Human Resources
5
 minute read

Here's Why Your Small Business Needs an Employee Handbook

Published on
August 23, 2024
Contributors
Bryan Burns
President
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If you feel a yawn coming on when you hear the words “employee handbook,” you’re not alone! While they may not be the most exciting things you’ve ever read or written, every business should have one. 

Employee handbooks—also called employee manuals or staff handbooks—support employee attraction and retention. By taking the time to think about policies and approaches to human resource management and spelling them out in an Employee Handbook, you are helping to ensure there are no surprises for owners, managers and employees. Everyone receives the same information and is on the same page!

How a good employee handbook can help your company:

Kickstart the onboarding process. A well-crafted employee handbook is an essential tool for onboarding new hires. It provides new employees with a clear understanding of the company's expectations, policies and culture right from the start. This helps them settle in faster and reduces the learning curve, allowing them to become productive team members more quickly. It’s part of employee attraction, as it sets the tone for the organization and diligence of your company. 

Distill the culture and history of your organization. Your employee handbook should serve as a window into the culture and history of your organization. By including engaging stories about the company's origins and evolution, the handbook can spark a sense of connection to the company that goes beyond the financial. 

Paint a picture of your mission, vision and values. Clearly outlining your company's values in the employee handbook is one of the most important steps. This helps new hires understand (and reminds the long-timers) what is important to the organization and guides their behavior accordingly. When employees know what the company stands for, they can see the connection between their day-to-day tasks and a larger purpose. This creates internal motivation to excel in their position and goal that their innovation and creativity should aim for. 

Consolidate relevant resources. An employee handbook captures the majority of Employee policies and procedures. Having this information in one place ensures that employees have easy access to the guidelines they need to follow, reducing confusion and simplifying compliance. It creates an easy and tangible place to return to for regular updates and check-ins when your company evolves. 

What should an employee handbook include?

In addition to the points mentioned above, an employee handbook should cover the following areas:

Safety: Detailed guidelines on workplace safety procedures to ensure a secure working environment.

Benefits and Compensation: Information about employee benefits, salary structure and any bonuses or incentives.

Equal Opportunity and Anti-Discrimination Policies: Clear statements on the company’s commitment to providing a fair and inclusive workplace.

Confidentiality and Data Protection: Policies on how to handle sensitive information and protect company data.

Grievance and Complaint Procedures: Steps for employees to follow if they have a complaint or need to address a grievance.

Workplace Conduct: Specific requirements to performing on the job related to attendance, dress code and substance abuse among others.

Do I really need one?

Yes, you do. In addition to being a key part of employee orientation and settling new employees, the act of putting your policies and procedures in writing helps you steer clear of potential legal issues down the road.

Employee handbooks also lay the groundwork for employees to feel like they are making meaningful contributions to something larger than themselves. Handbooks are an excellent tool for communication, whether it be a sense of purpose or technical information. Providing employees with relevant knowledge and purpose are key to attraction and retention. 

Where Do I Begin?

If the thought of creating an employee handbook seems overwhelming, we can help! HRO Core’s consultants are experts in employment law, HR best practices and the needs of small businesses. We can guide you through the process and ensure that your handbook is comprehensive, up-to-date and tailored to your specific requirements. Here are a few things we will help you do: 

Define your goals: We will provide professional advice and techniques for understanding the true purpose of your business, what it hopes to achieve and what keeps it running. This can involve important mindfulness and introspective exercises to make sure you’re steering your company towards the direction you dream of!

Gather Information: We’ve made quite a few employee handbooks in our almost 20 years of HR consulting. We know just where to look to collect all the necessary information about your company policies and procedures and how to make sure they meet all regulations. We can ensure you don’t miss a relevant area that could enrich the benefits of your handbook and business. 

Review and Revise: We know how often and important it is to regularly review and update your employee handbook to reflect changes in your company policies, employment laws and culturally-influenced best practices. 

Free up valuable time to focus on your business and contact us today. We’ll walk you through what is involved in creating an employee handbook specific to YOUR small business.

By taking the time to create a thorough and engaging employee handbook, you are setting the foundation for a well-informed, motivated and cohesive workforce. Let’s work together so you can start making the most out of this vital tool to shape the success of your small business!