No Employee Handbook is Complete Without These 5 Things

Chris Goodwin, SHRM-SCP

 

An employee handbook is a fundamental tool for any successful company. Part guidebook, part code of conduct, and part company constitution, the handbook underscores all of the specific and unique ways in which your company operates. 

In order to cover all bases, legal and operational, your handbook, presented to new employees as part of the onboarding package, must clearly state the policies, protocols, and procedures adhered to by employees for your organization. A good employee handbook outlines the mission statement as well as the vision and values your organization embraces. 

If you fail to clearly communicate your organization’s policies and procedures, your employees may feel those directives are nonexistent. You must spell out all the rules and regulations to your employee or you may risk fines, harsh penalties, and even legal action brought by an employee.

Obviously, employee handbooks are essential to doing business and provide a reference for policies, HR information, and conduct but how can you make sure your handbook is relevant and compliant? Employees need to know what is expected of them and what they can expect from your organization and employers need to cover their assets in the event someone brings legal action. 

 

5 Essential Areas to Include in Your Employee Handbook

Here we offer 5 key areas you must include in your employee handbook to ensure your recent hires-and even your seasoned team members have a complete understanding of how business is conducted as well as that conduct which is unacceptable.

 

1. General Information, Mission Statement, Company Overview

A great way to begin your company handbook is by introducing your organization. Offer a bit of background on your business, how the company’s mission and values evolved, and explain your intent for the handbook; how it will help the onboarding process by providing a view of the company culture through your policies. Include how the handbook is intended to introduce the responsibilities of both employee and employer to drive mutual success.

 

2. Legal Policies and Policies Required by Law 

There are policies you are required, by law, to include in your handbook. These policies are:

• Equal Employment and Non-Discriminatory Policies: The U. S. Department of Labor requires you to post information stating that your organization adheres to equal employment opportunity laws and nondiscrimination laws when hiring or advancing employees. 

• Worker’s Compensation Policies: Most states require you to provide employees the worker’s compensation policies in writing.

• Family Medical Leave Policies: The federal government requires certain employers to provide their employees with up to 12 weeks of unpaid leave during a 12-month period for the birth of a child, care of a child or immediate family member with a serious health condition, or if the employee suffers from a serious health condition. Many states also have policies regarding family leave and require the handbook to include those policies.

• Specific State Policies: Be sure to check with your state labor board as some states require your handbook have certain additional policies spelled out for employees. Policies vary from state to state.

3. Clauses to Include

• This Handbook Supersedes Previous Policy Documents: Make it clear that the policies presented in the handbook are the ultimate word on company policy. State that the handbook replaces all previous policies, procedures, and protocols that may have been issued.

• Policies are Subject to Change: Businesses evolve, issues arise and new policies may need to be put into place. This disclaimer allows for wiggle room should you find you need to revise. Make it clear that the guidelines and policies included are subject to change as the organization deems appropriate. 

• This Handbook is Not a Contract: It’s necessary that you point out the handbook is not a contract of employment and is not intended to guarantee employment. 

• Acknowledgement Page: You must protect your business by acknowledging that the employee has read and understands the company’s policies as outlined in the handbook. They must verify that they indeed are aware the company is compliant with the laws of the Department of Labor at the state and federal levels and that they know that it is their responsibility to read and follow the policies, procedures, and code of conduct as stated in the employee handbook. This page must be signed and then placed in the employee’s personnel file. 

 

4. Specific Policies Relating to Employment

• Paid Time Off This section spells out the specifics surrounding vacation policy, how time off is earned and how it is scheduled. The PTO section should include a list of the holidays your organization observes, when you are closed and if the employee is required to work on a holiday, and how they are compensated (additional day off, for example). You may use this section to address sick days, extended leave, and military spousal time off. 

• Pay and Promotions: How often will the employee receive a paycheck? Weekly? Every two weeks? This is where you outline information such as the number of pay periods in the year, method of payment, whether you offer direct deposit, and so forth. If there is a commission let your employee know the commission structure and when they can expect to receive their commission compensation. 

• Benefits: Provide your employees with a general overview of health care, vision, dental, and life insurance benefits that you offer. Benefits tend to change frequently so don’t delve into specifics. Discuss eligibility and whether you offer prorated packages for part-time employees. You may also outline criteria for eligibility, when benefits are available, and what major life events allow for changes in benefits (marriage or birth of a child, for example). 

 

5. Include Those Things that Are Important to Your Organization’s Operations

Of course your handbook will be specific to your organization. Take the time to reflect on just what matters. Weigh your policies and determine how they will be enforced. 

• Code of Conduct: This section of your employee handbook sets the stage for company culture and a positive work environment. When you let your employees know what is expected of them in terms of conduct it creates a much more cooperative environment. This section should cover specific expectations and policies regarding things like conflict resolution, dress code, ethics, workplace relationships, smoking, alcohol use during work hours, personal business, use of the internet, meal breaks, rest periods or break periods, on-time arrival, excessive absences.

 

Proper Vetting of Policies

Vetting your employee handbook is one of the most important tasks. Do not distribute your handbook until it is reviewed by a business attorney. That way you are ensured the information provided is legal and offers you and your company a degree of protection against litigation.

 

Partner with The Experts

Small to mid-sized businesses must create employee handbooks that both protect them from lawsuits, fines and penalties as well as give new hires a clear understanding of policies and procedures. Of course, each company is unique and will need to make certain provisions pertaining to its specific business. The best handbook details those areas that are important to the company leaders and true to the organization’s mission. 

The value of a thorough and well-thought-out employee handbook can never be emphasized enough. To that end, you need the HR expertise of Cornerstone Coaching & Consulting on your side. Top professionals from HR backgrounds who work with you to ensure your business is operating at full potential and your employees are happy and engaged. Contact Cornerstone Coaching & Consulting today and let’s work together for your business success.