In the constant commotion of managing a small business, it's easy to overlook the importance of policy implementation.

Policies might seem bureaucratic or unnecessary, but they play a crucial role in the success and sustainability of any business, especially small ones that want to grow or businesses that want to change how they operate to improve or strengthen their culture.

As a small business, we understand how difficult it can be to create and upkeep policies, and we are in the process of building ours now, so we thought we could share some of the reasons why it is so important to put time and effort into them.

Here are five reasons why policy matters:

1. Consistency and Fairness

Policies provide a framework for consistent decision-making. Whether it's handling employee grievances or addressing customer complaints, having clear policies ensures that everyone is treated fairly and equally and that there is a considered and well documented reference point for decision making.

Consistency breeds trust among employees, customers and stakeholders. When individuals know what to expect, they're more likely to feel secure in their interactions with your business. For example, if you advertise your feedback and complaints policy, people will be more likely to provide feedback or share complaints which gives you an opportunity to address a problem or concern.

2. Legal Compliance

Small businesses often operate in a complex regulatory and legal environment, whether its managing privacy and confidentiality of your client's information, managing the safety of your team and visitors to your workplaces or other regulations related to food, reporting, record keeping or human resources.

Policies help ensure compliance with human resources and industrial relations laws, safety regulations, and other legal requirements.

By creating and adhering to your own business policies, you may be able to reduce or remove the risk of costly fines, lawsuits, and reputational damage associated with non-compliance.

3. Risk Management

Policies serve as a tool to safeguard against a range of potential risks and liabilities. Whether it's cybersecurity protocols to protect sensitive data or safety procedures to prevent workplace accidents, policies can help mitigate risks before they escalate.

Small businesses with well-defined policies are better equipped to anticipate and address challenges, minimising disruptions to operations and preserving business continuity by having a reference point for decision making by all of your team.

4. Employee Guidance and Development:

Policies provide employees with clear guidelines on expectations, responsibilities, and conduct. From onboarding processes to performance evaluations, policies outline the standards of behaviour and performance that employees are expected to uphold.

Policies can serve as valuable tools for employee development and training. By providing clear information, employees can use policies enhance their knowledge and understanding of the business, support effective leadership through decision making and ultimately support career advancement.  Policies can empower employees to reach their full potential within the organisation and can help you to identify skills and aptitudes in those that refer to them and use them resourcefully.

5. Cultural Alignment:

Policies play a crucial role in shaping organisational culture. Policies can clearly capture and communicate the values, priorities, and vision of the business, guiding behaviour and fostering a sense of community among employees.

Small businesses can use policies to cultivate a positive and inclusive work environment, where diversity is celebrated, and mutual respect is prioritised. This, in turn, enhances employee morale, productivity, and retention.

Some examples of policies you can use to build your organisational culture are:

-              equity, diversity and/or inclusion policies

-              recruitment policies

-              staff professional development/growth policies

-              performance management policies

-              procurement /purchasing policies

-              delegations' or decision-making policy or frameworks

-              customer service/experience policies

-              feedback and complaints policies

We know that policies can be very time and effort consuming to create for a small business owner, but they are essential for the effective functioning of a business and workforce especially one that wants to grow or become more sustainable.

From promoting fairness and compliance to managing risks and nurturing talent, policies provide the foundation upon which businesses can thrive and grow.

By investing time and effort in developing and implementing robust policies, small businesses can build a resilient framework for success in an ever-changing business landscape.

At OTSPC, we offer policy writing services to support you to shape and guide your business and your team in a sustainable and compliant way.

If you would like to talk about how policies and procedures can support your business to grow or change, make an appointment to talk to us about how we can help.