Employee Handbooks (Part 1 of 2): Why your business needs one?

Creating employee handbooks can seem like a huge project for growing businesses, but having a comprehensive document from the start can have positive impact in the long term.

Why your business needs an employee handbook?

• Establish company culture

The employee handbook is one of the first pieces of company culture a new employee interacts with.  This section introduces an employee to the company’s values, mission and beliefs giving them a sense of belonging.

• Communicate expectations

Employees get a clear understanding of their job responsibilities, and who to go to if they have questions. It also outlines general norms regarding safety, timekeeping and reporting.

Employee handbooks not only keep employees accountable but also management. They provide management guidelines on leadership practices.

• Ensure clear and consistent communication of company policies

A handbook will contain all of your organization’s policies regarded employment, conduct and behavior, compensation and other policies. Managers and employees can refer back to the handbook to make sure their actions are consistent with company policies.

• Showcase your benefits

Many companies offer their employees robust benefits packages. The employee handbook is the ideal place to explain these policies and eligibility requirements.

• Compliance with federal and state law

An employee handbook communicates the steps taken to be compliant to federal and state regulations. With various government mandates, handbooks clearly define company policies regarding these regulations.

• Helps defend against employee claims

In the event that a company faces a lawsuit one of the most useful documents you can provide your legal counsel is your employee handbook. A detailed handbook can show that your organization practiced “reasonable care” towards your employees.

• Gives employees a place to turn for help/reference

A well written employee handbook serves as a guiding light. The handbook outlines how employees and management should act in a variety of situations and who to turn to for help.

By providing clear, accessible information, employee handbooks ensure companies continue to grow in the right direction.