For any size company having an employee handbook is as important as any other foundational document. Your handbook should serve as a go-to for both your employees and management. As with any organization, businesses must have documents in place that establish rules, expectations, benefits, and also address any potential “what if” scenarios.
An employee handbook offers legal protections for both employee and employer and should always be kept up-to-date with current policies. Although there are numerous reasons why you should have an employee handbook, below we’ve narrowed it down to a few of the most important reasons:
1. To Outline Policies and Expectations
An employee handbook sets forth the company’s expectations and rules for its employees. It also details what consequences to expect when those expectations are not met or violated. A few items to include in this section are:
Timeliness
Procedure for requesting leave
Expectations for professionalism
At-Will Employment Statement
Equal Employment Opportunity policies
Harassment & discrimination reporting
Social media policies
Leave policies, including but not limited to FMLA, PTO, sick leave, and maternity/paternity leave
2. To Foster a Consistent & Fair Environment
Your handbook should deliver a clear, concise message to ensure company-wide fair treatment for all. Your handbook is a rulebook that everyone is bound to and no one is exempt from. It is one of the strongest tools you can use to combat claims of discrimination or unfairness in the workplace.
3. To Defend Against Unemployment Claims & Lawsuits
A well-written handbook goes a long way in defending against unemployment claims and other potential legal actions. Many employers have found themselves in legal trouble after neglecting important handbook provisions for items such as:
Discrimination
Retaliation
Harassment
Workplace injuries
Many times, simply having a signed acknowledgment of the company handbook has released employers from legal liability. It is a step that you do not want to risk forgoing.
4. To Outline Benefits and Compensation
Aside from being made aware of what your company expects of them, it is important that your employees know what they can expect from you too. The benefits and compensation sections of your handbook will likely be most popular section of the book, and should detail items important to your employees such as:
Benefits available and enrollment processes
Probation periods
Performance review policies
Pay schedule
Review and/or raise schedules
These are just a few items that you should always include in your company’s employee handbook. Make sure that your handbook reflects your company’s values, culture, and mission.