Employee Handbooks

By Libby Anderson

When it comes to managing employees, there are many situations that business owners don’t want to have to face. But, chances are, without the proper business tools, employers will find themselves in sticky employee relations situations.

As an employer, have you encountered any of the following scenarios:

1). An employee repeatedly asks for days off, pay at every holiday, and vacation days at random.

2). After being disciplined on a particular performance related behavior, an employee responds by saying, “I didn’t know it was against the rules.”

3). Customers complain repeatedly and business is lost because the service your employees provide is inconsistent and without purpose.

4). A staff member comes to work dressed for a night on the town instead of for a day at the office. Other staff members murmur among themselves about the fact that she should know better.

If you haven’t already faced these situations you might, unless you arm yourself, and your employees, with an employee handbook. Regardless of the size of your organization, an employee handbook is useful as an information source for:

• Employee performance and customer service expectations

• Work rules and policies

• Employee relations statements that promote retention and morale

• Company vision, mission, and purpose statements

• Details regarding benefits and salary issues

Handbooks are not policy manuals.

Policy manuals are for supervisors. Handbooks are for employees. And for a number of reasons having a handbook is a good idea. Other than helping to avoid the above-mentioned scenarios, employee handbooks “sell” the organization to employees. In addition, a well-prepared handbook will answer much of the routine questions that take up management time. Published policies and work rules in a handbook reassure employees that everyone is treated fairly and consistently and that everyone knows the expectations of conduct.

Developing an employee handbook is not difficult. You can either purchase a program to develop one on the computer (I recommend Policies Now available through Amazon.com), or you can write it yourself. What you need to consider most is content.

There are several items that are a must for your employee handbook. Employers use their handbook to communicate policies regarding sexual harassment, workplace violence, non-discriminatory practices, employment-at-will, e-mail/Internet use, conflict of interest, confidentiality, and legal rights under the law.

A list of conduct subject to discipline, including items such as sleeping or drinking on the job, theft, misuse of company equipment, and excessive absences or tardiness, should be included to avoid the “I didn’t know” response. Also included in that section should be a description of the disciplinary process.

Benefits such as health insurance, vacation/holiday pay, and compensation are important inclusions. In addition, specific customer service expectations and other expectations (such as proper work attire) need to be part of your handbook as well.

Finally, your organization’s mission, employee relations philosophy (i.e. open door policy), and vision for the future should provide a positive note for your handbook. A “welcome letter” from the head of the company is a nice touch as well.

Is your handbook legally safe? Despite all their good points, employee handbooks may create legal liability issues. That’s where your disclaimers come in. One important disclaimer is a statement that makes it clear that the handbook is not intended to be a contract and does not represent a contract between the company and employee. All verbiage within the handbook should support that statement. Another critical disclaimer should note that employment is at the will of the employer and either the employer or the employee may at any time terminate the employment relationship with or without cause. A disclaimer reserving the right to forgo progressive discipline in certain situations is important as well.

If you have never had an employee handbook in your organization, the initial presentation of the handbook will determine how well employees accept it. It should be presented positively and time should be given to staff for questions. Once you have the handbook in place, this is one of the first documents any new employees should receive. When employees receive a copy of the handbook, they should be required to sign a statement that they have read and understand the material in the handbook.

Employee handbooks aren’t forever. Be sure to review yours every 8 to 12 months to insure accuracy and if necessary provide revisions to all staff members.

Employee handbooks often set the tone of the employment relationship between you and your staff members. A positively written, informative, and timely handbook can improve morale, save you time, and promote consistent employee performance.

Libby Anderson is a human resource consultant and trainer. She can be reached via e-mail at edahrsvcs@aol.com.