15 Must-Have Workplace Policies for Small Businesses

Picture this: you run a business where respect flows freely, your business interests are shielded, and every team member knows their role in driving the company forward.

Although this may sound like a pipedream, it’s completely doable! All it takes is creating a clear set of workplace policies, and we're here to show you how.

We’ve prepared a list of 15 workplace policies for small businesses that can help your team flourish and navigate both challenges and opportunities alike.

We’ll walk you through each policy, explaining:

• What it is
• Why it’s important
• Real-world examples to inspire your own

What are small business workplace policies?

Workplace policies are the ground rules that ensure your team is on track and treating each other right. They’re a way to set guardrails for every individual who interacts—from employees to vendors to customers—with your business on what’s acceptable (and what’s not). Depending on the policy, the guidelines included can help keep your employees safe, teach them how to handle essential topics like privacy, and document standard operating procedures around common topics like PTO and compensation. 

Here's a list of 15 workplace policies to consider implementing. You might find some in an employee handbook, while others are meant to be customer-facing. It’s important to understand that you likely won't need to include every single one just yet. To start, we suggest picking a few that are most relevant to your business type, size, and operations. 

Common workplace policies

• Cancellation policy
• Booking policy
• Return and refund policy
• Privacy policy
• Employee policies
  • Employee conduct
  • Equal opportunity
  • Social media
  • Paid time off (PTO)
  • Confidentiality
  • Health and safety
  • BYOD (bring your own device)
  • Compensation
  • Travel
  • Remote work 
  • Working hours

Why are workplace policies important for small businesses?

If you're not convinced you need workplace policies for your business just yet, let's walk through some of the reasons they're super important to have.

1. Ensure legal compliance:
   Small businesses often lack legal departments, so clear workplace policies ensure compliance with all necessary regulations and laws, reducing the risk of legal issues, fines, and lawsuits.
   
   
2. Provide equal and fair treatment:
   Solid policies guide consistent decision-making and behavior, promoting fairness and equity amongst your staff.
   
   
3. Manage risk:
   With limited resources, small businesses can't afford to deal with unnecessary issues or additional distractions. Policies act as preventive measures, stopping minor incidents from spiralling into major headaches.
   
   
4. Provide a roadmap:
   Policies help new hires quickly understand the company culture and expectations, allowing them to hit the ground running. They also provide clear guidelines for existing team members, ensuring everyone knows what to do in a given situation.
   
   
5. Protect your business:
   Whether it's confidential information, physical assets, or profit margins, small businesses have a lot to protect. Policies ensure that valuable resources are kept safe from both internal and external threats. For example, certain policies, such as cancellation policies, establish mutual accountability that’ll help protect your bottom line.
   
   For example, small businesses need to protect their profit margins. Certain policies, such as a cancelation policy, establish mutual accountability that’ll help protect your bottom line.
   
   
6. Facilitate growth:
   Growth is exciting but can also be challenging. Policies provide a roadmap for expansion, ensuring that as your business grows, it does so smoothly and without losing sight of its core values.
   
   
7. Build a positive work culture
   Happy employees make for a happy workplace! When your team feels valued and supported by transparent policies, it boosts morale, leading to higher motivation and engagement. Policies additionally set boundaries for acceptable behavior versus unacceptable behavior, ensuring your employees treat each other, and company resources, with respect.
   
   
8. Increase customer satisfaction
   Small businesses rely heavily on building strong relationships with customers. Clear policies demonstrate professionalism and reliability, earning customers’ trust and loyalty.
   
   
9. Streamline operations
   Efficiency is crucial for a small business with limited staff. Comprehensible policies help eliminate confusion and bottlenecks, allowing the team to focus on what really matters: growing the business!

15 Workplace policy examples for your small business

Cancellation policy

A cancellation policy outlines the rules and procedures for canceling reservations or services, including any associated fees or penalties.

Why is it important?

Life is unpredictable, and sometimes plans fall through. This policy ensures both your customers and business are treated fairly in case of a cancellation. It's all about providing clarity and peace of mind so everyone can book confidently, knowing what steps to take if plans unexpectedly change. 

Booking policy

A booking policy sets out the rules and steps for making reservations, covering aspects like deposits, confirmation methods, and how to make booking changes.

Why is it important?

This policy ensures a smooth and organized booking process, reducing confusion and disputes. It’ll help you manage your staff’s time effectively and give your customers clear expectations for making reservations. In short, a booking policy is all about making the process seamless and stress-free for everyone involved.

