8 Basic HR Policies Every Non Profit Organization Must Have

In order to be successful in today’s environment, organizations need to demonstrate compliance with the laws but even more importantly, they must be able to make the most of their resources in order to achieve their missions. There are a variety of policies that are helpful to have in place, not only to avoid legal challenges, but also to enhance the potential of success.

Naturally, basics like an Equal Employment Opportunity Policy are essential not only for compliance with anti-discrimination laws, but to attract good candidates who want an environment free from bias. The policy should contain language that indicates a commitment to select, retain, promote, and terminate employees based solely on the individual’s qualifications, abilities, and work performance. It is should also address the goal to provide equal employment opportunity to all applicants and employees in all aspects of employer/employee relations without regard to race, color, sex, sexual orientation, national origin, religion, marital status, veteran status, age, ancestry, and mental or physical handicaps. Further, the policy should affect decisions including, but not limited to, recruiting, hiring, compensation, benefits, training, promotions or demotions, transfers, discipline, lay-offs, terminations and leaves of absence, and any other term, condition of employment or privileges.

Another legal dispute to avoid is in the area of employee classifications. It is imperative that your organization’s policy on designating exemption status (whether they are salaried or hourly) is based on the duties and responsibilities of their position, as defined by the Fair Labor Standards Act.

A good harassment policy is essential to the operation of a workplace free from hostility or offensive behavior. This can include a policy on the use of electronic mail (e-mail) if your organization uses it. Because it is so easy to use email for inappropriate or unprofessional purposes, including this in your harassment policy is important.

Having a carefully considered Substance Abuse Policy can help prevent many workplace problems, including attendance problems, injuries, decreased productivity and potential violence.

It is useful to put a Problem Resolution Process in place so that when employees have issues between them, or between them and their supervisors, they can turn to a clearly defined channel to resolve the challenge. It helps employees feel more empowered, but it also provides a means to minimize disputes when everybody knows there is a venue in which to work it out. This policy can also include an approach to disciplinary issues or performance problems.

Professional Standards provide another arena where defined expectations really help avoid difficulties. If your employees do not know what is expected of them, they will most certainly default to the path of least resistance, or to what they see others do. Your policy should include the idea that fundamental to all of our policies is a foundation of integrity, honesty, and sound business practices.

Finally, creating a system for Performance Planning and Appraisal is critical to the overall success of your organization. If you have not thought through what you want employees to achieve, you can’t expect them to get the job done for you. It is essential to define goals and objectives you want to accomplish, then take that information and distribute it to the departmental or individual employee levels to improve your probability of meeting those goals. Once this is done, you can attach performance levels that constitute satisfactory, needs improvement or unsatisfactory standards. The more information the employees have about what you need from them, the more likely they are to rise to the occasion and give your company the productivity it needs to succeed.

Anne Caldwell is President and Founder of Outsourcing Solutions (www.azoutsource.com), a human resource strategy firm committed to helping small and medium sized businesses succeed. She is also the author of “Communicating with Your Employees,” published by Creative Alternatives, which will be available summer, 2007. She can be reached at 602.228.9191 or pres@azoutsource.com.

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