Top 5 Reasons To Develop An Employee Handbook

Do I really need an employee handbook?  This question comes up so many times, especially from small business owners, and the answer is YES!  But the reasons may not be what you think.

An Employee Handbook isn't just about having something you can show the attorneys to prove you had a policy documented, an employee didn't follow it, that's why they were fired, so you're not guilty of wrongful termination.  Sure, that's one reason and there are many more like that.  But the real reason that business owners, even small businesses, should develop an Employee Handbook is to save time.  Your time.  That's more of an incentive for you to do it now, right?  Don't wait until you run into problems to figure this out.  Lay down the ground rules from the get-go and you'll save a lot of time and headaches in the long run.  Here's how an Employee Handbook can help you do just that.

1. Sets expectations upfront.  Your new employees need to know what the procedure is for specific tasks and how to handle different situations, i.e., reporting a broken piece of equipment, collecting their paycheck, calling in sick.  Without this information, those new employees will be in your office every five minutes asking "how do I..."  or you'll talk to them about being late to work and they'll say they didn't know they were required to call in to inform you.  You can immediately set your expectations upfront by letting them know when hired how the business is run. 
2. Reduce training time.   The Employee Handbook can serve as the new employee's go-to guide when he or she has a question, instead of repeatedly asking you or their coworkers to answer the same questions.  Providing them with a way to check policies and procedures on their own will reduce the time it takes for them to learn about their new job. 
3. Avoid future problems.  When an employee does something wrong, the most common defense is to say they didn't know it was against company policy.  Having an Employee Handbook that is mandatory reading for all employees is the proof you need that a policy was in place and the employee was informed, should a lawsuit ever arise.  Requiring that each employee sign a form acknowledging receipt of the handbook and understanding that they are required to read it and comply with the policies in it, is your best defense.
4. Clarify pay and payroll questions.  Questions that most often come up have to do with pay and payroll - how often and when do your employees get paid?  How is overtime calculated?  Does overtime have to be approved in advance?  Will paychecks be cashed by the company?  Does the company provide salary advances?  An Employee Handbook that outlines all of these procedures will provide you a point of reference and help you avoid possible issues with employees by giving them the information in advance of any questions that may arise.
5. Consider policies you want to put in place.  The process of developing an Employee Handbook is a valuable exercise in determining what policies you want to put in place for your business, including paid time off, dress code, disciplinary procedures, employment of relatives, attendance and lateness, performance expectations and much much more.  Going through this process really helps you to think through how you want to run your business now and in the future.

Having an Employee Handbook is the best way to ensure that your employees understand what is expected of them, to clarify issues for all parties and to prevent future problems that may arise from misunderstandings of company policy.