Are you unsure how to handle problem employees? Have you written more than one internal policy memo this past year? Do your employees constantly ask about personal leave, dress codes, or email policies? If your answer is yes to any of these questions it may be time for your business to create an employee handbook.
Three Reasons to Create Handbook
1. Improve Existing Company Policy
Perhaps the best reason for writing an employee handbook is the process itself. Setting aside time to review your policies will give your business the opportunity to better manage your employees, select the benefits that are best for your business, and recognize and address potential disruptive issues before they take time and valuable resources away from your bottom line.
2. Stay Out of Court
Because some states regard an employee handbook as an employment contract, handbooks can sometimes be a detriment to employers who find themselves in court. But, these in-court dangers can be minimized, however, with precise language and effective disclaimers. And where policies and expectations are clearly written, they can actually be helpful in demonstrating that the employer has gone through the right steps in handling HR issues. It is just important to remember that employers tend to get into trouble when they act inconsistent with written policies because this can upset employee expectations, and because divergence from established policy may be construed as evidence of impropriety.
In any event, the main legal advantage of having an employee handbook is avoiding court altogether. A readily available written policy offers both managers and employees a better opportunity to avoid misunderstandings that can lead to contentious and then litigious situations. When everybody knows exactly what the rules are, and sees them followed everyday, disputes are much less likely to occur.
3. Motivate Your Employees
Employees are best motivated when they know exactly what is expected of them and how they can go about improving their position in the company. Along with sections on sick leave, vacation, dress codes, and work hours, an employee handbook offers an employer the opportunity to re-sell its business to employees. Sections on promotions and raises can make employees believe their investment of hard work with the company will pay off down the road.
Writing Your Employee Handbook
The first step in creating your employee handbook is to gather all of your existing personnel policies. These items may include: descriptions of your current insurance policies, any previously written internal policy memos, and all of your existing unwritten rules. Next, take advantage of free resources available including the NFIB Small Business Legal Center’s Model Employee Handbook for Small Business. Finally, ask an employment law attorney to review the handbook before you distribute to your employees.
