How to Prepare an Internal Employee Handbook?

Developing an internal handbook of procedures related to employee affairs may not be a priority for you, especially if your business is a startup or small business, but you’ll come to realize how important these procedures are in building employees’ trust in the company and ensuring clarity regarding its internal policies related to their affairs. In this article, we’ll highlight the most important steps for creating an internal handbook of employee-related policies and procedures. 

What are HR Policies and Procedures? 

Human resources policies are formal rules and guidelines companies use to manage employees. Human resources procedures, on the other hand, are step-by-step instructions that outline the actions required to comply with these policies. Defining these policies and procedures is a core function of human resources management. 

Human resources policies cover a wide range of different aspects of human resources management, such as: 

• Hiring
• Appearance and Appropriate Dress
• Overtime Pay
• Leave
• Annual and sick leave
• Performance Evaluation 

The Purpose of Developing Human Resources Policies and Procedures

The benefits of relying on clear and comprehensive policies and procedures will help you achieve the following: 

• Human Resources Policies Provide Legal Protection for Your Business
• Communicate your workplace policies to employees in a transparent and clear manner
• Set expectations for employees regarding their career development
• Help you address employee complaints and disputes
• Speed up decision-making on various human resources issues
• Help ensure that all employees are treated equally and fairly
• It helps create a safe and healthy work environment

How to Write Human Resources Policies and Procedures

Policy documents typically vary by company, its internal regulations, and its operating procedures; however, a common basic structure for drafting and writing policies provides a foundation any company can use for further development. 

This basic framework includes the following components: 

• File Name
• Effective Date of the File (and dates of any revisions or updates)
• Name of the person responsible for updating the document and answering questions about it
• Purpose of the document (optional)
• Definitions of specific terms used in the document
• Main File Statement
• Scope and applicability (including permitted exceptions)

An important aspect of preparing and adopting a company policy regarding employee affairs is ensuring that the policy is clearly defined and communicated to employees, and that each 

The list of contents that should be included in your employee policy may vary depending on the company’s size, specialty, industry, and location. However, there are certain points that are typically included in any employee policy: 

Code of Conduct 

The code of conduct outlines the company’s behavioral expectations for employees and the standards they must follow in their work. It includes all or some of the following:

• Dress and Appearance
• Use of Social Media
• Discipline Work Hours
• Bullying and Rules for Interacting with Coworkers 

An employee policy may include: 

Introduction to the Company and Its Main Structure 

The first section of the document should introduce the company, its activities, field of operation, internal departments, and administrative structure. This provides employees with a comprehensive overview of the company and its leadership. This section may also include key points regarding the company’s goals, vision, and mission. 

Hiring Policy

A human resources policy is rarely issued without including a recruitment policy. The recruitment policy typically outlines candidate selection criteria and defines the process for preparing new employees for their roles. If you have an onboarding program, you can include it in this policy.

Termination of Employment

Termination of employment is an important topic to address in a personnel policy and may include how an employee’s employment ends and the procedures followed in various termination scenarios. For example, include the procedure for an employee to submit a resignation, the required notice period, and other key points about termination procedures and policies. 

Working Hours and Overtime Policy

Essential information that must be included in personnel policies and procedures includes the number of official working hours and the company’s policy on calculating overtime for employees. It is important for the personnel policy to specify the approved daily working hours and, if working hours are flexible, to clarify the policy for calculating clock-in and clock-out and the procedure for notifying a supervisor in the event of any disputes regarding the calculation of working hours. 

Performance Evaluation and Promotion Policy

One of the most important issues for employees is understanding how the company evaluates performance, the criteria used, and the company’s general policy on promotions. 

Read more about Jisr’s performance evaluation feature in this article

Expense Policy

The expense policy covers how expenses paid from an employee's own account are calculated, submitted, and approved for reimbursement, and how employees request reimbursement for company-related expenses. 

Bonuses, Commissions, and Compensation Policy 

One of the most important elements that a personnel policy must include is details of the system of bonuses, commissions, and compensation received by employees, as well as the employee’s share of deals secured for the company and other related matters.  Clarifying these points is crucial to demonstrating the company’s transparency and may be a significant advantage for new employees and a key incentive for productivity and retention. 

Leave Policy 

Personnel policies and procedures must address weekly and annual leave, holiday leave, and other types of leave. It must also include the compensation employees receive during these leave periods; for example, some companies provide annual tickets to non-Saudi employees. Meanwhile, labor regulations require employers to allow employees to receive their annual leave pay in advance. It is also important to outline the annual leave request procedures and the steps employees must follow. Covering these points helps employees understand their rights and obligations to the company. 

These steps will help you organize and create your own employee handbook, and you can add to its main points based on your company’s needs and internal regulations. 

Use Jisr to manage your employees and help them comply with your human resources policies.