Developing an Employee Handbook (That People Actually Read)
Employee handbooks are critical in today’s business world, especially for people-oriented businesses like professional services firms, agencies, and even tech companies. These documents serve as a valuable resource that outline company policies, procedures, and expectations. Ultimately, employee handbooks help to create a positive work environment and ensure legal compliance.
However, developing an employee handbook that people actually read and find useful can be a challenge, especially for business owners and operators who find themselves stuck in the HR swamp.
In this article, we will explore best practices for creating an employee handbook that engages and informs employees effectively.
The purpose of employee handbooks
The employee handbook generally includes a welcome letter outlining the intentions behind the handbook, a table of contents, the company’s core values, and the policies the company finds most important and pertinent. A brief company history may also be included.
The handbook may be a simple Google Doc, or it could be a designed PDF. For a designed document, we recommend looking into Canva templates on Etsy like this one.
Before diving into the process of developing an employee handbook, we must first understand its purpose. An employee handbook serves several important functions:
Communicating expectations
Providing information
Promoting consistency
Ensuring compliance
Let’s take a closer look at each function.
1. Communicating Expectations
An employee handbook clearly outlines the company's policies, procedures, and expectations regarding conduct, performance, and work-related matters. It helps set consistent standards and ensures that all employees are aware of what is expected from them. Clear expectations are essential building blocks of a strong employer brand.
2. Providing Information
The handbook acts as a central repository of information on various topics, such as benefits, leave policies, safety guidelines, and other important resources. It helps employees access relevant information easily and answer common questions without needing to seek individual guidance.
3. Promoting Consistency
By establishing uniform guidelines and practices, an employee handbook promotes fairness and consistency across the organization. It helps avoid ambiguity and ensures that all employees are treated equitably.
4. Ensuring Compliance
An employee handbook plays a crucial role in keeping the business in compliance with employment laws and regulations. It can include policies related to equal employment opportunities, anti-harassment, anti-discrimination, and other legal requirements specific to the industry and location.
Best Practices for Small Business Employee Handbooks
To develop an employee handbook that engages and informs employees effectively, consider the following best practices:
1. Keep it Concise and Clear
The best Employee Handbooks are unique to the company and are written in language that an employee would actually enjoy reading. A lengthy and overly complex handbook can be overwhelming for employees. Use bullet points, headings, and subheadings to organize information and improve readability. I've seen Handbooks super long (96 pages long) and employees just signed off on it and then asked me all their questions. I typically recommend handbooks be no longer than 40 pages or so, depending on the size of the organization.
2. Tailor it to Your Business
While it's important to include mandatory policies, make sure to customize the handbook to reflect your small business's unique culture, values, and practices. This personal touch can make the handbook more relatable and engaging for employees.
3. Regularly Update It
Business practices, laws, and regulations evolve over time. We recommend updating the handbook on a consistent cadence (such as once a year). This way, it remains accurate and up to date. Communicate changes effectively to all employees to keep them informed. Employees should sign an acknowledgment of the handbook when they are first hired, but also each time the handbook is updated. You could also have employees sign an acknowledgment of the handbook during a quarterly performance review.
4. Include Real-Life Scenarios
Make the handbook more engaging by incorporating real-life scenarios or examples to illustrate policies or expectations. This can help employees understand the practical applications of the guidelines and make them more relatable.
5. Seek Legal Review
To ensure legal compliance, consider consulting with an employment attorney or HR professional to review your handbook. They can provide valuable insights and help you avoid potential legal pitfalls.
6. Make It Fun
A handbook could include fun statements about holidays or time off such as this excerpt from Austin Fraser's handbook: "To get over all the turkey, eggnog and general overindulgence, Austin Fraser shuts down for three days over Christmas." For inspiration, check out this article from Gusto about creative examples of fun employee handbooks.
Elements of a Good Employee Handbook
Your employee handbook should include everything your new hire needs to know about being a good employee. Below is an outline of elements your employee handbook should include:
Introduction and Welcome
A brief overview of the company's history, mission, and values.
A welcoming message from the CEO or HR, expressing appreciation for the employee's contributions.
Employment Policies
Employment status (full-time, part-time, temporary, etc.).
Equal employment opportunity and non-discrimination policies.
Harassment and bullying policies.
Accommodations for employees with disabilities.
Anti-retaliation policy.
Code of Conduct
A clear statement of expected behavior, ethics, and professionalism.
Guidelines on appropriate dress code and personal appearance.
Work Schedule and Attendance
Office hours and workdays.
Rules for punctuality and attendance.
Reporting absences and requesting time off procedures.
Remote work and flexible work arrangements (if applicable).
Compensation and Benefits
Salary or wage information and pay frequency.
