Develop an Employee Handbook

Ensure that your employees know your mission and adhere to policies and procedures.

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Far too often small business management has a tendency to overlook creating and distributing an employee handbook. This practice is a big mistake according to Linda Swerling, principal of Brookline, Mass.-based Level II Solutions.

"Not only does a handbook educate employees on what is expected, in many instances not having one can actually put a company at risk," she says. "For instance, in many states there is legislation that mandates that you distribute specific information to your staff and an employee handbook is a very convenient way to meet legal requirements.

A prime example of a strict legislation requirement occurs in Massachusetts, where any company employing six or more people must define and distribute its sexual harassment policy to employees annually. "People should just think of it as a means of creating clarity, so that employees know that they cannot deviate from a standard without special permission," Swerling says. "This also creates fairness because there is not discrimination among the ranks."

Daunting Development
An employee manual is not something that companies should haphazardly assemble so that they simply meet industry or legal guidelines. Instead, the benefits it can yield warrant that management spends time making sure that it produces a progressive document representative of the organization's objectives as an employer.

One aspect that many people want to know is how detailed they should be in creating a manual. According to Swerling, most labor lawyers suggest that businesses simply define policies to the point of clarity.

"How you write it should reflect the regulation or law and be stated in such a way that the policy could be defended in court should an employee sue. For instance, in at-will employment states, you do not want the handbook to have a contractual feel because it is possible that courts will see it as a contract," she says. "This is why the recommendations of your employment lawyer should drive detail, but it should still be in assembled in an easy-to-read fashion. You want to encourage employees to read it, and provide a format where people can zero in to find answers quickly."

Swerling adds that employers also need to make sure that when they make the decision to put together and distribute a handbook that it is not a one-time commitment. "It needs to be updated regularly, and someone needs to be responsible for making sure that the manual follows all of the law changes as well as company benefit changes or any other aspects that impact employees," she says. "At the very least, companies should review their handbook annually, and distribute it to every employee."

Put Into Practice
With the responsibility of maintaining the employee handbook at Coldwell Banker Commercial TradeMark Properties Office Manager Christine Bruckner fully understands the inherent difficulties.

"There are two major challenges when creating a handbook. The first is to develop content that can easily be understood by all levels of employees," Bruckner says. "The other major challenge is to make the content interesting to your employees so that they will continue to refer to the handbook even following their initial orientation."

According to Bruckner, it is important to have policies in place so that employees understand the proper procedures when dealing with vendors and contractors. "In this field, many employees work outside the traditional office environment and it is critical to outline procedures involved so that employees working off site have the proper expectations for their work," she says. 

In developing and maintaining its handbook, Bruckner has found it useful to use an outline of all handbook topics to ensure the inclusion of all essential information. "This requires knowing the industry laws and regulations as they apply to your company and asking employees for input," she says. "Remember the handbook is for employees, so it is best received when you spend time with them to discuss the content."

Bruckner adds that while handbooks are often part of new employee orientation, it is important to make sure they have a continued purpose. "It needs to serve as an FAQ for employees so that they can quickly find the answers to routine questions," she says.