An effective employee handbook offers employees a consolidated guide regarding organizational values, policies, procedures, guidelines, employee rights, wellness programming, and employee benefits and perks.
For employers, an employee handbook streamlines onboarding, articulates the organizational mission, answers frequently asked questions (reducing HR overload), and provides much-needed legal protection in the event of an employee dispute regarding harassment, discrimination, termination, or pay.
Here, we’ll outline the six major reasons your organization should have an employee handbook to protect both you and your employees.
Supports Onboarding and Provides an Organizational “Compass”
Especially for organizations that use a preboarding process to deliver onboarding resources before the first day of employment, the employee handbook can be a new hire’s first encounter with your organization’s culture, values, mission, and vision. Your employee handbook should capture why the work that you do is essential, purposeful, and unique, and should regard employees as meaningful contributors to that process. When this section of your employee handbook is thoughtfully prepared, it invites new and existing employees to align with your organization’s mission and overriding aims, fostering mutual investment in the goals of the organization and a sense of excitement about moving forward together. With a clear and compelling sense of how and why the organization was established and what it aspires to achieve, employees are more likely to uphold its values, policies, and procedures.
Sets Clear Expectations for Employees (Opportunities & Prohibitions)
An employee handbook clearly lays out the policies and procedures within your organization, demonstrating everything from how to use timekeeping software to how to request PTO or contact HR regarding a specific workplace issue. In a single document, it provides easily accessible information on everything employees need to succeed within your organization. Although your employee handbook should clearly articulate which activities are prohibited within the organization, it’s also an opportunity to emphasize fair and equal access to the growth-oriented resources and opportunities the organization provides. Within policies and procedures, for instance, you will likely outline pathways to promotion, job training, as well as access to wellness programming or other resources that support work-life balance.
Promotes the Benefits and Perks Your Organization Provides
Since the COVID-19 pandemic has altered benefits offerings and workplace configurations for many organizations, it’s essential to provide up-to-date information about the benefits, perks, and programming your organization offers to employees. This is particularly true in a competitive job market where organizations in the private and public sectors are offering more appealing benefits packages and increased flexibility, all while working to upgrade company culture and employee-centric programming.
For the sake of hiring, onboarding, and employee retention, your employee handbook (especially when regularly updated) gives employees everything they need to know about 401(k) benefits, health insurance plans, paid parental leave, vacation time, and more. If your organization has instituted a wellness program or offers additional mental health support, the employee handbook is a great place to highlight these offerings to demonstrate your organization’s investment in employee well-being, satisfaction, and engagement.
Establishes Management Protocols and Best Practices
The employee handbook should be a valuable resource for managers, supervisors and others in leadership roles, especially when it comes to problem-solving and decision-making in response to workplace issues. With a handbook that clearly communicates policies regarding conduct & behavior expectations, compensation, and logistical policies, managers are more likely to follow proper procedures and reflect the leadership style your organization promotes.
For employees, the employee handbook also clearly outlines all employee rights and entitlements as established by federal, state, and local labor laws – including everything from protections under the Occupational Health & Safety Act (OSHA) to leave entitlements through the Family Medical Leave Act (FMLA). It also communicates where employees can turn in the event of a workplace issue, providing clear contact information for organizational managers who can facilitate in-house review and resolution of any disputes or workplace complaints.
Mitigates Compliance Risks & Employee Claims
An up-to-date employee handbook provides all necessary labor law and entitlement information to employees, but can also be used as legal protection against claims of noncompliance. It demonstrates that your organization is aware of (and has internally communicated) all the necessary information regarding FMLA leave, disability leave, payroll policy and other concerns in a manner that is aligned with local, state, and federal laws.
In the event of an employee claim of harassment, discrimination, or a payroll discrepancy, a comprehensive and legally compliant handbook demonstrates that policies, procedures, and rights were properly reported to employees and verifiably reviewed by employees. This legal protection is further enhanced when employers retain signed confirmation of each employee’s review of the employee handbook (a practice we recommend).
Our related article, “How Employee Handbooks Help You Avoid Legal Headaches,” offers further advice on handling disclaimers, employee signatures, employee classification, and more.
Enjoy Streamlined Onboarding and Compliance with Cello HR
An up-to-date employee handbook keeps your organization legally protected while showcasing the policies, programming, and benefits that support your employees. Cello HR offers expert HR consulting and HCM technology to streamline and integrate your hiring, onboarding, scheduling, payroll, and timekeeping within a single consolidated platform.
Ready to create an employee handbook that protects your organization and optimizes onboarding? Contact us today to start our collaboration.