Employee Handbook

What Is an Employee Handbook?

An employee handbook (also called a company handbook or staff handbook) is a written guide that helps employees understand everything they need to be successful in your workplace.

For instance, it provides guidance and information on a company’s:

• Mission, vision statement, and values
• Policies and procedures
• Workplace code of conduct

Staff handbooks also help protect employers against discrimination or unfair treatment claims by effectively communicating these policies.

What’s the Difference Between an Employee Handbook and a Policy Manual?

The primary difference between an employee handbook and a policy manual is the target audience. Staff handbooks cover a variety of key workplace policies, but it’s also necessary to have a separate, more detailed manual on hand for HR and leadership to follow.

Here’s a general overview of these two company guides:

• Employee handbook:  The intended audience is the employee, and it serves as a valuable resource to inform, empower, and protect.
• Policy manual:  The intended audience is a supervisor or HR professional, and this manual is used when you need more information or specific wording on rules or processes in the business.

What Should Be Included in an Employee Handbook?

Your organization’s handbook is specific to your company and its contents will vary based on your industry. However, most employee manuals contain sections similar to the ones outlined below.

Mission Statement and Values

This introductory section sets the tone for your employee handbook and conveys your brand. It helps employees learn about the company’s policies, history, culture, and values. It’s also a great place for a warm welcome letter from your CEO to set a positive tone for your employee manual.

Employment Policies

It’s important to include key policies about your organization that uphold your company’s work environment and set expectations. Company policies for an employee handbook may include:

• Communications policies
• Working hours, break allowance, and attendance
• Work-from-home or remote work guidelines
• New hire and offboarding policies
• Health and safety practices

Code of Conduct

In this section, you need to clearly outline how you expect your employees to treat others in the workplace. This creates the foundation of a safe and professional working environment.

You should address:

• Dress code. Is your business the smart casual type or formal business wear? Do you encourage dressing down on a Friday? Make sure employees understand the requirements when it comes to dress codes. If you have remote workers, it’s worth adding details around expectations for their appearance on client calls and business meetings online aka no pjs allowed!
• Cyber security. Your employees must understand what you expect from them to maintain the security of your business and any equipment they have access to.
• Social media and internet usage policies. Detail any policies regarding internet and social media use during working hours.
• Employee relationships. Workplace romances happen, so it’s a good idea to have a policy that outlines the expectations of employees if Cupid strikes in the office.
• Employment of relatives. Nepotism is something all businesses want to avoid. Make sure your policies around hiring family members and friends are clear in your handbook to avoid conflicts of interest.
• Conflicts of interest. Use the handbook to flag what counts as a conflict of interest and perhaps offer some examples so employees can be fully aware while working.

Company Procedures

Employee handbooks cover company procedures that teams must know how to handle as they arise. This includes:

• Performance reviews. Detail when these are held and what they typically cover.
• Promotions and raises. Note when promotion windows occur in your business and when managers consider raises.
• Injury reporting. Provide details of how employees can report injuries and where they can go to do this.
• Company grievances. Highlight how employees can raise grievances and who to speak to, whether that be the HR team, their line manager, or via an eNPS survey.
• Conflict resolution. Provide detail on how the business covers things like conflict and the options employees have if they need support.

Employee Compensation and Time Off

Your team can review the company handbook for general employee compensation information and related insights, such as:

• Paid time off (PTO). Clearly outline what employees are entitled to when it comes to paid time off.
• Payroll deductions. Note what applies to employees and why they may see payroll deductions in their paycheck.
• Overtime. Outline the policy for overtime and what employees can expect if they work more than their set hours.
• Military leave. Provide information on military leave and what this means for employees in your business.
• Bereavement leave. Share policy details around bereavement and note that your company is there to support workers.
• Workers’ compensation. Explain what this is and how it impacts your employees.
• Employee benefits. Give a breakdown of the benefits employees enjoy while working for your business and any caveats that your team must note.
• Family and Medical Leave Act (FMLA). Note that your business complies with this act to allow employees to take time off when needed for medical reasons.

Compliance Policies

Documented employee compliance policies help protect your organization and its employees while fostering an inclusive workplace. These are typically full documents themselves, so use your employee handbook to provide details of what policies are covered and where your team can find out more information.

For instance, you may want to include outlines of these policies and where team members can access them:

• Non-discrimination policies
• Harassment policies
• Equal Employment Opportunity (EEO) statement
• Disability and religious accommodations
• Employee rights

Acknowledgment Form

Organizations should ask their employees to sign and date an acknowledgment form noting they’re responsible for reading and complying with the handbook. You need to make it clear that the handbook is not an employment contract, and you should also state that your company has the right to revise it at any time.

What Shouldn’t Be Included in an Employee Handbook?

Whether it’s due to legal reasons or other concerns, there are a few things you shouldn’t include in an employee handbook. Here are some examples:

• Overly restrictive social media policies:  This may not only reflect negatively on your company, but it can also violate employee rights as given in Section 7 of the National Labor Relations Act.
• Rigid disciplinary policy language:  Disciplinary policies should include a disclaimer that states your company has the right to handle infractions individually, leaving room for unforeseen circumstances.
• Legal documents:  An employee handbook is not a contract. You should present non-compete clauses, non-disclosure agreements, and other legal forms separately.
• Jargon and complex language: Ensure that the employee handbook is easy for all employees to follow and understand. Use clear headings, subheadings and bullet points to break up information.

If you’re unsure about a section of your staff handbook, it’s worth consulting your legal team for further guidance.

How Long Is the Average Employee Handbook?

Your employee handbook should be long enough to feel informative and include the key information without going into too much detail.

Your employee handbook also needs to be specific to your organization. Using clear, concise language helps keep the page count down while ensuring the handbook is effectively communicated and understood by everyone at your company.

How Does an Employee Handbook Benefit Employees?

Your organization’s employee manual should clearly outline what the employer expects from the employee and what the employee can expect from the company. It’s typically distributed to staff on or before their first day of work so they can learn about your organization and prepare for employment.

It can also be a helpful resource after onboarding, as employees can refer to your organization’s policies when they have questions or want to review their benefits information.

How Does an Employee Handbook Benefit Employers?

An employee handbook keeps all company policies and procedures in one central place and helps the employer stay consistent in enforcing those policies and procedures. This can be essential if legal questions arise or if an employee breaks one of your company policies.

You can use staff handbooks as an anchor that serves as a constant central reference point. This way your employees can feel supported, and you’ve done your best to guide them.

Are Employers Required to Provide an Employee Handbook?

There’s no specific legal requirement for employers to provide staff handbooks. However, it’s a key tool for both HR departments and staff when addressing conflict and other issues.

Companies should distribute an employee handbook to every employee. We recommend uploading your handbook to your intranet or having a PDF document that you can share.

A company handbook communicates the rules. It holds everyone accountable to those standards while building trust and transparency between employers and their teams. Plus, they’re an essential part of employee onboarding.

Do Employees Have to Sign an Employee Handbook?

While not a legal requirement, it’s helpful to require every employee to sign a document declaring that they received, read, and will follow the rules outlined in the employee guide. This can help protect your organization if you must discipline an employee based on the policies and procedures you’ve communicated inside.