How to Develop and Implement a New Company Policy?

New Company Policy in India: Policies are like “holy books” for human resource managers, as their entire work revolves around them, like ensuring a legal and safe work environment.

A policy is a tool that aligns with this HR or company mission. But policy development is not all sunshine and roses.

Introducing a new company policy in an organization is never a straightforward task, as often a policy doesn’t get employee buy-in.

Nonetheless, it’s vital for ventures of all shapes and sizes. So, if you’re planning to develop and implement a new company policy and want to do it efficiently, then we’ve got you covered.

But before getting into the “how” of things, it’s vital to understand the “what” of things. So, let’s discuss company policies and their different types.

What is the a new company policy?

A company policy is a set of guidelines to help the organization take decisions while carrying out vital functions. These are well-documented rules, providing a clear pathway for the company to achieve its goals. Besides, it helps employees understand the dos and don’ts of the workplace. Think of them as rules of engagement within a company, specifying what is expected of each employee.

Types of Company Policies

For an organization, company policies can be broadly restricted to the following types:

1. HR Policies

These policies blanket the essence of a company—from onboarding and offboarding to employee engagement, retirement benefits, induction, insurance, and housing loans, each aspect of official conduct falls under HR policies.

2. Security Policies

These policies define proper conduct on the company premises, causing no harm to fellow workers or infrastructure. Policies related to dress code, computer etiquette, and anti-sexual harassment fall under this type.

3. Operational Policies

An operation policy is specific to each department, project, or team.

4. IT Policies

These policies cover various accesses within the company as well as data sharing.IT policies generally govern the misuse of critical client information.

Importance of a New Company Policy

Policies provide numerous advantages to a business.Let’s discuss some of them.

A. Increase Compliance

Every organization or industry has its own set of rules and regulations that the members have to follow. Company policies, in particular, provide employees with clarity about what is expected of them in various aspects. As a result, they help increase compliance within the organization.

B. Protects Employee’s Rights

There are many company policies specifically made for employees. These usually include their rights as an employee and what they can do if they’ve been wronged.

C. Promote a Healthy Environment

Company policies specify what is acceptable and unacceptable in the workspace. In this way, they promote mutual respect and camaraderie in the company, resulting in a comparatively healthier environment.

How to Develop and Implement a New Company Policy in India?

While developing and implementing company policies in India can be tricky, it can be rewarding if proper steps are taken. Here’s an easy guide to creating a relevant and impactful new company policy for your organization.

1. Identify why you need the policy.

We all have heard the saying, “Excess of everything is bad.” The same maxim holds true for corporate policy.Before developing a new company policy, ask yourself, “Why does my organization need it?”

Doing so will allow you to understand if your “why” is actually strong enough to be turned into a full-fledged policy. Creating policies for every unforeseen event can limit management’s ability to address unique situations. Here are a few instances where you may want to develop and implement a new company policy.

If an employee’s behavior indicates confusion about the rules of engagement within the company,
if the company requires legal protection.
If there’s a distinct need to create regulations and consistent standards,
If there is a need to build consistency in the treatment of employees,
If it is necessary to comply with government laws and regulations,

2. Determine the objective and scope of the policy

After understanding the “why” of a policy, move on to its objectives and scope. Every new company policy must have clear goals or objectives the company wants to achieve by implementing it. But that’s not all. A policy’s scope is just as vital. As policymakers, HRs must be clear on a policy’s purpose.

Here are some pointers they must ponder before implementing a new company policy.

What is the end result of a policy? It could be employee efficiency, improving productivity, providing equal employment opportunities, and enhancing safety, among others.
How is it applicable? It’s essential to know a policy’s applicability. For instance, to whom does it apply, and to what grade is it applicable?

3. Collect as much information as possible

The worst thing you can do while drafting a new company policy is to rush the research process. Instead of hurrying to draft the policy, focus on collecting as much information about the topic as possible.

For instance, if you’re drafting a policy related to health and safety, always involve technical experts for their valuable input. Aside from that, here are some things that would be extremely beneficial to you:

Conduct online research to check for similar policies at other organizations.
Try to involve legal experts and external consultants as needed early on.
Review existing policies to avoid possible overwriting or duplication.
Take part in discussions on the respective topic with industry peers.

4. Draft the policy

While drafting a new company policy, follow the “Write, Review, and Rewrite” technique. Here are some basic rules that can help you:

Keep the policy precise and easy to comprehend. For that, you must keep your target audience in mind. Besides, it shouldn’t be hard to implement.
Don’t aim for the policy to be perfect by trying to cover every minute instance while drafting. Instead, emphasize the critical and possible scenarios concerned with it.
Always be adaptable by leaving room for change if necessary.
Invite a small group of employees to participate in a pilot study to assess their comprehension.After that, take feedback and make any necessary changes.

5. Approval and support from the legal team and top management

This step in the new company policy development is a must for every policymaker. Once you’ve prepared the draft, bring in a legal expert to check for any inconsistencies and flaws from a compliance viewpoint. After that, present the policy to the top management for review and approval.

6. Inform employees

After you finish the step mentioned above, don’t simply change the employee handbook or update your files. Instead, be proactive by reaching out to a larger employee audience.

That would allow them to understand and embrace the changes faster. Here are some pointers to keep in mind while informing your employees of a new company policy.

Send individual emails to employees informing them of the vital policy aspects. Besides, offer them a link to read the policy in detail on the company portal.
Put the policy on a physical notice board for the employees to see and discuss. In addition, you can use posters or placards at locations like a pantry, lobby, cafeteria, etc.
Modify employee orientation programs if needed.
Try being patient while dealing with their apprehensions and resistance.
Arrange training programs if there are large doubts.

7. Implementing the Policy

The final step is to implement your new company policy. You can do so after successfully incorporating the steps mentioned above. However, don’t let implementation be the end of things.

Instead, keep an eye on the objectives and see if they’re being achieved. Besides, don’t hesitate to revoke any clauses as per your requirements and take the necessary actions.

FAQs on New Company Policy in India

The frequently asked questions on how to implement new company policies in India are given below:

How do you develop company policies?

Start with identifying why you need a particular policy, decide its objectives, gather information, and start drafting. After that, obtain legal review and management approval before implementing a policy.

What are the 10 policies all companies must have?

Policies on equality, health, safety, a code of conduct, data protection, privacy, anti-harassment, BYOD, Social media and credit should be present in every company.

Who formulates the policies of a company?

In most cases, human resource managers and senior managers formulate guidelines and key policies for a company.

How do you develop HR policies?

The first step to developing an HR policy is understanding the need for it. Once you’ve done that, compare it to the present capabilities of the HR department. It would allow you to compare the gaps and formulate strategies accordingly. After that, you can start the drafting process before seeking approval from the management and legal teams.