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Human Resource Policy Assignment
Amad Syed
BUSI 642
Contemporary Issues in Human Resource Management
Dr. Amy Riederich
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Abstract
This paper uses the premise of a small business with 15-25 employees to define
critical policies that should be included in an employee handbook for a company of this size.
The policies described in the paper relate to discrimination, fraternization, employee benefits,
and confidentiality. All these areas are extremely important to consider as an issue in any of
those can lead to major problems for the company and its employees. For a small company
the employee handbook is an essential tool that should be utilized to its maximum extent to
avoid conflict and instill company values in all members of the team.
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Introduction
All successful companies, no matter the size, have a set of definitive values, culture,
and expectations. In a small company that has 15-25 employees, this is especially important
as all members will be working more closely when compared to a larger company. To help
lay out certain principles and expectations for employees, it is essential to develop an
employee handbook. Any business requires a large toolchest full of useful tools, the
employee handbook being one of them. This tool is used to not only pave a path for the
future of the company but to also to protect employees and lead them in the right direction,
proving to be a vital resource. Some overarching items the employee handbook should cover
include defining company culture, mission, and values; defining company policies and
expectations; explanation of company support and resources; showcase company benefits;
minimize risk and conflict (2021).
This paper will focus on four specific policies that should be included in a properly
formed employee handbook: discrimination, fraternization, employee benefits, and
confidentiality. Focusing on a small company with 15-25 employees, these four types of
policies can be crucial to lay out to avoid conflict in the present and future while maintaining
employee morale and satisfaction. The United States Equal Employment Opportunity
Commission (EEOC) lays out what laws apply to companies of various sizes. As an
examples, the EEOC states that for companies with 15 to 19 employees there are
discrimination laws covering race, color, religion, sex, national origin, disability, and genetic
information (“Small Business Requirements”, n.d.). These types of laws are important to
cover in the employee handbook to allow everyone to stay honest. In this paper the four
stated policies will be examined in relation to set laws and overall benefit provided to
members of a small company.
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Discrimination
Discrimination should never be welcome within the walls of any company. It is
crucial to include a policy regarding discrimination within an employee handbook for a
smaller company. Any form of discrimination amongst 15-25 people will have effects on all
employees not just the ones facing it due to the proximity of all the employees. With the
discrimination policy in place and laid out clearly in a handbook, employees should be aware
of proper conduct when it comes to this topic. Legally it is also important to include a
discrimination related policy as there are multiple laws that cover employees’ rights, and it is
the employer’s responsibility to ensure the rights are protected.
The National Conference of State Legislatures lists out pertinent laws tied to
discrimination: Title VII of the Civil Right Act of 1964, The Pregnancy Discrimination Act,
The Equal Pay Act of 1963, The Age Discrimination in Employment Act of 1967, and Title I
of the American with Disabilities Act of 1990 (Hentze, 2021). All of these laws cover items
listed by the EEOC that were previously mentioned. Title VII states that it is unlawful to
discriminate in any aspect of employment to include hiring/firing, compensation, promotion,
recruitment, use of facilities, retirement, and more. Under Title VII some discriminatory
practices that are states are “harassment on the basis of race, color, national origin, sex, or
religion” and “employment decisions based on stereotypes or assumptions about the abilities,
traits, or performance of individuals of a certain race, color, national origin, sex, or religion”
(“Laws Enforced by The Employment Litigation Section”, 2021). Including a statement
referencing Title VII in the employee handbook will protect both employee and employer
from committing discriminatory practices that are covered in the law.
The Americans with Disabilities Act falls under similar lines of effort to protect
individuals with disabilities within the workforce. United States Department of Labor states
that “Title I prohibits private employers, state and local governments, employment agencies
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and labor unions from discriminating against qualified individuals with disabilities in apply
for jobs, hiring, firing and job training” (“Americans with Disabilities Act”, n.d.). The civil
rights division of the United States Department of Justice has a primer for small business
which lays out specific guidelines for small businesses to follow when it comes to individuals
with disabilities. This primer includes guidelines such as the ADA requirement that small
businesses “remove architectural barriers in existing facilities when it is ‘readily achievable’
to do so” (“A Primer for Small Business”, 2010). Including material regarding ADA in an
employee handbook for a small company will help promote inclusivity as aa part of company
culture. Paul Bergeron of SHRM makes a case that empowering inclusive workplaces can be
at any level and that empowerment can begin with including policies from the very beginning
in an employee handbook (2022).
Fraternization
Smaller companies with 15-25 people, can see employees spending extended time
together and having daily interactions with each other. This can lead to friendly relationships
between coworkers which can be considered positive employee interaction, but once it
exceeds basic friendship and crosses over into romantic relationships, conflict may occur.
