I was meeting with a client a few weeks ago, and we started discussing various employment issues we both face. The conversation turned to the value of having an employee handbook. Most small businesses with a small number of employees don't see the benefit of having an employee handbook nor the downside of not having one, but I can tell you from personal experience that not having one can cost you money!
Both my client and I have had employees who abandoned their jobs at one time or another. My client recently terminated an employee for job abandonment, and it was determined that he was not the chargeable employer. My client was very lucky since he did not have an employee handbook in place either. Had it been determined that he was a chargeable employer, we calculated that it would have cost him almost $10,000 over the next several years.
All businesses, regardless of size, should have a written policy manual in place. An employee handbook outlines policies and procedures for the company, as well as provides an explanation of employees' rights and privileges. A thoughtfully prepared and up-to-date manual provides clarity for all employees regarding expectations, while also helping to protect your company from potential liability.
If you choose to create an employee handbook on your own, be careful in the initial drafting to allow for flexibility in discipline and termination procedures, and to not create an impression of a contract with the employees. A well written handbook is a great communication tool and should reflect the organization's culture. If you don't want to pay an attorney to draft one for you, find a human resources consultant. They are generally more reasonably priced and knowledgeable of current legislation.
