Basics of an employee handbook
By BuyerZone.com Editorial Staff - BuyerZone.com
Basics of an employee handbook
Want to prevent chaos in the workplace? Is the new guy in accounting bogging your HR director
down with constant questions about vacation time or benefits? Would you like to reduce
your chances of a being hit with a lawsuit because a disgruntled employee “didn’t
know” about your company’s policies? To address these scenarios and countless
others, the solution is simple – create an employee handbook.
An employee handbook documents your policies and procedures – everything from workplace
behavior to employee reviews and, gulp, grounds for termination. It should be clear, concise,
compliant with applicable laws, and leave very few questions unanswered.
The format of your employee handbook isn’t as important as the content. While a
neat, professionally-bound manual with the company logo is nice, a single-stapled document
strategically placed in a common area such as an employee breakroom is just as effective.
Here are just some of the critical areas you should address:
- Welcome aboard! Introduce your company’s mission statement at
the beginning and briefly explain the purpose of the manual.
- Employment guidelines. Describe the eligibility for employment, the
importance of respecting co-workers and your sexual harassment policies, and the 90-day
employment evaluation period.
- Policies and procedures. Confidentiality is essential for both proprietary
company data and employee information. You should also detail compensation (withholding
taxes, performance reviews), personal safety (emergency procedures), placement of government
posters (safety, equal employment), and general policies (parking spaces, dress code,
smoking).
- Benefits. Don’t be surprised if this is the section most employees
skip towards; it’s always on their minds. Document eligibility requirements (exempt
vs. non-exempt employees), health and dental plan premiums, employee retirement plans,
stock options, workers’ compensation benefits, vacation and holiday schedules,
and COBRA.
- Use of company property. Make sure to mention – in no uncertain
terms – that phone systems, Internet, email, and even office supplies are only
for business use. If you allow employees some leeway with personal calls or Internet
surfing, set some clear limitations.
- Company leave. It’s crucial to detail your business’ policy
for the various types of absence. By law, you must allow employees to serve jury duty
with pay. What used to be “maternity leave” is now “family leave” as
the number of stay at home fathers grows. Also explain how many sick days employees receive,
how long they get for bereavement, and what their benefits are for short-term and long-term
disability.
- Disciplinary actions. Never a comfortable subject, but one you can’t
ignore. Have a documented system in place for conflict resolution and warnings for violating
company policy. If these steps don’t work out, include sections on at-will employment
and grounds for termination.
A Human Resources Outsourcing
(HRO) representative or a Professional
Employment Services (PEO) vendor can create an employee handbook for you as part
of their service offerings or as a stand-alone option. They also have access to lawyers
who will review the content and ensure it’s compliant with federal, state, and
local laws.
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