Why are policies and procedures important?

It can seem like an unnecessary expense for a small business.  A tedious task that takes up valuable time and effort and doesn’t appear to offer any real advantage in business. “I only have 4 staff and they all perform well, and business is running smoothly. Why do I need to bother?” My response to these types of statements is; “It isn’t a problem until it becomes a problem.” I agree that there are far more valuable tasks a business owner should commit their time to which is why outsourcing is the way to go. If you want it done quickly and painlessly, then engage an expert.

The purpose of policies is to ensure you meet all legal obligations contained in State and Commonwealth employment legislation and industrial instruments. The policies provide a framework that protects both the employee and the employer from legal disputes. Good policies not only meet minimum legislative requirements, they also establish boundaries, guidelines and best practice for acceptable behaviour at your business. When your staff are clear of what the expectations are, it is less likely they will make incorrect interpretations of what you want and expect.

When we provide a consistent framework for how we want to operate our business through procedures, everything runs more smoothly. There is better collaboration, less conflict and often greater productivity. Procedures should help to streamline a process, ensure things are done in the most efficient and cost-effective method by everyone. People inherently want to do things “their way” and without proper guidance things may lack consistency and accuracy. In order to foster a good team, you need to set out the game plan and then, guide them to victory.

When we take the time to implement policies and procedures, we avoid risk. The risk is imposed upon our business when and if there is a dispute and a fair and reasonable process is not followed. Whilst no business owner sets out to treat their employees unfairly, without policies to guide them, it is easily done and can lead to stress,  damaged reputations and financial hardship.

If you would like further information on how to get your business in order, we will provide a free consultation at no cost to you. Please contact us via our schedule a consultation on our website.