Different businesses will need different clauses in their booking policies. For example, tattoo artist Daniele Lugli shares why non-refundable deposits are so crucial to her policy.

“It really depends on the nature of your business, but for me, non-refundable deposits upon booking are essential. We often overlook that the time and money invested in client communication, booking, and calendar management are integral parts of our work, and we essentially perform unpaid labor if clients cancel. Charging a deposit encourages clients to be more committed to their appointments, prompting them to choose dates more carefully, which in turn reduces the need for rescheduling.”

P.S. See Daniele’s tattoo booking page in action!

Return and refund policy

A return and refund policy is like a safety net for both customers and businesses, laying out the rules for returning products or services and issuing refunds.

Why is it important?

A well-defined return policy not only boosts sales by instilling confidence in customers, but also saves time and enhances satisfaction by efficiently addressing refunds and returns. Additionally, it safeguards against return fraud, protecting your business.

Corine La Font, host of the paid podcast Between The Lines and communications specialist at LaFont and Associates, explains what she had to include in her return policy for her podcast to run smoothly:

“As part of my terms and conditions, I included a no show policy which was also tied to my refund policy. In other words, if my guest is not in studio 15 mins prior to going live (this 15 mins allows us to test audio, video, answer any questions and do a quick run through of the format), then I can cancel the show, there's no refund and they will have to rebook. A reschedule in a case like this would not be accepted.

Rescheduling is another part of my terms of conditions. One reschedule is allowed under extreme circumstances and this must be communicated in writing or, if within a reasonable time (at least 3 days) before the show is aired, the guest can reschedule using the reschedule button.”

On Corine's booking page, you’ll see that a payment is required before confirming the booking.

Privacy policy

A privacy policy explains how a company collects, uses, and protects personal information from customers or website visitors.

Why is it important? 

Your customers’ privacy is crucial and a privacy policy helps safeguard it. By being transparent about how your company handles customer information, you’ll build trust and ensure all data is treated with care and respect. An added bonus is that it’ll help ensure your business follows all legal requirements and can improve your site’s SEO ranking.

Employee conduct policy

An employee conduct policy sets expectations for acceptable behavior and conduct in the workplace, including professionalism, ethics, and interpersonal interactions.

Why is it important? 

Workplaces should be welcoming and respectful environments. An employee conduct policy sets the tone for positive interactions and helps prevent misunderstandings or conflicts. It also lets you and your team know what to do in case of any inappropriate behavior. 

👉 See a real-world employee conduct policy example. 

Equal opportunity policy

An equal opportunity policy promotes diversity and inclusion in the workplace by ensuring fair treatment and opportunities for all employees, regardless of factors such as race, gender, or disability.

Why is it important? 

An equal opportunity policy fosters a diverse and inclusive work environment, improving employee morale, creativity, and innovation. It’ll help you create a level playing field where everyone can thrive and succeed, especially minorities. Proving a commitment to fairness and equality can additionally help attract and retain top talent. 

👉 See a real-world equal opportunity policy example. 

Social media policy

A social media policy establishes guidelines and expectations for employee use of social media, both personally and professionally.

Why is it important? 

Social media can be a powerful tool, but it's essential to use it wisely. A social media policy helps protect the company's reputation and ensures employees represent the brand positively. It's all about being mindful of how our online actions can impact ourselves and others.

👉 See a real-world social media policy example. 

Paid time off (PTO) policy

A PTO policy outlines the company's guidelines and procedures for providing paid time off to employees, including accrual rates, request processes, and eligibility criteria.

Why is it important? 

Taking time off is essential for recharging and staying healthy. A PTO policy ensures everyone knows how to request time off and what to expect in terms of pay and benefits. It also helps manage employee absences effectively and ensures compliance with labor laws and regulations.

👉 See a real-world paid time off policy example. 

Confidentiality policy

A confidentiality policy sets guidelines for handling sensitive or confidential information, including access, disclosure, and data protection procedures.

Why is it important?

Think about the first time you visited a professional who was tackling private information about you, like a doctor, therapist, or lawyer. It’s likely that they shared their confidentiality agreement with you from the get-go. 

Trust is the foundation of any relationship. A confidentiality policy helps build trust by ensuring sensitive information is protected and handled with care. It safeguards the company's intellectual property, trade secrets, and customer data from unauthorized access or disclosure. 

👉 See a real-world confidentiality policy example. 

