The Top 5 HR Policies Every Small Business Must Have (No Matter the Industry)

By ProspectHR Consulting Director of Business Operations, Alexandra Lewis

Human resource (HR) policies can help create work environments that value consistency and fairness and foster employee growth and productivity. Knowing which ones will best enhance your employee experience and support organization success can be challenging, but regardless of the nature of your business, there are some basic HR policies every business must have in place.

These five essential policies will maintain your business’ legal compliance and inspire an engaged and well-informed workforce.

1. Workplace Belonging
Strong statements prohibiting discrimination and sexual harassment are the basis of workplace belonging policies. Federal, state and local legal requirements set the foundation, but the most effective policies go beyond these parameters to encourage inclusiveness and acceptance, foster a welcoming and productive work culture, prohibit bullying and enhance employee retention.

    2. Compensation and Employee Classification
    How, when and how much a person is paid are top concerns for most employees. Clear guidelines and processes eliminate confusion, promote a culture rooted in fairness, and ensure adherence to payroll-related legal requirements.

      Compensation systems should also focus on accurate job descriptions and overtime eligibility classifications that satisfy federal and state wage and hour laws.

      3. Attendance, Paid time off and Leaves of Absence
      For an organization to run smoothly, employers must communicate their expectations around attendance and time off. Employees should be aware of the types of leave available (such as sick, vacation, personal, paternity), whether leaves will be paid, and the process for requesting time away from work.

      Employers must also comply with any legal schemes mandating specific types of leave — for example, family and medical leave under the federal family and medical leave act (FMLA) or state sick leave laws.

      4. Code of Conduct
      A Code of Conduct establishes general rules to ensure an ethical and respect-driven workplace. It directs employees to engage in respectful interactions with each other as well as with clients/customers. Codes of Conduct can also include guidelines on appropriate attire, technology and social media usage, protection of company property and much more.

      5. Performance Management
      Employees need insightful feedback to improve their performance and grow with an organization. Comprehensive performance management policies establish success and outlining performance expectations, providing performance reviews at regular intervals, aligning individual and organizational goals for mutual success and addressing employee improvement as needed.

      Implementing these five policies will not only provide compliance with regulatory requirements, but, importantly, create a harmonious and productive work environment. For small businesses, such as dental offices, that’s not just good HR, it’s good business.

      Alexandra Lewis, Director of Business Operations and HR Consultant

      Alexandra Lewis is a seasoned professional with over 10 years of experience in HR and operations for both non-profit and for-profit organizations. Prior to joining ProspectHR, Alexandra honed her skills in a Human Resources role within a professional membership organization and played a critical role in employee and Board member retention. This experience gave her a unique vantage point to identify operational challenges, identify HR’s role and develop strategic solutions that enhance organizational efficiency.

      Alexandra’s diverse background enables her to blend her knowledge of organizational structure with a customer-focused mindset. Currently, as the Director of Business Operations for ProspectHR, Alexandra manages client onboarding and success, ensuring a seamless experience for clients. Her ability to spot patterns and tackle complex problems makes her an invaluable asset to her team. Alexandra earned a B.S. from Florida State University.

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