Most employers think the employee handbook is of no purpose. If you are one of those, you need to think again. There are many good reasons to have an employee handbook.
However, creating and maintaining an employee handbook is a challenging task. Having an employee handbook helps companies shield their organization from conflicts and litigations.
In this article, let’s discuss the top five benefits of having an employee handbook. Before that, let’s understand what an employee handbook is.
What is an Employee Handbook?
An employee handbook, also known as an employee manual, provides employees with an overview of the organization’s employee policies, guidelines, and benefits. In short, an employee handbook provides employees with a clear view of legal obligations and rights.
An employee handbook also protects organizations from employee lawsuits and wrongful claims.
An employee handbook should be made available as an online file that is easily shared. When employees and management have quick access to the handbook, they make sure to follow all the policies and guidelines.
Now, let’s see six benefits of having an employee handbook in place.
5 Key Reasons Why your Business Needs an Employee Handbook
Defends your Company from Employee Lawsuits
An employee handbook plays a key role in protecting an organization against employment claims such as overtime compensation, leave policy, harassment, discrimination, breaks, and other violations. When a company is sued for such wrongful claims, the first thing your lawyer asks for is an employee handbook.
Sets Expectations for Employees
It is quite essential to set clear expectations for all employees. It’s a crucial job of the human resources team to help new hires understand what the company expects from them. This may include using mobile phones during business hours and usage of the internet on office laptops or desktops. This way, by setting expectations for employees, they will know what not to ask.
Poor management of employees and their paychecks badly affect the company. Studies show that delaying employees’ final paychecks for more than 72 hours will badly cost the employer in terms of reputation and business. A handbook comes to the rescue by providing the right information to managers in the absence of HR.
Introduces Employees to Company’s Culture, Mission & Values
Today, workplace culture has become vital when running an organization. A company needs to provide a friendly and enjoyable workplace for all employees equally. Having an employee handbook helps you introduce your work culture right at their onboarding.
The introduction part of an employee handbook includes the company’s vision and mission statement. This effectively communicates the mutual goals and expectations for employees.
Defines Organization’s Goals
The goals, vision, and mission of the company should also be the goals of employees. As discussed in the above para, an employee handbook helps you explain mutual goals and help them set their own goals to achieve them.
Educates Employees about their Rights
The employee handbook is designed to ease the HR team’s work of explaining each employee’s benefits and policy, such as 401k, health, tax etc. to each employee.
Additionally, an employee handbook is the best way to showcase the paid leave, parental leave benefits, and sponsored benefits and motivate them to participate in them.
Ensures Compliance with State & Federal Rules
An employee handbook demonstrates that the company adheres to all state and federal laws.
Every company that desires to improve its employee management and reputation needs an employee handbook. Now, let’s see some key points to be included in an employee handbook.
An employee handbook should consist of the following points:
- Company’s policies/code of conduct
- Company’s history, values, vision, and mission
- Dress code, working hours
- Benefits/working policy for full-time & part-time employees
- Resignation & termination process
- Sick time, vacation time, unpaid leave
- Leaves encashment
- Anti-harassment policies
- Privacy & Security information
- Non-compliance with the company’s rules
Thus, a company needs to create and maintain an employee handbook for many reasons.
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