An employee handbook ensures that everyone working at your small business understands their rights, responsibilities, and workplace policies. Having an employee handbook not only helps maintain consistency and compliance, but it also creates a positive work environment by defining unacceptable behavior, explaining necessary safety protocols, and articulating shared company values.
Why should your business create an employee handbook?
Your handbook is the first opportunity your organization has to establish a healthy work culture by outlining the company's history, goals, vision, and values in one place. It can also minimize your risk should any unemployment or legal issues.
Employers can also clearly establish their expectations so an employee understands their role and what their employer expects of them. If at any time an employee has a question, they can refer back to the handbook or quickly identify the next steps to have their questions answered.
Finally, employee handbooks can keep human resources professionals, managers, and those in leadership positions accountable for following set guidelines regarding disciplinary procedures. The handbook can help with employee engagement, burnout prevention, and minimize conflict.
[Read more: Does Your Small Business Need an HR Department?]
Which policies should you include in an employee handbook?
There are certain must-have policies every organization should include in their employee handbooks regardless of the industry it is based in. At-will employment statements should be front and center to reiterate that both the employer and employee can terminate the established work relationship for any reason at any time. Anti-harassment and nondiscrimination policies are also essential to include in employee handbooks, as they are often directly related to federal, state, and local laws.
The employee handbook should also include a section outlining employee benefits, including paid time off and family leave, recognized holidays, insurance eligibility, workers' compensation, and bonuses. Timely updates to consider when creating an employee handbook for today's work landscape include sections dedicated to COVID-19 guidelines, workplace safety requirements, and newly established remote work policies.
Organizations may also include specific dress codes and grooming policies. Though these policies may relate to safety requirements and mandatory uniforms, employers should ensure their dress code policies are not discriminatory and be willing to make modifications or exemptions related to an employee’s religious accommodation.
[Read more: 4 Things Every Employee Handbook Should Cover]
Legal considerations when drafting an employee handbook
The employee handbook should clearly outline policies that align with laws such as anti-discrimination regulations, wage and hour rules, and leave entitlements. Include information on employee protections under these laws and associated government entities, including the following:
- The Americans With Disabilities Act: This U.S. civil rights law prohibits discrimination against individuals with disabilities across employment, public accommodations, transportation, and communications.
- The Equal Employment Opportunity Commission (EEOC): The EEOC enforces laws prohibiting workplace discrimination based on factors such as sex, race, national origin, religion, and color, as outlined in Title VII of the Civil Rights Act of 1964.
- The Occupational Safety and Health Administration (OSHA): A federal agency under the U.S. Department of Labor, OSHA sets and enforces standards to ensure safe and healthy working conditions. The agency provides guidelines, training, and support to employers and employees.
- The Fair Labor Standards Act: This federal law establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full- and part-time workers in both the private and public sectors.
The employee handbook should clearly outline policies that align with laws such as anti-discrimination regulations, wage and hour rules, and leave entitlements.
Employee handbook templates
Creating an employee handbook may seem like a big undertaking, but employers can benefit from easy-to-use templates to guide their writing, include these from the following companies:
- Betterteam: After downloading Betterteam's template and inputting the necessary information where applicable, you can create and distribute your employee handbook.
- Xtensio: Employers who want more creative freedom with their employee handbooks might consider a full-package template like the one offered by Xtensio. Users can incorporate images, videos, graphs, and charts to customize the handbook to their specific brand and needs.
- Document360: If the formality of traditional employee handbooks that are printed or digitally saved seems easily forgettable for new employees, employers might prefer a knowledge base software like Document360 that allows employee handbooks to exist as a website. Document360's software also enables users to save multiple versions of essential items that can be reverted to previous versions so important information is never lost.
- Guru: Customizable templates like this one from Guru offer great examples of an employee handbook. In addition to conversational language throughout, the employee handbook template informs the employee of what the purpose of the handbook is, why it matters, what's included, and it offers resources for remote and hybrid employees.
- Indeed: Like a traditional employee handbook, Indeed's template is organized into eight sections with clear headings that can be easily edited. For convenience, it's available for download as a PDF or Microsoft Word document.
- ClickUp: ClickUp offers 10 different templates, allowing you to select the one that best fits your business and team needs in a format that suits your workflow. Built with user convenience in mind, the ClickUp Advanced Employee Handbook provides 11 sections, each with added tips and resources for comprehensive guidance.
- Adobe: With dozens of templates to choose from, Adobe Express allows you to build a colorful and custom employee handbook in minutes. Each template is fully customizable, allowing you to add a logo, change colors, and add important information to each page.
How to choose the best employee handbook template for your business
Creating an employee handbook might seem like a big task, but with the right resources, it can be straightforward and effective. Here are a few things to consider when choosing an employee handbook template for your business:
- User experience: Choose a service that simplifies the process instead of adding unnecessary complexity. The ideal tool should have a clean interface, clear instructions, and helpful support. That way, you'll spend less time figuring out the software and more time creating a helpful resource for your team.
- Custom features: Every company has its own culture and policies, and your employee handbook should reflect that. Look for a service that offers customization options, allowing you to tailor language, tone, and policies to suit your business's unique needs.
- Legal changes: Your employee handbook should comply with current legal standards, so choose a service that keeps up with employment laws and regulations. Some services provide alerts for legal changes, ensuring your handbook remains up to date without the need for you to personally monitor legislation.
- Cost: There are options for every budget, ranging from free basic templates to premium packages. Assess your needs and determine if the price matches the features provided, as investing a little extra upfront can save time and help you avoid legal issues later.
How often should you update your employee handbook?
Keeping your employee handbook updated, relevant, and compliant with legal standards is essential. Set time aside to review it at least once a year or whenever significant changes occur, such as updates in laws, company structure, or changes to benefits packages.
If you decide not to select a service that monitors legal changes, it's important to monitor local, state, and federal legislation, since failing to comply with these regulations can result in serious consequences.
When making changes, engaging employees in the process is important for gaining perspective and clarity — their feedback can be incredibly valuable. By offering a collaborative approach, you can create a handbook that truly reflects your company culture and supports the needs of your employees.
[Read more: 4 Human Resources Tools for Small Businesses]
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