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Johnny Taylor: How to establish structured employee policies and systems in a company

How to establish structured employee policies and systems in a company
Thought Leader: Johnny Taylor
January 14, 2025
Source: USA Today

Johnny C. Taylor Jr. tackles your human resources questions as part of a series for USA TODAY. Taylor is president and CEO of the Society for Human Resource Management, the world’s largest HR professional society and author of “Reset: A Leader’s Guide to Work in an Age of Upheaval.”

Have a question? Submit it here.

Question: I was hired as an HR manager at a small construction company, where they have made policy decisions without an HR presence for almost five years. Everything has always been addressed on a case-by-case basis, so the need for policies in upper management’s eyes is nonexistent. How do I show upper management that having up-to-date policies and systems is better than treating employee issues and questions case-by-case? ‒ Ellen

Answer: Congratulations on stepping into your new role! Transitioning a company from case-by-case management to one with structured policies can be challenging, but it’s also an opportunity to create lasting, positive change. Here’s how you can approach the situation most effectively:

Emphasize the value of consistency.

◾ Fairness and transparency: Policies ensure fair and consistent treatment, fostering trust and morale. For example, clear policies on promotions or disciplinary actions reduce perceptions of favoritism.

◾ Scalability: As the company grows, addressing issues on a case-by-case basis becomes unmanageable. Having policies in place now avoids chaos later and provides a solid foundation for scaling operations.

Highlight legal and financial protection.

◾ Compliance: Point out that clear policies help the company stay compliant with labor laws and reduce risks related to claims of discrimination, harassment, or wrongful termination. Share examples of potential costs for noncompliance, such as legal fees, fines, or reputational damage.

◾ Documentation: Policies create a paper trail that can protect the company in disputes or audits.

Present policies as time-savers.

◾ Efficiency: Addressing each issue individually takes time and resources. Policies act as a guide, enabling quicker decisions and freeing up leadership for more high-level and strategic tasks.

◾ Streamlined onboarding: Policies make understanding expectations easier for new employees, reducing onboarding time and confusion.

Use data and examples.

◾ Real-life scenarios: Share examples of how other companies in the construction industry benefit from clear policies. Include anecdotes about avoiding costly mistakes or improving employee retention.

◾ Return on investment of updated systems: For systems like an HRIS (Human Resource Information System), provide data showing ROI and long-term savings. For instance, you can mention that modern HR systems improve efficiency, reduce errors, and enhance employee experience, all contributing to better business outcomes.

Take a collaborative approach.

◾ Involve leadership: Engage upper management by asking for their input on priorities and goals. Frame policies as tools to achieve organizational objectives rather than constraints.

◾ Pilot programs: Suggest rolling out one or two key policies first ‒ perhaps related to safety or performance management ‒ to demonstrate their impact before expanding further.

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Provide visuals and documentation.

◾ Create a comparison chart: Current, case-by-case approach vs. policy-driven approach. Highlight the benefits in terms of fairness, legal compliance, time savings, and employee satisfaction.

◾ Use presentations or reports to clearly outline your recommendations, including the potential risks of not having policies in place.

By positioning policies and systems as tools to enhance efficiency, protect the company, and support growth, you’re more likely to gain buy-in from leadership. They hired you for your HR expertise ‒ confidently share your insights and show how these changes align with the company’s long-term success. Highlight how having effective workplace strategies can empower business productivity and employee performance.

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