At one time, it was believed that employee handbooks did more harm than good. Those days are gone and, in today's business environment, employee handbooks are important to both the employer and employee.
Here are several reasons why you should consider adopting an employee handbook:
1. Your employee handbook introduces employees to your business.
What is the culture of the business?
What do we care about most?
How will the new hire fit into the culture of the business?
A brief introduction will answer some of these basic questions, give fair expectations to the employee, and help create a sense of belonging to the new employee.
2. Your employee handbook will let employees know the type of behavior that is expected.
How does the employee request paid time off?
What is the vacation policy?
Who does the employee go to with questions about specific policies?
Are there specific safety instructions for the employees?
Are there specific time-keeping/reporting instructions?
Answer these types of questions in the handbook provides important information to the employee and helps to ensure compliance in some instances.
3. Your employee handbook will communicate your benefits package.
Do you offer a 401(K), health insurance, paid leave, etc?
Make sure your handbook clearly outlines the type of benefits offered and the eligibility requirements for them. A clearly outlined benefits package will help you to get best applicants and retain your best employees.
4. Your employee handbook will help ensure consistency.
No amount of policy or procedure is effective unless consistently applied. A handbook will allow employees and managers to know exactly how certain situations are to be handled. The handbook will be a tool of reference in situations, and will help to make sure situations are handled in the same manner.
5. Your employee handbook will help to maintain compliance with federal and state laws.
Does the Family Medical Leave Act apply to your company?
Does your state have specific laws regarding disability leave?
How does your company handle active-duty military leave?
Answering questions similar to these will communicate to the employee that your company considers compliance very important. The handbook will also become a handy tool of reference for managers when this type of situation arises.
6. Your employee handbook will communicate where employees go when they need help.
Who do I tell about workplace violations?
Who do I speak with about possible harassment in the workplace?
These are common questions in today's workplace. A clear policy detailing how these complaints are handled and investigated will allow the employee to know what to do in this case. Without a policy like this, the employee will be more likely to contact the DOL or the EEOC, which we would all like to avoid if possible.
7. Your employee handbook will help defend against employee claims.
A thorough employee handbook will help to prove that your company clearly expresses expectations, and will help to prove consistency in treatment which is very important in worker's compensation disputes and other employee claims. By getting each employee to sign an acknowledgement of receipt of the handbook, it will show that they are familiar with the policies, knew who to go to with concerns or questions, and agreed to follow the terms and conditions of employment.
If you have an existing handbook, it might be a good idea to pull it out and review it from time to time to ensure it still communicates what needs to be communicated. Have any benefits changed? Have any regulations or laws changed? Have our policies changed? Make sure your handbook reflects the current culture of the business. If you do not have a handbook, consider creating one as they are valuable for business in several respects.