The value of Policies and Procedures for your Company: Don’t Wait till a Problem Arises
Today’s business climate is highly competitive. So, it’s no wonder that most growing businesses today are busy hustling (day in and day out), trying to find that competitive edge. While putting in the extra effort does pay off, more often than not, businesses forget the importance of taking care of the key basics first.
Implementing policies and procedures specific to your company is one such basic! Crucial and often overlooked. Many believe that policies and procedures are not used much or even needed. They are often reluctant to invest their time and money into something that is not directly adding up to the bottom line.
Until something of critical importance appears and an action plan is needed. It is usually at this time when one looks back and realizes the need for workplace policies and procedures and understands how crucial they are.
- When an employee is hired it is important he/she understand the correct work processes to ensure service and product quality as well as understand his/her duties
- Health & Safety – this is crucial for roles where employees are required to handle potentially dangerous equipment
- Ensure employee accountability and gauge performance measures
- Code of conduct and Code of Ethics within the organization set up
- Data protection, use of company equipment
- Maintain consistency and manage expectations within each department and throughout the company
- Serves as a guide for recording, training, processes, strategies and a mouthpiece for company values
- Increased value in the sale of a business
Here are three vital reasons why you should invest in creating and implementing policies and procedures and keep them current for your business.
1. Translate Your Vision into Corporate Operations
Structured policies and procedures link your business vision with corporate operations. With a set of standard company policies and procedures in place, all the stakeholders, be they, employees, customers or investors realize the vision, mission and ethical standpoint of the business.
When everybody has a clear understanding of your corporate vision it becomes easier for them to align day to day operations with it.
2. Transparent Employee Relation & Improved Work Environment
Values come to life through employee actions.
With up-to-date policies and procedures, employees have the essential resource to provide them with a clear understanding of what is expected of them; goals, company standards, consistency, complaint processes, what is encouraged in the organization and what is not acceptable. This knowledge assists the employees in their everyday work life and enhance their relationship with their co-workers and employer.
Well written policies and procedure manual(s) are the guide for managers to direct operations without constant intervention and employees are provided the freedom to make decisions based on the companies’ processes.
By implementing and communicating employee centric policies and procedures, businesses can create a friendlier, pleasant and therefore more productive work place.
3. Foster Investor Relations
Oftentimes, investors gauge a company by not only its profit margin, but also its management practices.
Does the company follow transparent employee policies? Does it have a system in place to manage tough situations? Does the management policy foster productivity and growth?
These are the questions investors are often looking at.
With your set of company policies and procedures in place, investors would have transparent answers, a manual really to how your company operates.
Creating and formulating policies and procedures is well worth investment. It represents the structure and operations of each department, consistency throughout the company, employee training, productivity, health and safety and corporate goals and values. This valuable resource created specifically for your company demonstrates professionalism and preparedness. Don’t wait for a crisis to knock on your doors, take the necessary steps to develop and implement policies and procedures for your business.
Policies and procedures must be constructed in clear, concise language for employees and management to easily follow and understand.