Whether you're a small business owner who's been up and running for years or an entrepreneur preparing to make your first hire, implementing an employee handbook is an important part of creating a positive work environment.
What is an Employee Handbook?
An employee handbook is a document which outlines various policies, best practices and expectations for the company. It is typically reviewed with new hires as part of their onboarding process and used as a resource to refer back to when issues arise.
Why Does My Small Business Need a Handbook?
The purpose of an employee handbook is to provide clear policies and expectations for your team.
Benefits include:
A well written handbook will promote a positive, safe, and effective work environment. Outlining operations and guidelines in your employee handbook will lead to an organized workplace and may even lend you more credibility as a business owner.
Creating a handbook requires you to be proactive and think through situations before they occur. The practice of creating a handbook may bring to light ongoing issues which should be addressed and adjusted as part of the process.
An effective employee handbook will also serve you well against any legal action should it arise.
Note: Most states do not require businesses to have an employee handbook, but some states do require certain workplace safety and other legal policy statements be visibly portrayed in the workplace. Be sure to check your specific state requirements.
Consider the following when writing your employee handbook:
Keep It Simple: Be clear and concise. Don't use unnecessary jargon. This should not appear to be a complicated legal document, it's a practical guide for your team.
Make It User Friendly: Organize the document properly. Consider getting feedback from an employee on its readability before creating the final draft.
Set The Tone: Use language that mirrors the language and tone of your company culture. Emphasize your mission and values.
Make It Visually Appealing: Utilize short paragraphs to make this an easy-to-read document; use visual aids if appropriate.
Be Positive: Document expectations in positive language (instead of "Don't do xyz"). Paint a positive visual of the type of team member and work environment your company is committed to. Include language around employee appreciation and how your workplace benefits your team (work-life balance etc.).
Key Takeaway: Creating an Employee Handbook is a win-win. It gives your team clarity and autonomy, and it gives you accountability and protection if things go wrong.
What to Include in Your Employee Handbook
The specifics of your employee handbook will depend on your industry and the needs of your business and team. The following are some suggested topics to include in your handbook.
Overview: State the purpose of the handbook. This can also include a personal note from the owner/CEO about the history of the company and its intentions for the future.
Statement of Mission, Vision & Values: Clearly define your mission, vision, and values to remind your team of why you do what you do. Providing examples of how your values are used in the everyday operations of your business can also be helpful.
Organization Chart: This is a good idea if you have more than 1-2 employees. An org chart can help to clarify what the responsibilities of each role are, and who reports to who.
Team Expectations and Responsibilities: This can include specific job responsibilities, sales goals, or just general expectations for the workday and how team members interact with each other and clients.
Code of Conduct: Set clear boundaries of acceptable behavior at the workplace as well as a process for accountability if issues arise. This may also include dress code if applicable.
Performance Reviews: Provide an expectation for how often employees will be reviewed, as well as clear performance guidelines so that each team member knows on what grounds they will be evaluated (this can be provided in the expectations & responsibilities section or in their specific onboarding information).
HR Processes & Guidelines: It's common for a small business not to have a designated HR person, but that does not eliminate the need for HR guidelines. Provide a clear process for filing a complaint or bringing forth an issue.
Privacy/Confidentiality Statement: Depending on your industry and nature of work, you may need a privacy and/or confidentiality statement to maintain client trust.
Schedule and Logistics: Include hours of operation, shift times, meal and break guidelines etc.
Time Off: Note paid holidays throughout the year as well as team members' PTO/sick leave and the process for logging these days off.
Benefits: List the details of any benefits you offer as well as where the employee can access the necessary info to enroll in and utilize their benefits.
Workplace safety: Depending on the nature of your work, you may need a safety statement.
Anti-harassment & Discrimination Statements: You can find examples of these on your local government sites. It's always a good idea to take a clear no-tolerance policy on any type of harassment or discrimination.
At-will Employment: Clearly state that either your employee or you can terminate the employment agreement at any time.
Compensation: Give details on when you process payroll, how your employees can access their online payroll account, and note that each team members specific compensation amount will be provided to them in writing.
Acknowledgement Statement: Conclude your handbook with an acknowledgement and agreement to abide by these guidelines. Be sure to have all employees sign the agreement and keep this form on file.
Who Is Responsible for Updating the Handbook?
If your small business has an HR person, they should be the one to write, monitor, and update the employee handbook.
If you do not have an HR person, you as the owner will be responsible. Be sure that all employees have a copy of the handbook and have signed it in agreement with the guidelines. The handbook should be updated periodically, and it may be necessary to have employees re-sign each year after updates are made.
Bottom Line: Setting clear expectations for your employees is a crucial part of creating a prosperous work environment.
Having clear guidelines and practices puts your team at ease, because they know what to expect.
Implementing an employee handbook is a simple way to document your expectations and hold your team accountable.
Need help drafting an employee handbook for your small business? We can help. Send us a message to get started.
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