Why Your Business Needs an Employee Handbook


Employee handbooks may not be the first thing that comes to mind when launching a new business or growing an existing one. Many businesses overlook the importance of creating and updating their employee handbooks and put themselves at risk for future employment issues.

Businesses of all sizes use employee handbooks to provide valuable information to their organizations while protecting themselves from unwanted litigation and other legal claims. Your employee handbook is essential to establishing your company’s policies and creating a consistent work culture that benefits everyone.

What Makes an Employee Handbook?

A comprehensive and effective employee handbook must begin with the needs of your business. Consider your short- and long-term objectives along with the ways in which you’d like to ensure that employees are fully satisfied at work.

Employee handbooks clarify the standards of operations and procedures used to address a wide range of issues. It defines the expectations for employees and their employers.

The following are some of the most common elements that are included in employee handbooks:

    • Employee benefits
    • Performance rating systems
    • Decision-making processes
    • Dispute resolutions
    • Medical leave policies
    • Discrimination and harassment policies
    • Worker’s compensation benefits
    • Accommodation for disabilities
    • Military leave

Issues such as medical leave, equal employment, and worker’s compensation policies have unique considerations relative to the local and federal law. Some states require businesses to provide information related to these and other aspects of employment in writing.

Make Your Handbook Unique to Your Business

Your employee handbook must be presented in a clear and comprehensive way. It’s important that your employees have all of the information they need to answer their questions.

An employment attorney considers local, state, and federal laws when determining what to include in employee handbooks. Any policies that provide protection to the employer should be included and enforced consistently.

For businesses that operate in multiple states, it may be necessary to create different employee handbooks to reflect the local laws.

Your employee handbooks should be specific to the facility or department to which it applies. For example, a manufacturing division’s handbook may be different from the one provided to its management and sales departments.

Your employee handbook must reflect your unique business culture and keep the objectives of your organization in mind.

Why You Need an Employee Handbook Now

Employee handbooks aren’t always prioritized in today’s businesses. Employees may see them as a set of rules to follow while employers see them as yet another task they must complete to protect themselves from legal issues. But your employee handbook is an invaluable tool in establishing expectations. Employees appreciate knowing what to expect from their employers, and business owners create a sense of clarity that allows them to address issues in the future.

But your employee handbook is an invaluable tool in establishing expectations. Employees appreciate knowing what to expect from their employers, and business owners create a sense of clarity that allows them to address issues in the future. Your handbook establishes all of the policies of your business in one concise resource. It reduces the number of questions that management must answer over time. It creates transparency in your communication with employees.

Your handbook establishes all of the policies of your business in one concise resource. It reduces the number of questions that management must answer over time. It creates transparency in your communication with employees. An employee handbook demonstrates an awareness and appreciation for the needs of employees and creates a positive culture within an organization. It’s a valuable way to encourage and demonstrate how employees can meet the expectations of their positions.

An employee handbook demonstrates an awareness and appreciation for the needs of employees and creates a positive culture within an organization. It’s a valuable way to encourage and demonstrate how employees can meet the expectations of their positions.

More importantly, a handbook makes it clear that all members of your organization have been made aware of your policies. This is especially important when dealing with lawsuits and unemployment claims. Handbooks can be provided as evidence during litigation to show that a given policy had been put in place. This increases the likelihood of reaching a satisfactory resolution to any legal claims.

Handbooks can be provided as evidence during litigation to show that a given policy had been put in place. This increases the likelihood of reaching a satisfactory resolution to any legal claims. Employee handbooks must provide information related to many aspects of your business, its employees, and procedures. It should be unique to the needs, culture, and expectations of your organization while reflecting the local, state, and federal laws.

Employee handbooks must provide information related to many aspects of your business, its employees, and procedures. It should be unique to the needs, culture, and expectations of your organization while reflecting the local, state, and federal laws.

Having a knowledgeable employment attorney develop your employee handbook protects your business from the damages that can result from lawsuits and claims. Taking the time to meet with a lawyer means your employee handbook will be an investment in the future success of your business.