Employee Handbooks: A Complete Guide | Complete Payroll (2024)

Introduce Employees to the Organization’s Culture, Mission, and Values

Your employee handbook is every new employees’ introduction to your organization’s culture and where they will fit within it. This helps to foster a sense of pride and belonging, which studies show will help employees become more productive in a shorter period of time. The introduction section of an Employee Handbook should answer questions like: “what do we do that sets us apart?” “How did the company get here?” “what are we passionate about?,” and “how can I, as a new hire, become a part of this culture?” The introduction section sets the standard for the employment relationship ingeneraland provides a guidepost for the remaining policies communicated in the handbook.

Communicate to Employees What is Expected of Them

A well-written handbook provides employees with a clear understanding of their responsibilities. The handbook also serves as a compass for the organization’s policies and procedures. For instance, your handbook will advise employees what the procedures are for requesting time off. If an employee has to call in sick, the handbook advises them whom they should contact and what the timing should be. It also tells employees whom to go to if they have questions about any of the specific policies in the handbook. The handbook also communicates an employee’s general responsibilities regarding safety, timekeeping, reporting, and so on. By providing this clear, accessible information, handbooks ensure companies continue moving in the right direction.

Educate Employees About What They Can Expect From Management and Leadership

An employee handbook clarifies company objectives and leadership styles, as well as management best practices, to foster healthy professional relationships between managers and their reports. It also outlines logistics, such as timekeeping requirements, hours of work, pay periods, and so on. Further, a complete employee handbook advises employees of their various entitlements to federal and state leaves, such as FMLA or Jury Service Leave. These clearly communicated policies help to eliminate confusion and inconsistencies that result when handbooks are silent on these topics.

Communicate Key Company Policies, Clearly and Consistently

No policy is effective if it is practiced inconsistently. An employee handbook will accurately communicate your organization’s policies regarding employment, conduct and behavior, compensation, and other policies and procedures your organization follows. Most importantly, managers can refer to the handbook when answering questions or making decisions regarding their policies, and ensure their answers and actions are consistent with your policies and best practices.

Showcase Benefits

If your organization offers vacations, 401k, health insurance, paid parental leave, or other benefits to employees, make sure they know about these benefits and the eligibility requirements by communicating them in the handbook. A robust benefits package can help you retain your best and brightest employees, so be sure they know about your full suite of offerings by communicating these in the handbook.

Ensure Compliance with Federal and State Laws

No matter what state you do business in, or how many employees you have, you will be subject to state and federal employment laws. Your handbook not only communicates these various entitlements and obligations toemployeesbut is useful in demonstrating your organization’s commitment to remain compliant with these regulations. For example, if your employee is called away to active-duty military service, you want to be sure they understand their rights and obligations when communicating their need for leave to you. In this instance, your Military Leave Policy should clearly define these parameters to the employee. Similar policies should communicate rights and obligations regarding state disability leaves, federal FMLA leave, and other government mandates.

Defend Against Employee Claims

The unfortunate reality is that, as an employer, facing a lawsuit or similar challenge from a current or former employee is a matter ofwhennot if. An up-to-date, compliant handbook is a viable first line of defense against huge litigation costs. If an employee or former employee does file a claim, a handbook can provide valuable documentation to demonstrate that the employer had equitable and compliant workplace policies in place. It will help to prove that the organization exercised “reasonable care” towards its employees. The employee’s signedacknowledgmentpage will show that the employee had an opportunity to familiarize themselves with the organization’s policies, a chance to ask related questions, knew whom they could turn to for help within the organization, and agreed to follow the terms and conditions of employment set forth by the organization.

Lets Employees Know Where to Turn for Help

Employees should feel comfortable approaching a trusted member of management for help when they want to report workplace violations, get workplace-related assistance, and get answers to any other questions they may have. The alternative is for them to turn to an outside third party, like the EEOC or Department of Labor, which could trigger a costly and time-consuming investigation. When a handbook not only outlines one or two management individuals for an employee to turn to in thesesituationsbut also designates another individual to turn to in the event the employee disagrees with the first decision, they are more likely to keep their complaints in-house, which is a good thing for employers.