All you need to know about HR Policy: Definition and challenges

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HR policy is an essential pillar in the smooth running of a company. In a context where 88% of young employees consider it essential to be aligned with corporate cultureunderstanding, structuring and defining a coherent HR policy is becoming essential.

Here’s our complete guide to understanding what an HR policy is, how to implement it, and why it’s essential to an organization’s performance.

HR policy: definition

HR (human resources) policy refers to all the rules, practices and strategic orientations put in place by a company to effectively manage its human capital. It covers areas such as recruitment, compensation, training, career management, working conditions and labor relations.

An effective HR policy aims to align employees’ objectives with those of the company, thus promoting overall performance and well-being at work.

HR policy should not be seen as a separate strategy, but rather as an essential component of performance. To reap the full benefits, in terms of both team well-being and overall development, this medium- and long-term HR strategy must be aligned with the company’s overall policy. It must be applied in line with the company’s values, culture and identity.

By guaranteeing the best possible operation of the business and effectively complementing the company’s HR strategy, the HR policy will facilitate the day-to-day work of managers and/or human resources officers.

 

The difference between HR policy and HR strategy

Often confused, HR strategy and HR policy are as different as they are complementary.

Reflecting the company’s ethical charter, the HR strategy aims to anticipate potential changes that the company may face. HR strategy is truly long-term in nature, encompassing all the strategic orientations to be implemented to optimize results and performance. In order to best anticipate the company’s specific hazards and problems, strategy takes into account a number of related strategic factors:

  • Business sector ;
  • The economic environment ;
  • Political and social movements;
  • The company’s needs in different contexts (employee professional development, career management, etc.).

HR policy, on the other hand, is the concrete application of the objectives defined by HR strategy. The two are therefore inseparable if we are to put into practice what we have worked on and predefined upstream.

According to an IFOP study carried out in July 2024, 83% of young working people feel that their current job matches their expectations, underlining the importance of an HR policy aligned with employee aspirations.

To put it plainly: HR strategy defines direction, HR policy structures action.

Why define a human resources policy? Key issues

The HR policy ensures the proper administrative management of both staff and the company itself. Understanding the issues surrounding HR policy can make all the difference!

One of the most important features of an HR policy is its flexibility. HR policy can be adapted to the many issues facing a company, which are themselves likely to evolve over time. Between changes in conventions, legislation and socio-economic contexts, HR policy must always know how to refocus on the human factor to deal with these many changes.

To achieve this, the HR director or human resources manager needs to stay in touch with employees to ensure the company’s long-term viability, the retention of talent and forward-looking job management. The stakes are therefore colossal for HR professionals, who need to ensure that HR policy is perfectly aligned with corporate strategy, in order to best support current and future transitions.

In short, defining a human resources policy is essential for :

  • Structure HR practices in a consistent manner;
  • Guarantee equal treatment for all employees;
  • Promote talent retention and internal mobility;
  • Adapting HR to economic, social and legislative challenges;
  • Strengthen employer brand and corporate culture.

A company’s HR policy must be flexible enough to adapt to changes (conventions, laws, work environment) while remaining focused on people.

How to implement an HR policy: our step-by-step guide to success

Deploying an HR policy

To implement an HR policy in line with the company’s culture and development objectives, it is drawn up in direct collaboration with the HR department, the Human Resources Director or the HR Manager. In order to achieve this, we need to focus on a number of key areas:

  • Administrative management: efficient, secure and ideally centralized. This includes managing payroll, complying with legal obligations and ensuring employee health and safety.
  • Implementing a recruitment policy: this not only concerns the process of recruiting new talent, but also the integration process. Of course, the measures taken must attract new employees, but they must also retain existing ones.
  • Deployment of an individual follow-up system for each employee: in addition to the introduction of individual annual interviews, this follow-up system makes it possible to assess the quality of the company’s policy. In this way, potential shortcomings can be identified and rectified as quickly as possible, by listening to employees’ needs and managers’ feedback. The employee’s quality of working life and professional development needs must be taken into account to ensure optimal career management.
  • Managing human relations: as far as human resources are concerned, it is also vital to ensure the quality of social dialogue and human relations within the company. By developing and promoting internal communication around events, it’s easier to familiarize employees with the corporate culture and its deployment.

 

Managing human resources as part of an HR policy involves a number of aspects that are important to develop in order to maximize returns.

 

Improve an existing HR policy

As part of a corporate project, HR policy and strategy play a key role. To improve your human resources policy, you can provide training for your HR department to help it implement an effective and ambitious policy.

Thanks to its flexibility and adaptability, the continuous improvement of HR policy can follow the following lines:

  • Centralize HR management tools for greater efficiency in human resources management;
  • Simplify and harmonize compensation policy;
  • Develop training programs tailored to employee needs;
  • Implement concrete actions in favor of professional equality and diversity;
  • Developing well-being at work;
  • Encourage internal mobility and career development.

According to a survey carried out by CESI and Ipsos in 2024, 74% of young working people believe it is important for a company’s values to be in line with their own, underlining the importance of an HR policy consistent with the company’s culture.

Conclusion: an HR policy for a high-performance company

Aligning a high-quality HR policy with your company’s culture has many benefits that should not be overlooked. From employee professional fulfillment to guaranteeing your values and managing your company’s organization, HR policy is your operational lever for successful business development!

A well-designed human resources policy is a powerful lever for transformation. It strengthens the alignment between employees and strategic objectives.

Adopting a clear HR policy aligned with the company’s culture ensures sustainable growth and better talent retention.

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THE EXPERT'S OPINION

Philippe – HR Director at Boost’RH Groupe

For our expert, HR strategy and policies must enable the company to progress in a serene and motivating context, linking performance with social responsibility.

To do this, the HR Director will need to draw on the company’s 3 or 5-year development plan, in order to anticipate and prepare for major challenges (creation of subsidiaries, takeovers, mergers, changes in activity, creation of new services or products, relocation, conquest of new markets or countries, downsizing, concentration of service offerings, etc.).

This future plan will form the basis of an HR strategy that corresponds to the company’s needs, and which will be translated into one or more HR policies.

HR policy, as an expression of HR strategy, must respond to market constraints, legal requirements and the company’s long-term viability, as well as to the wishes and expectations of employees.

For example, we can mention an employment or recruitment policy to adjust the workforce and, above all, the skills required to meet the company’s future needs. But also a compensation policy to optimize employees’ purchasing power and control payroll costs.

As a result, we also need to define a skills development and internal promotion policy that encourages employee involvement and motivation.

All these tools, processes, rules and actions will be applied with the sole aim of ensuring the long-term future of the company and its jobs, and attracting, integrating, training and motivating the best employees.

It’s a subtle balance to strike between top management’s desire to develop the company and recognition of employees’ efforts.

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To sum up

En 3 Questions

  • What is an HR policy?

    An HR policy is the foundation of a company’s human resources management. This set of rules is designed to organize internal HR management. It covers many areas, including recruitment, work organization, remuneration and training.

  • Why is an HR policy important?

    Thanks to an HR policy, companies can focus on a number of key areas, such as:

    – Company organization;

    – Employee development;

    – Support for managers;

    – Ensuring well-being in the workplace and respect for corporate values.

  • Is it possible to improve an existing HR policy?

    Yes, by adopting the right methods. Together with HR strategy, HR policy is essential for positive and effective action within the company. It is then possible to improve certain aspects of the existing policy:

    – Centralize HR management;

    – Train employees in digital technology to help them carry out their missions;

    – Focus on well-being at work;

    – Promoting the professional integration of people with disabilities;

    – Ensure the development of a simplified compensation policy.