The Importance of Creating an Employee Handbook - June 2022

Fri, Jun 24, 2022 at 8:00AM

John Kenney, CEO, Cotney Consulting Group

Getting your employees all on the same page requires that you onboard them correctly from the beginning with your company policies and procedures, vision and culture and how to stay compliant on the job. The best way to accomplish this is by creating an all-inclusive employee handbook. A good employee handbook is essential to help employees throughout their tenure with your company.

The Goal of An Employee Handbook?

An employee handbook should give your employees a detailed look at company policies and key guidelines, procedures and benefits. It should set clear expectations for employees, defining their rights and your legal obligations to them.

It might initially seem like a daunting task to create an employee handbook from scratch, but it will help you create transparency and consistency across your company. If done correctly, it can help you avoid lawsuits and claims, including wrongful termination.


Components of an Employee Handbook 

The introduction is a guidepost for the procedures and policies you will include in the handbook. It introduces your employees to the company culture, values and mission. Your introduction should answer questions about what sets your company apart, how it was established and what your organization is passionate about, encouraging a sense of pride and belonging which can help an employee become productive faster. 

Communicate what you expect from your employees and provide a clear understanding of their responsibilities. The manual should serve as their compass for organizational policies and procedures. It should tell them about timekeeping, reporting and safety. For example, it
tells them how to request paid time off and advises them about whom to contact if they will be absent or whom to go to with questions about company policies. Outline pay periods, work hours, logistics and timekeeping requirements. Include entitlements to federal
and state leave, including the Family Medical Leave Act (FMLA) and jury service leave. By clearly communicating such policies, you help eliminate confusion.

Showcase the benefits: if you offer paid time off, a 401(k) and health insurance, including all of it in the employee handbook. That way, employees will know their eligibility requirements. Ensure compliance with state and federal laws by communicating these obligations
and entitlements to employees through your manual. It also shows that you strive to be compliant with these regulations.

Tell employees who to turn for to help. Employees need to know whom to report workplace violence to, how to obtain work-related
assistance and get answers to their questions. Taking this step in your handbook makes employees more likely to keep their complaints
in-house. Having all these details in place is a great way to shield your company from conflicts and potential litigation. Its value should
not be lost, even as you juggle customer service needs and hiring personnel.

Be clear about what employees can expect from management and leadership. Your employee handbook should include objectives and leadership styles and management practices to foster a healthy employee-management relationship

Ensure key company policies are communicated clearly and consistently. Policies should always be followed consistently and a handbook accurately communicates those policies on conduct and behavior, employment, compensation, etc. Managers, too, can refer to the manual when making decisions on policies or answering questions. That ensures accuracy and consistency.

Employers do occasionally face lawsuits from current and former employees. Your employee handbook is one of the most valuable documents when that occurs. It will assist in defending against employee claims. Provide it to your attorney or third-party investigator to show that your organization exercised reasonable care toward employees. In addition, including a signed acknowledgment page indicates that the employee had the opportunity to become familiar with company policies, ask questions and know whom to turn to if a problem arose.

The essential purpose of having a good employee handbook, above serving as a handy reference for your staff, is to keep your business on track. A handbook is not a procedure manual. However, it is your opportunity to create clarity for your employees and management
team around policies and expectations.

A well-written employee handbook can help you foster a more positive and more robust company culture by clearly defining policies and showing how they are implemented uniformly. In addition, it provides a firm foundation for your overall business.

A handbook does not have to be a bound, hard copy. It can be presented as an electronic file and stored online, then shared through a company’s intranet site. You will still want documented acknowledgment that every employee has reviewed the handbook and agrees to
follow its policies, so always have a signature acknowledgment page documented in your employees’ file.

While an employee handbook should be developed when a company is new, it is never too later to craft one. And keep in mind that it is not a one-time process. The handbook is a living document that should be updated and maintained correctly, reflecting changes to the law.

The true goal of a company handbook is to protect a company’s bottom line and create the type of company culture needed for your business to thrive. It is an essential tool in supporting HR compliance because it helps mitigate risks that could lead to expensive legal
actions. It also helps employees feel respected and helps them succeed.

Failing to design and maintain an employee handbook is one of the top human resources mistakes businesses make. No matter the size of your company, a well-crafted employee handbook allows employees to uphold your values and helps your company move forward with its vision. It reflects how you conduct business from the inside, provides a framework for workplace behavior and outlines how employees
should be treated.

If you need help designing your employee handbook, reach out to a professional with the resources to provide your company with templates, sample job descriptions, law alerts and helpful checklists.

FRM

John Kenney has over 45 years of experience in the roofing industry. He started his career by working as a roofing apprentice at a family business in the Northeast and worked his way up to operating multiple Top 100 Roofing Contractors. As CEO, John is intimately familiar with all aspects of roofing production, estimating and operations. During his tenure in the industry, John ran business units associated
with delivering excellent workmanship and unparalleled customer service while ensuring his company’s strong net profits before joining Cotney Consulting Group. If you would like any further information on this or another subject, you can contact John at
jkenney@cotneyconsulting.com


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