Imagine this: a growing business with a strong team and solid goals suddenly finds itself tangled in a messy web of legal confusion after a former employee claims they were wrongfully dismissed. There's no paper trail, no clear policy, and no written process to point to. It's not just a headache—it's a financial liability.
According to the Canadian Centre for Occupational Health and Safety, employment-related legal disputes can cost small and medium businesses tens of thousands of dollars in legal fees and operational disruptions. Meanwhile, in the US, the Equal Employment Opportunity Commission reported average settlements for employment discrimination lawsuits ranging from $125,000 to $160,000, highlighting the serious financial risks of missing or outdated HR policies and procedures.
Moral of the story: outdated or missing HR policies and procedures can cost your business valuable time, money, and morale. From compliance violations to unclear expectations, the consequences can be pretty significant. Enter PurelyHR. Helping businesses easily build, manage, and update HR policies that support their people and their bottom line is our labour of love.
Think of HR policies and procedures as the official guidelines that shape your workplace—from how vacation requests are handled to how conflicts are resolved. Policies are what (the rule or standard), while procedures are the how (the steps taken to apply or enforce that policy). When you put them together, they offer a crucial framework for consistency, fairness, and legal compliance in your workplace.
Without these structures in place, businesses often face:
Luckily, these challenges are all fixable. Let's have a look at the top 9 HR policies and procedures that can positively transform your business.
Think of it as your company's bible—only shorter and less intimidating. An employee handbook compiles key policies and sets expectations for behavior, communication, and workplace culture. It's often the first place employees look when they have questions—and the first thing your business needs in case of legal trouble. Every business needs one.
Time off is essential for employee well-being—but inconsistent handling leads to frustration fast. A clear leave policy defines how vacation, sick days, and unpaid time off are managed. Bonus points if it includes rules for parental or bereavement leave, too.
In the age of hybrid teams, your business absolutely needs guidelines for remote work, flexible hours, and punctuality. This policy helps set boundaries, manage expectations, and prevent burnout—especially when "the office" is your employee's couch.
Every employee deserves a safe and respectful workplace. A solid code of conduct defines acceptable behavior, while an anti-harassment policy shows your commitment to accountability and inclusion. It's also a must for compliance with labor laws.
Regular feedback improves productivity and engagement. A performance review procedure sets clear timelines and criteria for evaluations—so no one's left wondering how they're doing or why they didn't get that raise.
The first 90 days are critical. A structured onboarding process helps new hires feel welcome, understand their role, and get up to speed faster. It can include everything from system logins to shadowing opportunities to your company's inspiring origin story.
Whether you run a warehouse or a web-based startup, health and safety matter. A documented policy ensures you're prepared for emergencies, understand your legal obligations, and can act quickly when something goes wrong.
Conflict happens—but it shouldn't derail your workplace. A clear process for handling complaints and misconduct helps maintain fairness and trust. This is especially crucial for protecting your business if an issue escalates.
Money matters. But so do perks—sometimes more so. A well-documented compensation and benefits policy outlines how salaries are determined, when raises happen, and what benefits employees can count on—like health insurance, bonuses, or professional development stipends. It's key for transparency, retention, and staying competitive.
Each of these policies supports smoother operations, stronger employee relations, and a healthier company culture. That's why investing time in creating them now saves time (and stress) later.
So, how do you go from scribbled notes and inconsistent practices to well-documented, useful guidelines? Consider starting with these steps:
Look at your team size, structure, and any recent issues. Are employees confused about time off? Struggling with hybrid schedules? Start there.
Your policies should reflect your values and how your team operates—not just what's legally required. That means writing in a tone that fits your brand and considering how rules will be received by your staff.
Laws vary by province or state, so be sure you're aligned with local labor standards. This is especially important for wages, overtime, leave, and harassment policies.
Getting feedback during the drafting stage increases buy-in and uncovers potential blind spots. Employees are more likely to respect policies they helped shape.
A 40-page PDF no one reads is no better than no policy at all. Use plain language, clear formatting, and logical organization.
A policy written five years ago might be obsolete today. Set a schedule for reviewing and updating your documents.
If all this sounds like a lot of work you don't have time for, here's the extra good news—you don't have to do it all manually.
With tools like PurelyHR, creating, sharing, and maintaining your HR policies and procedures becomes a whole lot easier. Our platform helps you store everything in one place, track acknowledgments, and make updates in real-time. Whether you're starting from scratch or updating old documents, we give you the structure and support to get it right.
HR policies and procedures aren't just checkboxes on a compliance list—they're the foundation of a productive, fair, and resilient workplace. They help you run your business with clarity and confidence, and they let your team know that you've got their backs.
Need a hand getting started? Start your 21-day free trial or book a demo today—we'll help you build the backbone your business deserves.