Employee handbooks protect your company and educate your employees about what they should expect from you, and what you expect from them. Every company, no matter how large or how small, should have one.

Creating an employee handbook develops concrete policies and procedures for employees to follow while at work. The book also helps them understand the formality of the workplace rules and that everyone works with the same guidelines.A company handbook protects you in legal situations. With regulations becoming increasingly invasive, you can’t afford to hire, fire and manage employees without a written explanation of how your company officially handles employment issues.

A handbook’s goal is to define rules and expectations without limiting an employee’s individual ability to shine. Employees don’t need direction on every little thing and should make some decisions on their own. With this in mind, concentrate on concise writing covering the major issues.

Bottom line: the more clearly you communicate with your staff, the more profitable your business will be with less misunderstandings.

According to an article in Inc. magazine, “The (Handbook) Handbook” by Tom Ehrenfeld, an employee handbook should:

• communicate indispensable company policies and practices;
• make explicit the mutual agreements between employees and employer without actual contracts;
• state and express company philosophy;
• motivate employees about the job;
• convey a broader sense of the company mission.

In addition, it needs an effective “look.” An employee handbook should be easily read with graphics and lists, and arranged in a logical format.

When distributing the handbooks, each employee should receive one and later sign a receipt acknowledging they did read and comprehend it. Don’t fall into the trap of thinking of this document as just a tool to cover yourself from problems. That tone will turn employees off. However, the wording used in an employee handbook can be used against you, so any materials created should be reviewed by an expert with extensive experience developing and writing employee handbooks.

The following items are included in typical employee handbooks:

Mission Statement
The first step is to formulate and clarify your company’s mission statement. Your mission statement should include direction on company goals and manner of operations.

Work Environment
Such issues as equal employment opportunity, job posting, hours, performance, absences, and jury duty should be covered in this area. Include a special section on specific, individual job requirements. Add information on promotion, reporting for work, time recording, tools and equipment, personal property, security, personal phone calls, car parking, lockers, and notice boards. Include information on any probationary periods for new hires.

Compensation & Benefits
This section covers regular and overtime pay, health, dental, life and disability (both short and long term) insurance, workers’ compensation, vacations and holidays, personal and sick days, retirement programs, tuition reimbursement, tool reimbursement, mileage reimbursement, and employee-assistance programs.

Employee Conduct
Include information on hygiene, dress code, vehicle conditions, radios or snacking on the job. What about drugs or alcohol? Smoking?

Organization Chart
Reveal your chain of command and prevent bottlenecks as employees know who to see about specific problems.

Legal Requirements
Most employers are now subject to more than 100 federal and state laws affecting the content in employee handbooks. Laws such as the Americans with Disability Act, Immigration Reform Act, the Family and Medical Leave Act, and other nondiscriminatory statutes may seem burdensome but you could pay a great deal for not including them. A clause also must be included regarding sexual harassment. Be sure your handbook isn’t construed as a contract for employment by including a disclaimer such as, “This handbook is not a contract, express or implied, guaranteeing employment for any specific duration. Either you or the company may terminate this relationship at any time, for any reason, with or without cause or notice.” Include warning that the company can change, rescind or add to any policies in the handbook at its discretion. These clauses must be posted clearly and conspicuously to meet legal requirements. Also, think specifically about which policies apply to whom. Do they apply to all people or just to full time employees? Are they just for salaried or hourly employees, too? Does the employee have to work for your company for a certain amount of time before they can receive certain benefits? Be sure to have your attorney review any handbook before distributing it.

Staff Development
This area should address the appraisal of staff performance, opportunities for advancement, and training and education.

Discipline and Termination
Let employees know what it takes to get fired. Many companies use a three offense system: the first offense is a verbal warning with a write up to the employee’s file, the second is a written warning and possible suspension, and the third means dismissal.

Grievance Procedures
If there’s a complaint against another employee, how should employees report it to management? Will you work through arbitration?

Safety and Security
Policies Make a commitment to safety through written policies. Workplace injuries can cost your company dearly so be adamant about safety procedures. Include materials on accident prevention, reporting on-the-job accidents, and fire emergencies.

Confidentiality Clause
Confidentiality can be crucial in today’s competitive environment. Employees should understand the importance of confidentiality regarding vendors, customers and private financial information. Former employees should also respect this request. These details should be included in any employee handbook worth its salt. It’s well worth your efforts to put policies and procedures in writing before your company grows or before a misunderstanding occurs. If you desire informed employees with a clear understanding of their responsibilities, an employee handbook is an indispensable business tool.

Karen Gallagher is a human resources
consultant with Johns & Associates.
She can be reached at (904) 224-1439 or
kgallagher@johnsassociates.net.