Overtime policy.
Employee benefits (healthcare, retirement plans, vacation, etc.).
Bonuses and incentives (if applicable).
Reimbursement procedures for business expenses.
Leave Policies
Vacation and paid time off (PTO) policies.
Sick leave and family medical leave.
Bereavement leave and other types of leave.
Leave request and approval process.
Employee Performance
Performance evaluation process.
Performance improvement plans (if applicable).
Expectations for professional development and training opportunities.
Employee Relations
Communication channels within the organization.
Conflict resolution and grievance procedures.
Whistleblower policy (encouraging employees to report unethical or illegal behavior).
Information Technology and Security
Acceptable use of company technology resources.
Data security and confidentiality policies.
Bring Your Own Device (BYOD) guidelines (if applicable).
Safety and Emergency Procedures
Workplace safety guidelines.
Emergency evacuation procedures.
Reporting accidents and incidents.
Social Media and Public Relations
Social media usage guidelines (personal and professional).
Representing the company in public and media interactions.
Termination and Resignation
Voluntary and involuntary termination procedures.
Exit interviews (if conducted).
Return of company property
Acknowledgment and Signature
Include a statement indicating that employees have read and understood the handbook.
Provide a space for employees to sign and date to confirm their acknowledgment.
Employee Handbook Acknowledgment
To establish that employees have received, read, and understood the contents of the employee handbook, it's important to include an acknowledgment form. This form should be signed by each employee and kept in their personnel file. The acknowledgment form typically includes:
Employee Name: Clearly state the employee's full name to ensure accurate record-keeping.
Date of Acknowledgment: Include the date on which the employee signed the acknowledgment form.
Confirmation of Receipt: The employee confirms that they have received a copy of the employee handbook.
Understanding and Agreement: The employee acknowledges that they have read and understood the handbook's contents and agree to comply with the policies and guidelines outlined within.
Including an acknowledgment form helps show that you’ve taken reasonable steps to inform employees about the handbook and its policies. This is helpful in case of disputes or non-compliance situations.
Employee Handbook Welcome Statement
An employee handbook welcome statement sets the tone for the document and creates a positive and inclusive atmosphere. It should express the company's appreciation for the employees' contributions and how they contribute to the success of the business. The welcome statement can include:
Introduction: Begin with a warm and welcoming introduction, expressing gratitude for the employees' dedication and commitment.
Company Values and Culture: Emphasize the company's core values, mission, and vision, and how they align with the employees' goals and aspirations.
Support and Development: Highlight the company's commitment to supporting employee growth, providing training opportunities, and fostering a positive work environment.
Open Communication: Encourage open communication and express that feedback and suggestions from employees are valued and encouraged.
Conclusion: End the welcome statement by expressing enthusiasm for having the employees as part of the organization and reiterating the importance of the handbook as a valuable resource.
The welcome statement helps create a positive first impression, instills a sense of belonging, and emphasizes the company's commitment to its employees' well-being and success. Here is an example of a good employee handbook welcome statement:
Welcome to the team!
Our philosophy is based on our desire to develop policies and procedures that respond to your needs and those of our business. We believe that each employee contributes directly to our growth and success, and we hope you will take pride in being a member of our team.
As you know, there have been several changes in our business environment over the past several years. These changes have created the need for new and different approaches to the way we conduct business.
This Handbook was developed to describe some of our expectations for our employees and to outline the policies, programs, and benefits available to eligible employees. You should familiarize yourself with the contents of the Employee Handbook as soon as possible, for it will answer many questions about employment with (Company).
We hope that your experience here will be challenging, enjoyable, and rewarding.
Again, welcome!
Sincerely,
(Name of CEO or Head of Organization)
Employee Handbook Requirements by State
It's important to be aware that state and local laws may require specific policies or information to be included in an employee handbook. Some common areas to consider include:
Anti-Discrimination Laws: State-specific anti-discrimination laws may require including protected classes and the company's commitment to equal employment opportunities.
Leave Policies: State laws often have specific requirements regarding sick leave, family leave, and other types of leave that should be addressed in the handbook.
Wage and Hour Laws: State-specific wage and hour laws may require information on minimum wage rates, overtime policies, meal and rest breaks, and other related topics.
Safety and Health Regulations: Certain states have additional workplace safety and health regulations that should be incorporated into the handbook.
To ensure compliance, it's crucial to research and understand the specific requirements in the states where your business operates. Consulting with an employment attorney or the fractional HR professionals at Same Page can help you navigate these complexities effectively.
The Goal: Craft an Employee Handbook that People Actually Read
Need help doing this? Same Page HR helps you get back to the business you love. Work with us to develop an employee handbook, or to take care of all your HR administration with our fractional HR services.
