How to Create an HR Policy in 2025 (Complete Guide)

Are you looking for how to create an HR policy?

If you are an HR manager, a small business owner, or part of a growing organization, you may be wondering how to create an effective HR policy. 

This policy should meet employment laws, reflect your company culture, and support your teams. 

At TROIS Collective, we know that making formal policies can be challenging, especially if your HR team is small. 

That’s why we have put together this step-by-step guide.

What is an HR Policy?

An HR policy is a set of rules that explains how a company manages different aspects of the employee experience. 

These rules cover sourcing, hiring, pay, workers' compensation, behavior, performance expectations, and termination processes. 

HR policies are important because they help create a strong company culture. 

If you are a junior or senior in HR, you should know how to create an HR policy. 

This policy sets clear expectations, keeps everything consistent, and helps prevent problems in the future.

Why Are HR Policies Important?

Creating HR policies helps organizations in several important ways.

First, it ensures that the company follows the law. Depending on your company's size or your HR department's experience, this can be complex.

Second, it reduces the risk of legal problems and workplace disputes

Clear policies also lead to better communication between departments and support fair decision-making.

Lastly, it clarifies what is expected from both employees and management.

If you’re unsure where to begin, TROIS Collective offers part-time HR services, compliance reviews, and help with policy implementation.

Step-by-Step: How to Create an HR Policy

Let’s look at how to create an HR policy that suits your organization’s size, culture, and legal requirements.

1. Identify the need

Start by looking at current issues. 

Do employees understand your paid time off (PTO) policy? Are there common misunderstandings during onboarding? 

Are you getting ready for an HR audit?

By identifying ongoing problems or possible risks, you can decide which policies to create first.

2. Research legal requirements 

Every HR policy must follow labor laws

Review the employment standards that apply to your business, such as minimum wage, working hours, and paid leave. You should also check safety regulations.

Make sure to also look at:

If your business is in Canada, follow both federal and provincial laws.

3. Consult stakeholders

Creating HR policies is a team effort. 

It involves your HR team (if you have one), managers who work closely with employees, legal or compliance advisors, and employees themselves through surveys or focus groups.

4. Draft the policy clearly  

A good HR policy should use simple language that everyone can understand. 

It should include:

  • Purpose: Explain why the policy is needed. 
  • Scope: Identify who is affected by the policy.  
  • Definitions: Clarify any specific terms used.  
  • Policy statements: Describe the rules and expectations.  
  • Procedures: Provide steps for employees or managers to follow.  
  • Responsibilities: Specify who is responsible for enforcing the policy.  
  • Review date: Indicate when the policy will be reviewed.  

For example, instead of saying “Employees shall adhere to temporal constraints of absenteeism,” say “Employees must notify their manager if they will be absent or late for work.”

5. Review with Legal or HR Experts

Having a legal or HR expert review your draft is important for managing risks. 

Think about working with an HR business partner like TROIS Collective

They can help ensure you follow the law and bring practical HR experience and strategy.

6. Communicate the policy

Once you finalize your new policy, share it through employee handbooks, the internal HR portal, new hire onboarding kits, and company-wide meetings or training sessions.

It is important to ensure that employees know where to find the policy and who to ask if they have questions.

7. Train Managers and supervisors

The success of the policy depends on how well it is enforced. 

Train managers to explain how to apply the policy and review disciplinary actions and performance discussions.  

Also, discuss “what-if” scenarios.

8. Implement and monitor

Put the policy into action and track the results:  

  • Are there fewer complaints or incidents?  
  • Are managers enforcing the policy consistently?  
  • Do employees understand the expectations?  

Policies should evolve, so gather feedback and update them as your company grows or laws change.  

9. Schedule policy reviews

Review all HR policies at least once a year. 

Update them when laws change, when your business model changes (for example, moving to remote work), when you expand to new areas, or when employee feedback shows gaps or confusion. 

For better efficiency, pair policy reviews with your annual HR audit.

Examples of HR Policies

If you're looking to start developing policies for your business, here are the essential ones you should create:  

  • Code of conduct  
  • Anti-Harassment and discrimination policy  
  • Time off and leave policy (including vacation, sick Days, and parental leave)  
  • Remote work policy  
  • Performance management and discipline policy  
  • Data privacy and confidentiality policy  
  • Workplace health and safety policy  

In Summary

Now you know how to create an HR policy, keep in mind that creating HR policies is not just about completing tasks. 

It’s about creating a workplace where everyone knows what is expected, feels respected, and stays engaged.

Whether you need one policy or a complete HR framework, TROIS Collective provides practical solutions without the need for a full-time team.

Are you ready to get started? Contact us.