Therefore, a fraternization policy in the employee handbook is extremely important to
consider. Fraternization in the workplace is defined as “the interaction between coworkers
that extends beyond business relationships” (Leonard, 2018). The policy in the employee
handbook must be carefully worded as it cannot infringe on employee rights as it is tough to
legally write a “no dating” policy. As such, the policy in the employee handbook has to focus
on overall productivity and efficiency which can be negatively impacted by a relationship.
The policy that is put into the handbook must be able to address the situation when work
output starts to be affected in a negative manner (Leonard, 2018).
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Workplace romance that results from fraternization can have negative effects that start
to bleed into other aspect of the work environment and in some cases other policies laid out
in the employee handbook. “If a workplace romance breaks down, one partner’s attempts at
reconciliation may be perceived by the former partner as harassment” (Wilson, 2014). Sexual
harassment is a form of discrimination which, if the employer is found guilty of, the
employer can be held responsible for not protecting the employee. This ties in with the
previously mentioned policy relating to discrimination. It is pertinent to carefully layout all
the policies in the handbook as they can influence each other depending on the situation. In
terms of anti-fraternization policies, a company can adopt a policy that requires full
disclosure of relationships to limit the potential of favoritism, retaliation, and sexual-
harassment claims (Gurchiek, 2019).
Employee Benefits
SHRM defines employee benefits to include holidays/vacation, various types of leave,
paid time off, health/life insurance, retirement plans, training, education programs, and
service awards to name a few. For a company that only has 15-25 employees, not all these
benefits may be included, but it is important to clearly lay them out in the employee
handbook as to avoid confusion in the future. Today’s work environment is very dynamic
depending on the industry can have employees working via different mediums. Due to this,
employers “must be much more creative and flexible in the way [they] approach every aspect
of human resource management, including by crafting benefits that reflect the changing needs
and wants of today’s worker” (Jackson, 2016).
Ensuring employees understand their benefits leads to them accomplishing work
related tasks with a sense of security and overall, more productive outcomes. A company
with only 15-25 employees should be able to cater to benefits to each individual employee
and it is shown that “personalized benefits can contribute to employees’ sense of security and
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well-being” (Sammer, 2020). As the needs and preferences of the employees shift and
change, the employee handbook needs to be reviewed to effectively cater to the changes in
order to better fit the employees needs. “Ongoing communications and assessing both usage
and employee sentiment can help ensure that workers understand and value the benefits
they’re being offered” (Grensing-Pophal, 2022). Employees who understand their benefits
and see their needs being met, will be more productive and beneficial to a company,
especially a small one.
Confidentiality
In any business, confidentiality should be treated with the utmost importance. In a
small business with 15-25 people, it can be expected that all individuals will encounter
sensitive information such as social security numbers, credit card information, employee
salary information, and client lists. Thus, it is important to include a confidentiality statement
in the employee handbook, to include examples of confidential information. This section of
the employee handbook should also include consequences should there be any wrongful use
of the confidential data. Wrongful use can be the following: use of confidential information
to advance a personal agenda, disclosure of confidential information to persons outside the
company, or storage of copies of confidential documents on insecure devices (“Employee
Confidentiality Policy”, 2020).
On the flip side “a confidentiality policy should also describe the level of privacy
employees can expect relating to their own personal property and personal information”
(Halpern & Scrom, 2010). This is meant to include physical and intellectual property of
employees and the company. The employee handbook can also state that the employee must
sign a non-disclosure agreement at the start of employment. Having this policy in place
protects all members involved, especially in a small company where there can be blurred
lines in what is confidential and what is not due to the size.
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Conclusion
“High-impact HR teams have one staff person per 64 employees, spend more than the
average HR budget per employee, and employ a higher percentage of HR specialist than
more compliance-driven and basic HR organizations” (Noe, Hollenbeck, & Gerhart, 2021).
A small company of 15-25 people does not have the luxury of a “high-impact” human
resource team, let alone any HR team, so it must rely heavily on a well-formed employee
handbook. This employee handbook will be the foundation of an employee’s understanding
and execution of a company’s policies and vision. The core policies that must be included in
an employee handbook will be regarding discrimination, fraternization, employee benefits,
and confidentiality. Focusing on those four areas of policy will ensure the protection of both
the employees of the small company and the company itself. A small company will not have
the resources of larger firm so the employee handbook will prove to be a major tool in
maintaining a positive work environment and consistent growth. “Do your best to present
yourself to God as one approved, a worker who has no need to be ashamed, rightly handling
the word of truth” (ESV, 2016, 2 Timothy 2:15). Christians have the bible to guide them to
salvation and in the workplace, along with Christian values, one must adhere to employee
handbooks to protect oneself and be the best version of themselves in the workplace.
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