms. Policies that are too complex will likely confuse employees, reducing their effectiveness. Clear policies make expectations easy to follow and reinforce an organized workplace.

Instead of saying, “Supervisors must be contacted by telephone in the event of an unexcused employee absence,” try “Employees must call their immediate supervisors to report unexpected absences.” Though both sentences say the same thing, the second one is more straightforward because it uses an active tone of voice instead of a passive one.

Regularly review and update policies

As your company evolves, policies may need to change to reflect these shifts. Reviewing policies annually or after significant business changes, like a new location or shift to remote work, keeps them relevant and effective.

For example, if your workplace transitions to a hybrid model, an “in-office attendance” policy should be updated to include remote work guidelines. Outdated policies may lead to misunderstandings or non-compliance, so regular updates are essential.

Organize policies into a handbook

A handbook provides employees with a go-to resource for policies, setting clear expectations and reducing the need for repetitive explanations. When policies are organized in one place, it’s easier for employees to follow them. Keeping this handbook up-to-date ensures everyone is aware of any changes or new expectations.

What to include in an employee handbook

After covering the essential HR policies, the next step is to think about how these policies are communicated to employees. One of the most effective ways to do this is through a well-structured employee handbook.

Your company’s handbook should be a central resource housing core policies, expectations, and legal information. Keep in mind that not all policies need to be included in the employee handbook — just policies that are relevant to all employees, like the three we mentioned before (EEO, anti-harassment/anti-discrimination, and FMLA).

More detailed or department-specific policies, such as IT security protocols or safety guidelines for specific roles, can be kept in separate documents. This keeps the handbook concise and easy to reference while still providing access to other important policies as needed.

Foundational statements for your handbook

In addition to relevant policies, your handbook should set the framework for how employees understand and interact with those policies. It’s generally recommended to include the following:

At-will statement and contract disclaimer

In nearly all states (Montana is the exception), private employment is presumed to be at-will. This means that either the employee or the employer may terminate the employment relationship at any time, for any legal reason, with or without notice.

An at-will statement clarifies that the employment relationship can be ended by either the employer or the employee at any time, with or without reason or notice, as allowed by law. The contract disclaimer should state that the handbook does not create a contract or guarantee of employment. Including these statements protects the employer from legal claims if employment is terminated.

Exceptions to employment at will include employees covered by a collective bargaining agreement (union contract), public employees, and employees with an individual contract of employment that includes a specific term. Unless one of these exceptions applies, employers should take steps to preserve the at-will nature of the employment relationship.

The at-will disclaimer should be prominently placed and clearly stated, ideally in boldface or highlighted text to ensure employees are fully aware of its terms.

Employer’s right to revise policies

A statement reserving the employer’s right to change or update the handbook policies ensures flexibility to adapt to new laws, company needs, or industry standards. This disclaimer informs employees that policies may be revised as needed and reinforces that the handbook is a dynamic document rather than a fixed contract.

Employee acknowledgment form

A signed acknowledgment of the employee handbook can be a valuable tool for employers and supervisors when an employee claims unfamiliarity with company policies. This form shows that the employee is aware of — and acknowledges they’re aware of — the company’s policies and expectations. It also helps protect the employer by demonstrating that employees have been informed of the rules and guidelines.

At a minimum, employers should require employees to sign and date an acknowledgment confirming that they have received the handbook. Ideally, this acknowledgment should also state that the employee has read the handbook, or at least reviewed it.

For important policies or recent changes, consider listing or referencing these specific items on the acknowledgment form. Employees should then confirm that they understand these policies or know who to approach for clarification or additional information.

While it may not be realistic to expect employees to read the entire handbook, especially if it’s lengthy, it’s important to ensure they understand key elements. When introducing a new handbook, distributing it to new hires, or making significant updates, consider holding an orientation session to highlight the most important policies. After the meeting, ask employees to return their signed acknowledgments within a reasonable time frame (e.g., one to two weeks), allowing them time to review the document and raise any questions.

Simplify HR policy management

Navigating HR policies and compliance is easier and more efficient with the right tools. At BLR, we empower organizations to manage HR complexities smoothly and confidently. BLR’s HR solutions provide the resources, analysis, and support to ensure legal compliance, fair practices, and a positive workplace.

Contact us today to discover how BLR can simplify HR management and keep your organization running smoothly.