This management tool is optional? Think again!

Some of us may have come across the quote by Dave Bookbinder about how “people are an organisation’s most valuable asset and the key to its success”.?Yet, the sentiment that 'people are often the most overlooked asset of an organisation' is also prevalent. These two statements do not sit comfortably together, though there is inherent truth in both.

When it comes to taking care of your most valuable asset (although I prefer the term resource), the challenges are undoubtedly considerable. The role of the manager in this regard, can have the most profound impact on an employee — in terms of their experience in the workplace. In striving to achieve organisational goals through their people, the daily actions of managers have the potential to make or break an employee’s performance, motivation and tenure at a company. One of the tools that can empower a manager to be more effective in their role is the often overlooked and humble HR policy.?

HR policies are written guidelines that provide direction on how to handle a host of employment-related issues within an organisation.??They play a key role in supporting business strategy and in promoting fairness and consistency.?Without them, managers can be left floundering, making employment decisions that may or may not be aligned to those of their peers or to the culture and values of their organisation.

Depending on how well a policy is written, it can provide management with a roadmap for dealing with a range of issues from the simple day to day questions about annual leave and pay, to the more precarious ones about dealing with misconduct or poor performance. Having these written guidelines in place can speed up decision making when faced with a multitude of issues.?They also provide much needed??reassurance for managers wary of falling foul of ever-changing employment legislation.?A study by the Department for Businesses’ Employment Relations Research in the UK found that adopting formal employment practices reduces stress and anxiety in small business owners, in particular.?Arguably this would apply to any business that employs people where a lack of understanding of employment regulations would make any employer anxious about dealing with some aspects of hiring, managing and letting go of staff.

Policies are not only a source of support to management, however.??They can also provide employees with the sense of fairness and transparency that they seek from their employers.?They serve as a point of reference providing clarity on a variety of issues whilst defining acceptable standards of behaviour.?Knowing that there are clear rules that apply to everyone, provides an added sense of security to employees that can make them feel valued, respected and looked after by their employer.?This can positively impact employee motivation, organisational reputation and the ability to attract and retain talent (Chartered Institute of Personnel & Development).??

In the quest to determine whether all the ingredients are in place for effective people management, implementing a clear set of HR policies is a key first step. Ensuring the effective communication and implementation by line managers in particular is the crucial next step to their effectiveness.

HR policies are not a static tool that should be left to gather dust on a shelf.?They should be treated as a dynamic management tool that reflects the ever fluctuating legal landscape, the changing needs of the employee market, your employees and of your evolving corporate culture.?Following these key steps is a simple and effective way to signal to employees that they are indeed an organisation’s most valuable resource and key to their success.