Why you need an Employee Handbook

In the daily whirl of building your business, managing your teams, juggling clients or customer needs and working hard to attract and retain the right employees, often, those niggling “nice to haves” tend to fall at the wayside and Handbooks (or policies) can seem very much like something that can wait! In the longer term, however, having a handbook in place may help shield you and your company from conflicts and confusion whilst also giving your managers and employees an understanding of their role and “how things are done around here”. We have talked in previous blogs about “setting expectations” and making sure these expectations are clearly spelt out for everyone to understand. A handbook can provide you with a handy reference for your teams but also can keep your business on track.

By providing clear, accessible information handbooks ensure companies continue growing in the right way!

So, what does a forward-thinking business owner (that’s you – you’re here aren’t you!?) need to know about Employee Handbooks?

What is an employee handbook?

An employee handbook is a compilation of the policies, procedures, working conditions and behavioural expectations in your business. It should include company-wide policy statements meant to govern the business. If as a business you are not that keen on large, complicated HR policies, a handbook could be your suitable solution! It provides an opportunity to create clarity for both employees and management around policies and expectations.

A well-written handbook (which reflects your brand, industry and business) can foster a stronger, more positive company culture, one in which policies are clearly defined and consistently, uniformly implemented. This is always a great influencer for morale and engagement!

A handbook does not need to be large, cumbersome or even printed out and bound. It can be an electronic file or can sit on a company intranet or SharePoint and be provided electronically when someone joins your business. You may refer to it in an employment contract and it is important to have documented acknowledgements that each employee has reviewed the handbook and agrees to follow the policies outlined.

When should a business create an employee handbook?

Ideally, a handbook should be formed at a company’s start, but it’s never too late to craft one. If you have ever pondered if you need a policy on bullying or harassment or you have found yourself frustrated that someone doesn’t know how to apply for leave – you need a handbook! It’s important to note it’s not a one-off process and it should be a living document that can change as your business grows and legislation changes. It can mitigate your risk and ensure that, later on down the line, you can avoid costly legal conflict. 

More than simply protecting the company’s bottom line, the real goal of an employee handbook is to create the kind of company culture needed for the business to thrive. It also helps create an environment where employees feel respected, helping them succeed as well as keeping staff engaged and motivated.

A handbook helps make your business a great place to work – and that’s good for business. Not creating and maintaining a handbook, however, is one of the top human resources mistakes companies make.

Purposes of an Employee Handbook

No matter the size of your business, a well-crafted employee handbook:

1. Details your mission, vision and values

A handbook is often the first touch point for new employees to understand your company culture, mission and vision and indeed the expectations you have of them in their role and how they can succeed in your business. It reflects how you conduct business while providing a framework for workplace behaviour and a roadmap on how to treat employees.

You want to hire employees who understand and embrace your mission and you want to make sure that when they join and are undertaking your onboarding process, they can be quickly made aware of your values and help your company move toward fulfilling your vision.

Whether it’s how to request time off from work, how to dress appropriately or the importance of refraining from drug and alcohol use, a handbook lets employees know what is expected of them while detailing what will happen if they fail to meet those expectations.

2. Ensures consistent enforcement of company policies

Not only does a handbook provide employee expectations, but also it creates a framework to guide your managers and leaders. Outlining how management will handle certain processes can be extremely powerful. Without a handbook, each department manager may do what they feel is appropriate versus following clearly defined and uniform company-wide expectations. Consistency is very important in any business and certainly in how employees and processes are managed.

3. Sets expectations for employee conduct and performance

With an easy-to-read and robust employee handbook, employees always know what is expected of them and how they can contribute to the business. They understand workplace policies and procedures. They know how management will address problems and complaints.

The handbook creates a shared repository for the business, so everyone knows what is important.  Clarity and a shared understanding increase staff confidence in the business and make their efforts seem worthwhile. This has the potential to heighten engagement and motivation.

4. Addresses employee expectations

As a business owner, it is important to set expectations for your employees. Just as important is that employees enter the employment relationship with clear expectations of their leaders. At a minimum, they expect clear communication and fair treatment that meets legal requirements.

By clearly defining company policies and setting a professional (and appropriate) tone for the workplace, a handbook demonstrates you understand employees’ needs and are committed to creating a positive work environment.

5. Minimizes risks

Clearly defining workplace policies and procedures can be the first step in defending a business from employment or other legal issues. Employment-related claims are often based on inconsistent treatment or lack of company policies and procedures.

Without a handbook in place, a business potentially faces heightened liability risks. These may include harassment claims, Unjustified disadvantage claims, wrongful dismissal claims and discrimination claims. A handbook sets clear boundaries for how issues will be managed and how disputes will be handled fairly and consistently.

6. Helps minimize conflict

When policies and procedures aren’t clearly communicated and consistently implemented, conflicts may arise, largely born out of confusion. It can be easy, in frustration to assume people “should just know not to do that” but, as we manage humans, it is always dangerous to assume. So don’t!

With clear statements on how we do things and clear expectations, conflict is more easily managed and you can clearly see when someone knows how to do something but has deliberately not adhered to the policies and procedures set down.

An employee handbook can often feel like one of those administrative tasks that can easily fall into the “too hard basket” but can provide an important tool for managing your teams, ensuring consistency and setting expectations from the get-go. Core HR can make the whole process of defining your policies and procedures and creating your employee handbook, seamless. We will pull together all the information from across your business, provide simple options for you and advise on what you need to include in your employee handbook. Contact one of our team to discuss how we can help!