Health and safety policy

A health and safety policy outlines a company's commitment to providing a safe and healthy work environment for everyone. It often includes procedures for identifying hazards, reporting incidents, and implementing safety measures.

Why is it important? 

At the end of the day, nothing’s more paramount than health and safety. These policies prevent accidents and injuries, protect employee well-being, reduce absenteeism and healthcare costs, comply with legal requirements, and enhance your company's reputation as a responsible employer.

👉 See a real-world health and safety policy example. 

BYOD (bring your own device) policy

A BYOD policy lays out rules and guidelines for employees who use personal devices, such as smartphones or laptops, for work. The policy usually includes security measures, usage restrictions, and data protection protocols.

This is incredibly important if you work with sensitive client information. After all, you want to mitigate the risks of scenarios like employees getting hacked and sensitive data getting leaked.

Why is it important?

A BYOD policy ensures your employees feel comfortable and empowered to use their own devices while protecting your company’s security and privacy. It aims to enhance productivity and flexibility, reduce IT costs, mitigate security risks associated with personal device usage, and ensure compliance with company policies and regulatory requirements.

👉 See a real-world BYOD policy example. 

Compensation policy

This policy defines a company's approach to employee compensation, including salary structures, incentive programs, performance reviews, and pay adjustments.

Why is it important?

A compensation policy outlines clear guidelines for determining pay and rewards, ensuring everyone is treated fairly and equitably. Plus, it gives employees a clear understanding of what to expect regarding their compensation package, so there are no surprises down the road.

👉 See a real-world compensation policy example. 

Travel policy

A travel policy sets guidelines and procedures for employee travel, including booking arrangements, expense reimbursement, travel safety, and compliance with company policies and travel regulations.

Why is it important? 

Traveling for work can be stressful, but your travel policy will make it as smooth and hassle-free as possible. By providing easy-to-follow guidelines and support for your employees’ travel needs, you’ll ensure they have everything they need to stay productive and comfortable on the road.

👉 See a real-world travel policy example. 

Remote work policy

A remote work policy establishes expectations and rules for employees who work outside of traditional office settings, including communication protocols, technology requirements, performance metrics, core working hours, expected response times, and work-life balance considerations.

Why is it important?

Remote work has its perks, but it also comes with its own set of challenges. Your remote work policy will make sure your team has everything they need to stay productive, connected, and engaged, whether they’re logging in from their couch or favorite coffee shop. 

👉 See a real-world remote work policy example. 

Working hours policy

A working hours policy defines employees' regular working hours, break times, overtime eligibility, and any flexible or alternative work schedules, such as flextime or compressed workweeks.

Why is it important?

A working hours policy sets clear expectations for core working hours, facilitating collaboration among your team. It also details overtime procedures, including whether overtime is compensated, caps on overtime hours, and requirements for staff to justify overtime. Overall, this policy will ensure compliance with labor laws and regulations while fostering a healthy and productive work environment.

P.S. If your vacation policy is nestled under your working hours policy, don’t forget to include how vacation hours are accrued! 

👉 See a real-world working hours policy example. 

FAQ about workplace policies for small businesses

How do I inform my team about our workplace policies?

To ensure your team is well-informed about workplace policies, consider including a training session in your employee onboarding process where you cover all relevant guidelines. Additionally, provide easy access to written policies in your employee handbook or company knowledge base. Regular reminders during team meetings can also reinforce important policies and ensure everyone stays informed. Don’t forget to communicate any changes or updates to your policies. Your employees can’t follow the rules if they don’t know what they are!

How do I communicate my policies to customers?

You can prominently display key policies, such as return or privacy policies, on your website, at your physical location, or during the checkout process for online purchases. Clear and concise information in marketing materials, order confirmations, and receipts can further help customers understand your policies and feel assured in their interactions with your business. If you use an online scheduling tool to book appointments, we recommend including a link to your policies (e.g., booking, refund, and cancellation) on your booking page and form. Additionally, require customers to agree to your policy before scheduling a service.

How do I know which workplace policies for small businesses I should implement? 

Deciding which workplace policies you currently need will depend on a few factors, including your industry, company size, culture, and legal requirements. Start by spotting areas where it’s most vital to have clear rules. Depending on your business, this could be employee conduct, health and safety, or data privacy. It’s always a good idea to consult legal experts and examine other similar companies' policies. You can also ask for input from your team when crafting your employee handbook to ensure it reflects your company values and goals as well as addresses their most pressing concerns.