How to Create a Fair and Effective Company Policy

Let’s face it; nobody likes being told what to do. But when running a business, creating company policies is a necessary evil. Why? Because policies help ensure everyone is on the same page, treated fairly, and the business runs smoothly.

But how do you create a fair and effective policy? Don’t worry; we’ve got you covered.

Here are five steps to follow when creating company policies that work for everyone:

1. Find Out if a Policy Is Necessary

A company policy is like those mandatory safety videos you must watch before a flight. Yet, unlike being able to turn a blind eye, you can’t ignore them. Company policies are crucial in maintaining a fair and effective workplace. Without them, there’s a lot of confusion and miscommunication.

But how do you know if a policy is necessary? Here’s how:

Identify the problem.

Before crafting a policy, identify each individual issue your company currently struggles with. Is tardiness an issue? Are employees using company resources for personal reasons? You need to know the problem to create a policy to address it. So, ask yourself what makes work more challenging and which policies will fix them.

Assess the impact: Will the policy positively impact the workplace? Will it solve the problem or create more obstacles? Assessing the result is crucial to developing the right strategy. Later, depending on the outcome, you may need a tweak a policy. But, for starters, evaluating the impact is an excellent place to start.

Consider alternatives: Is a policy the only solution? Are there alternative, less restrictive solutions? Brainstorm what the best solution is and converse with other executives to decide. For example, consider setting up guidelines instead of a policy if the issue is handling company mileage. Hotel Engine further discusses how to handle company mileage on their site.

Get feedback: Only create a policy with feedback from those impacted by it. Involve employees in policy creation, and get their thoughts and suggestions. Only with your colleague’s assistance will you develop the right action plan. Following these steps will ensure a fair and effective policy.

2. Gain Stakeholder Support


Getting stakeholders’ support is crucial to creating a successful company policy. Unfortunately, many companies need to consult stakeholders before they draft policies. To avoid this pitfall, communicate with managers and supervisors. They will enforce the policy. This communication should include the following:

  •     The reasons for the new policy or revision
  •     Its potential impact on stakeholders
  •     Any possible concerns

Hearing from these stakeholders and making revisions creates a policy everyone supports. After these discussions, legal counsel can conduct its final policy review.

3. Establish the Policy Content

Creating a company policy ensures the business runs smoothly and employees understand what is expected. Therefore, one crucial step in policy creation is establishing the policy content.

When creating a policy, avoid inflexible language. Instead, build flexibility into the wording. This will ensure the policy can adapt to changing circumstances and remain relevant.

Also, drop promises that could be interpreted as contracts. Removing them will prevent misunderstandings. Generally, organizations should refrain from using language like “only,” “always,” “must,” or “will.”

4. Research


You can gather the information that will shape your policy by conducting research.

Here are some tips to make your study more effective:

  •     Use existing guidelines and policies as a starting point for your own policy.
  •     Reference HR magazines, guides, and whitepapers for concise language to express policy.
  •     Seek advice from an attorney or law professional for legal implications.
  •     Gather and analyze these materials before creating a policy. Then, you can be sure you’re making a comprehensive and legally sound policy.

5. Speak with Employees

Effective policies are essential for a fair and efficient workplace. But how do you create these policies? One critical step is speaking with employees. After all, they’re the ones affected by the guidelines.

Asking for their input can help ensure fair and effective policies. Involving employees in policy-making can increase buy-ins. This helps create a collaborative culture.

Bottom Line

Creating a fair and useful company policy can be simple. First, understand which areas need addressing. Then, consider your employees’ rights and best interests, and stay ahead of legislation. For example, a good company mileage policy supports a healthy working culture if done correctly. Plus, it enhances employee satisfaction. Zero in on what it takes to develop the proper policy, and everyone will remain on the same page.