Protects your Company from Litigation

Who doesn’t want to avoid a lawsuit or even the threat of one? A well-written handbook will spell out many of your rights and expectations as an employer. For example, the right to hire and fire employees at-will is a right most employers want to try to protect. A properly drafted handbook will reinforce the employment at-will relationship. In addition, having an employee handbook is a perfect vehicle for conveying the organization’s commitment to key behaviors, such as managing in a non-discriminatory manner. Employee Handbooks are a great way to counter the argument of “I didn’t know that was the policy.”

Reduces Inconsistencies

In the absence of written policies, past and present treatment of employees becomes the de facto policy. When an organization – because of the lack of written guidelines – treats employees differently or inconsistently, problems will erupt in the workplace; inconsistent treatment can be viewed as unfair or even discriminatory. Taking the time to draft a handbook gives management the opportunity to decide what works for the organization as a whole. Handbooks allow you to establish written policies that can be consistently and fairly applied. Your employees feel that everyone is on a level playing field.

Increases Productivity

Employee handbooks are an excellent and comprehensive way to communicate your company’s policies and procedures. How much time is wasted during the day by employees asking you or their supervisor questions about how something should be handled? Without clear guidelines, supervisors and managers spend far too much time answering questions, reconciling problems, or interpreting unwritten company policies. For new employees, the handbook provides necessary information on vacation, sick, and payroll policies. And the well-written handbook answers questions proactively and keeps employees focused on working.

Improves Morale and Cooperation

Handbooks can help improve morale and cooperation by giving you the opportunity to spell out your company’s expectations and guidelines for handling certain situations. Employees are more comfortable and can plan appropriately when they know the rules up front. Knowing such things as how and when to take time off, how to get a complaint resolved, or how much bereavement leave they’ll have, eliminates surprises and communicates valuable information to employees regarding the employment relationship.

Why Do You Need an Employee Handbook?

Employers are not legally required to have handbooks. Arguments against handbooks range from “it will be out of date as soon as we publish it,” to “I don’t want to be obligated to do things a certain way,” to “that is for bigger companies.” Why then do so many companies continue to invest the time and effort into creating and maintaining an employee handbook?

Handbooks are a proactive management tool, enabling you to set parameters and policies for your company and for employee behavior. Whether you have one employee or hundreds, handbooks are an integral and necessary part of running a business.

Here’s what a handbook can do for you:

Improves Company Communications

Handbooks are a vital workplace communication tool, clearly defining your company’s mission and culture, along with the expectations and privileges, of employment. A handbook sets the tone for workplace behavior and puts all of your policies in one place (which is especially helpful if you do business in a state that requires the communication of certain policies).