Written policies and procedures outline the organization's guidelines, rules, focus, and principles. Generally, policies and procedures are included in manuals created for employees. How to write business policies and procedures depends on the goals of the company itself.
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Part 1 of 5: Outline Business Goals
Step 1. Make a list of goals
As a manager or business owner, you know the company's goals. Consider things like sales goals, employee and management goals, and the business position you expect to be in the next few years.
- Try to set goals that are not only specific, but also attainable and worth striving for. For example, set financial goals that are within reach, and set goals for employee performance that can be achieved by following the policies and procedures that you will set.
- Once you've set your goals, make sure you're ready to commit as a business owner or manager. Setting goals is an important first step in developing policies and procedures. Then, no less important is to comply.
Step 2. Write down a list of jobs and procedures
Think about the daily events and tasks in your business. Write down every job that must be completed every day so that the business runs smoothly.
Consider the following: What tasks require formal description or direction? What procedures must be carried out consistently in the same way? Instead of focusing on manual work that doesn't require much instruction, focus on larger tasks
Step 3. List possible problems and solutions
Policies are made to ensure that everything runs smoothly and that employees and managers have standards of performance. Think about the problems that might arise in the absence of a policy. That way, you can think of the policies you need.
When thinking about a potential problem, look for a quick overview of how to solve or fix the problem. Think about issues around day-to-day business activities, such as finances, interactions between employees and customers, and employee behavior and attitudes
Part 2 of 5: Writing Business Policies
Step 1. List the policy categories
After considering the various possible issues that need to be resolved with the policy, think about the categories of each. For example, use categories such as safety, scheduling, behavior, pay, benefits, vacation or leave, and discrimination.
Later when compiling the manual, the policies already separated into categories will help you organize the manual and its sections. Categories also help you decide what's most important, and can break them down in greater detail
Step 2. Use the outline format to break down the various policies under each category
The template lets you dig deeper into aspects of each policy or category, and add terms and specifications as you go along. Use numbers to sort each section or category.
Start with a short outline. Then, after writing down all the initial ideas, you can go back to the outline and add or extend as you change
Step 3. Think of appropriate consequences for policy violations
Policies enable businesses to function properly, and also serve as standards that employees and management must adhere to. Policies also serve as written documents outlining how to address policy issues or violations. This is especially important when and if action is needed to resolve the issue.
When written in official documents, policies can cover the legal rights and obligations of employees and the company. The policy includes information on employment rights for people with disabilities, taxes, and prohibitions on discrimination and harassment in the workplace. Make sure you enter the information according to applicable law
Step 4. Establish a clear policy on dismissal
If you have to fire an employee for violating a policy, it is this written policy that will serve as evidence if the employee believes he was unfairly fired. Make sure you dedicate a section to discussing the rules for dismissal.
You should also create a hiring policy. For example, background checks before a candidate is hired, or a probationary period after an employee is recruited and before he becomes a permanent employee. Make sure you create and outline clear terms
Step 5. Use clear active language
Write all policies clearly in such a way that they are not misinterpreted or misunderstood. If there is another interpretation, consider rewriting it in another language.
For example, don't write, "Additional sick leave may be granted under certain circumstances." Instead, write "Additional sick leave is only approved with the explicit permission of the on-duty manager."
Part 3 of 5: Writing Procedures
Step 1. Determine what jobs require detailed procedures
Not all jobs or incidents require detailed instructions. Prioritize tasks or procedures that need to be done consistently, such as payroll or scheduling.
When deciding which procedure requires detail, consider the following questions: Was the procedure lengthy or complicated? What are the consequences if there is an error in implementation? Have any recent important changes been implemented? Does this procedure require important or extensive documents? Are employees often confused by the procedure?
Step 2. Gather the information needed for each procedure
Before outlining the procedure, you need to know all the steps and their aspects. Consider employee questions that have come up, and any problems you may have encountered.
Even if you have all the information, you will still need to stick to the basics of the procedure itself. Think about what readers or employees need to understand and carry out the procedure
Step 3. Use all the information to write a clear procedure
Use the active language. Try to avoid long and redundant words. Make sure you don't use language that is difficult to understand, including jargon that employees may not know.
For example, instead of writing, "Staff torn payroll receipts must be kept in the financial file," use the following language, "Keeping torn payroll receipts in the financial file."
Part 4 of 5: Understanding Legality
Step 1. Enter a section on the anti-discrimination policy
All business owners must comply with the anti-discrimination policies that have been set by the government. Make sure you include information about the policy along with expectations that all employees comply with it.
Information on equal employment opportunities should also be included in policies, as well as laws on the right to work for people with disabilities and policies on harassment
Step 2. Make sure your policy is legal
You must ensure that all policies drawn up are fair and in accordance with the law. There are many resources you can use to find out if your policy is in line with applicable law.
You can also ask legal counsel to study the policies you drafted before applying them to employees. As a business owner, having a legal advisor you can consult on a regular basis is very beneficial
Step 3. Ask employees to sign draft policies and procedures
New employees should be asked to agree and sign the policy and procedure documents, and be provided with a copy for reference. In addition, any changes must be re-signed by all employees. This is to ensure they are all bound by the policy should there be any legal action to be taken by both parties in the future.
Minors cannot legally enter into contracts. If you hire employees under the age of 18, make sure they have written permission from a guardian to enter into a contract as the parent or guardian can legally cancel the contract
Part 5 of 5: Compiling the Manual
Step 1. Arrange the information in a logical order
Start with the bigger points, then follow with the smaller ones. For example, instead of starting with the compensation category, start the manual with the hiring process or eligibility category.
- Consider opening a manual with a description of the company's goals as you outlined at the outset. Write a clear, unified paragraph or two that summarizes the manual, what employees can expect from the company, and what the company expects from employees.
- Use the outline to create subcategories in the manual. Make a table of contents when you're done so that each piece of information is easy to find.
Step 2. Use a picture, chart, or diagram
There are people who are more visual so the diagrams, charts, or pictures in the manual can help different types of employees understand concepts. Images can simplify procedures and policies.
For example, you can create a chart or table that lists various titles and their duties. You can also use a table of questions and answers that employees can use as a reference if needed
Step 3. Provide manuals for all employees to easily access
Ideally, new employees receive a copy of the manual when hired, and old employees receive a new copy when there is a revision. Consider having all employees sign a contract stating that they understand all of the points outlined in the manual, and agree to it.
