The Making of an Employee Handbook
An employee handbook should explain more than rules. It offers you the opportunity to set expectations and communicate your company's mission and culture as well.
By: Will Helmlinger
What is an employee handbook? Is it the rules you expect your employees to follow? Is it a marketing piece designed for future employees? Or does it provide a roadmap to make business decisions that impact employees?
It all depends on the message you want to deliver. Consider these three different types of handbooks.
A rules driven handbook will ultimately constrain your employees. Handbooks written utilizing this methodology will be clear that employees are expected to embrace a legal document. This handbook is filled with specific policies and procedures that appear to cover legal angles designed to protect the company. Yes, it is important to outline such doctrines as "employment-at-will," and handbooks should include important issues as equal opportunity and harassment in the workplace. However, any legalistic tone to your employee handbook also clearly sends signals about the culture of your company.
A marketing focused handbook is broad in topic, and uses positive and motivating terminology. This handbook is filled with generalities designed to make the employees "feel good." A positive marketing message can excite existing and prospective employees alike. It gives them an idea of your company's culture and what you value. However, a "feel good" handbook alone may not serve you well in the long term. And if it is overly filled with superficial marketing messages, employees and prospects will see right through it.
The business decision handbook is a guide that allows you to make solid business decisions that impact your employees. It is your "business HR guide" that doesn't constrain employees. Rather, it liberates and allows for faster and easier business decisions. It is your reference manual that gives leaders, managers and employees the information they need to make informed decisions, without being rules driven.
You may choose to create your own handbook; or use legal counsel; or purchase an employee handbook software program, or even hire an outside consultant to help you write your manual. Whichever method you choose, be sure to have your handbook reviewed by multiple sets of eyes. The final content must meet the criteria that satisfies the purpose and intent of your manual.
What should you include? The following list is not designed to be exhaustive, rather it's intended to stimulate you to make it easier to develop your first handbook, even update a current one. Consider the following sections:
Introduction
This is where you set the tone for the entire document and is a perfect opportunity for you to define your company culture and get employees excited about the company.
- Include a Welcome Message from the CEO.
- Provide a History of the Company. Even though your history already resides on your website or in other marketing pieces, this is the time to reinforce your position and market your company to prospective employees and re-recruit your current employees.
Employment Policies
Employment policies need to be clearly stated. This sets the stage for employees so they understand how employment decisions are made.
- Employment policies may include an at-will section; a statement about equal employment opportunities; a section on harassment and problem resolution; immigration; and the Americans with Disabilities Act (ADA). It may even contain a statement on how you handle new hire orientation, employee transfers, and promotions.
Employee Conduct
Advise employees on your company's "societal guidelines." This helps reinforce your company's values and ethics.
- Ethics, confidentiality issues, employee grooming, and workplace rules are all areas to cover. This is your opportunity to state where your boundary lines are and clearly articulate the ethics and values you expect your employees to exercise while at work.
- Communications and software/hardware issues also are topics to include. This is your chance to cover procedures about company e-mail, phone, and fax usage, even guidelines on handling company owned equipment.
- Performance management and corrective actions paragraphs are important areas, as well. Performance appraisals, employee development, and how you handle employee/labor relation's issues need to be addressed.
Compensation
Compensation includes all aspects focused on money and how payroll issues and practices are managed.
- Include pay administration practices including pay periods, payroll deductions, method of payment of wages, and even time keeping records. Define the terms exempt and non-exempt employees and how it impacts employee wages. State how you handle merit/wage increases and bonuses.
- Cover working hours. This entails company hours of operation, authorization for overtime pay, emergency closings, flexible working hours, and even telecommuting.
- Employee expenses and reimbursement is the final part. Explain what expenses are allowed, including client entertainment, mileage, and reimbursement for travel. Include how expenses are to be filed and in what time frame expenses are to be reported.
Benefits
Clearly state the purpose and policy of employee benefits. Summarize plans and advise employees where they can obtain full documentation.
- Explain the benefits offered and any employee cost-sharing; outline your 401k or similar retirement package. Cover paid time off allowances, company paid holidays, and other company paid or sponsored benefits. These include educational/training assistance, tuition reimbursement, and even mass transportation cost-sharing.
Leaves of Absence
Leaves of absence can vary depending on the size of your company and the policies you adopt. They may also be determined by legislation or contract.
- Include medical leave, family leave, personal leave, military leave, sabbaticals, bereavement, jury duty, witness duty or other types of leave you may need or want to provide.
Health and Safety
This section should not be under emphasized. The health and safety of your workers will impact your insurance costs, employee morale, and affect turnover.
- Include a section about smoking in the workplace, substance/drug abuse and usage; violence in the workplace and even weapons in the workplace. A clear statement regarding personal attire in the workplace may be appropriate, as well.
Employment Separation
At some point in time, all employees will leave your organization. Plan ahead for this event and include:
- How resignations should be handled, including time frames; explain the procedures for job elimination, reduction in work force, and discharge/terminations.
- How exit interviews are conducted, and explain the purpose behind such employee meetings.
- What you expect of the employee in terms of the return of company property.
- How and when the employee's final check will be delivered.
Your employee handbook may contain some or all of the sections mentioned above, and even some not mentioned in this article. What's the bottom line? A well-written employee handbook is a powerful recruitment, retention, and business tool - a tool every company needs to have and keep current.