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The company employee handbook is one of the most important communication tools between your company and your employees. Not only does it set forth your expectations for your employees, but it also describes what they can expect from the company. It is essential that your company has one and that it be as clear and unambiguous as possible. Make certain that it is written in an understandable language that makes the company's policies accessible.
The company employee handbook and related personnel policies are usually the first formal communication that you will have with an employee after they join your team. Make sure the first impression is a good one. Similarly, in the event of a dispute or poor performance review, this will be the first place that the employee turns.
If your handbook is good, you get a bonus: a measure of legal protection if you're challenged by an employee in a court or administrative proceeding. A handbook can be an objective piece of evidence showing that you've adopted fair and uniform policies and have informed your employees of exactly where they stand in their employment.
Key Components To Creating An Employee Handbook
Keep in mind when developing your handbook not to include unnecessarily specific information; shorter is almost always better. Experts consider the following subjects to be the most essential ones to cover:
- Company overview. Introduce your company with a few paragraphs about its history, growth, goals, ethics and management philosophy.
- Equal opportunity statement. State that an employee's religion, age, sex or race will have nothing to do with hiring, promotion, pay or benefits.
- Work hours. Define the work week and time allotted for lunch and breaks.
- Pay and performance issues. Because pay issues are sensitive, it is wise not to include specific numbers or targets. General statements about when paychecks will arrive, how promotions and wage increases are handled, classification of employees (part-time, full-time, on-call) and policies on pay advances, leaves without pay, overtime and other pay irregularities are sufficient.
- Performance Review. Also include the policy on performance review so employees will know in exactly what areas they will be evaluated and how often (i.e., on the anniversary of employment or during a set annual or semi-annual period). You may also want to state that written evaluations can be made at any time to advise workers of unsatisfactory performance. Finally, a statement about in-house vs. external hiring policies may also be appropriate in this section.
- Benefits. Ask your insurance company for copies of their own brochures that explain your insurance policies (such as health insurance, parental or maternity leave) in detail. In addition, your handbook need only define who is eligible for insurance, how long a new employee must wait for coverage, and what portion of premium costs is paid by the company. Also list additional insurance such as dental or disability that employees can buy through the company.
- Time Off. Explain policies on vacation and all types of leave, including sick, military, funeral, personal, family, medical and jury duty. List paid holidays.
- Pension or profit-sharing plans. Discuss when and how employees become eligible, whether an employee contribution is permitted or required, and when employees become vested.
- Standards of conduct. One of the most important reasons to have the employee handbook is to ensure that staff understand what you expect of them. Toward this end, detail desired behavior (such as dress and timeliness) as well as your policies on sexual harassment, racial and sexual discrimination, use of alcohol, drugs and tobacco in the workplace (including pre-employment screening and post- accident testing), and disciplinary procedures.
- Termination. List the just causes for which you will fire an employee, including criminal activity, poor performance, dishonesty, security breaches, insubordination, absenteeism, company policy violations, health and safety threats and dress code infractions.
Also add the disclaimer that the handbook is not a contract, policies can be changed at any time, and all employment is "at will." This means that the company's relationship with employees is not a guarantee of employment, and can be terminated at any time with or without cause or notice.
Finally, outline your grievance procedure.
- General information. This section should be geared toward new hires who may not know how to get around, at what time they'll eat lunch, or where they should park.
Consider including these items: area maps, a parking pass, an organizational chart, phone lists, a statement regarding the confidential nature of your business, and policies addressing gifts, use of company cars, traffic tickets and personal telephone calls. - Forms. It is logical to have blank forms attached to the policies to which they refer. While individual businesses will need different forms, consider including blank forms regarding: sick leaves, vacations, seminar attendance, sub- contractor contracts, requests for a quotation, grievance filing, travel reimbursement, performance reviews, pay advances and accident reports.
Reader acknowledgment. Protect your liability and encourage employees to read the handbook by having them sign an acknowledgement letter. Another option is to include two copies of an acknowledgement letter; one stays with the handbook after being signed while the other goes in the personnel file.
Would you like more information or help in creating an Employee Handbook for your small business?
Our number one objective is to help you grow your small business!
For more information visit Eagle Business Solutions, Inc.
