- Welcome statement
Frequently, companies will use a welcome message from the president or owner to welcome the employee to the company and to provide a brief history or summary of the business operations.
- Company's philosophy regarding employment practices
The handbook should clearly state the company's position on equal employment opportunity, nondiscrimination, harassment and at-will issues. At-will employment allows both employer and employee to terminate the employment relationship at any time.
- Rules and procedures
The employee handbook should contain clear statements regarding the company's rules and procedures and the employees' expected conduct. In addition, these policies should outline the consequences employees can expect for failure to follow policies.
- Benefit information
The employee handbook should provide a brief overview of all of the benefits provided by the company, even though employees may be provided with more detailed information through other documentation; for example, in the case of medical insurance coverage. In addition, certain benefits, such as vacation, need detailed procedures.
- Ensure consistent treatment of employees.
Written policies and procedures outline performance and behavioral expectations and the consequences for violating these expectations. While there occasionally may be extenuating circumstances warranting an exception to a policy, written policies are designed to ensure that employees are treated the same given the same circumstances or situations.
- Improve the company's legal defense
By publicly communicating the company's policies, the company can improve its ability to defend itself against legal claims made by employees. For example, the Equal Employment Opportunity Commission published guidelines which state that employers can minimize their liability for the wrongful conduct of their employees, including supervisory and managerial personnel, with respect to unlawful sexual harassment if they publish a written policy prohibiting sexual harassment in the workplace. If the policy contains a procedure offering employees a way to address their complaints regarding sexual harassment with company personnel other than their supervisors, the company is also protecting itself.
- Comply with the law
Several federal laws require employers to develop and disseminate written policies to employees. For example, the Family and Medical Leave Act (FMLA) requires employers with handbooks to include in them policy statements on employees' FMLA rights. Certain federal government contractors are required to develop written affirmative action policy statements, as well as drug-free workplace policies.
When developing an employee handbook, some simple rules should be observed. While several of these rules may seem fundamental, they must not be taken lightly.
- Write in a simple and uncomplicated style
Most companies have employees with different levels of education. Some may be college-educated while others may not have graduated from high school. The employee handbook needs to be a communication tool that can be understood by all employees. Written policies may not hold up as a legal defense if they were not written in a manner to be easily understood by all employees.
Should you decide to use an attorney or a consultant to help in the preparation of a handbook, ask to see examples of their work to observe firsthand their writing style.
Depending upon your workforce, you may want to consider an employee handbook in a second language.
- Syndicate the risk
Should you desire to draft your own employee handbook, have someone qualified review the end result. Either a certified employment attorney or a qualified human resources consultant will be capable of rendering useful opinions on the document.
- Obtain input
At some point during the development process, obtain input from a number of supervisors or managers. Find out what kind of employee issues they deal with on a daily basis and make sure those situations are addressed in the handbook.
- Distribute the handbook to all employees
All employees should be given a copy of the employee handbook and be required to read it. A handbook has little value if it is not distributed. If a handbook is distributed for the first time, or if there are substantial amendments to an existing one, an employee orientation meeting is the most effective way to ensure that the policies are explained consistently. Any time an employee handbook is distributed, an acknowledgment of understanding form should be signed and dated by every employee and maintained in their personnel files. This can become a strong defense in the event of a legal action that the employee received the handbook, read and understood it, and agreed to abide by the company's policies and procedures.
- Periodically review the handbook
An employee handbook should be reviewed at least annually to ensure compliance with state and federal laws and to ensure that the company's current philosophy toward important policies and benefits are accurately reflected.
Despite the advantages and benefits of written policies, there are some pitfalls.
- Inconsistent treatment of employees
If supervisors and managers do not consistently apply the policies, there is a greater likelihood that claim of unfair treatment or discrimination will occur.
- Unintended promises
Poorly written policies can create implied contracts, resulting in disgruntled employees and even legal claims.
- Outdated policies
Unless reviewed and updated regularly, the most well-written policies can become outdated and fall out of compliance with the law.
All of the above pitfalls can be overcome. The benefits of well-written policies far outweigh the disadvantages of poorly written policies or no policies at all.
When constructing an employee handbook, the topics should follow a logical order. The following suggested format groups policies in related categories.
- Terms and Conditions of Employment
At-will Employment Status
- Misrepresentations
Modifications of Terms and Conditions
Handbook Is Not a Contract
Enforcement of Policies
Reporting of Policy Violations
- Employment
Equal Employment Opportunity
Criminal Convictions
Employment of Relatives
Career Advancement
Personnel Files
Employment References
- Compensation
Pay Dates
Performance Reviews
Pay Advances
Recording Work
Time
- Benefits
Vacation
Sick Leave
Bereavement Leave
Jury Duty
Insurance Plans
Retirement Plans
- Operating
Breaks/Meal Periods
Hours of Work
Attendance and Punctuality
Conflicts of Interest
Substance Abuse
Violence and Weapons
Harassment
Solicitations/Contributions
Employee Suggestions
Unacceptable Performance or Conduct
Disciplinary Guidelines
- Separation
Voluntary Resignation
Job Abandonment
Medical Separation
Performance-Based Termination
Misconduct-Related Termination
Employee handbooks have wide acceptance in both large and small companies. Workplace behavioral studies have shown consistently that employees want to know what is expected of them. Today's busy manager or business owner often does not have the time to verbally describe every policy, workplace procedure and benefit in the detail that it deserves. The employee handbook can be an effective solution in providing employees important and useful information.
Copyright (c) 1996-2008. Automotive Service Association. All rights reserved.
In today's environment, companies of all sizes use employee handbooks to effectively communicate valuable information to its employees. Employee handbooks can serve a number of purposes, including provide an orientation to new employees and an ongoing reference to existing employees.
