Importance of Having an Employee Handbook

In our most recent episode of this month’s HR Insider, we discussed the importance of why businesses should have an employee handbook.

Employee handbooks are vital for various reasons. First, it let employees know how the company operates, what is expected out of them, and showcases the benefits of working for your company compared to others.

From attendance policies to sick leave, your employee handbook is your upfront contract to your employees. It sets clear expectations of what is expected from your workers.

Here are some other important reasons why your business should invest into developing an employee handbook:

  • Introduction – This is letting your employees know your company’s mission statement, core values, and the working environment. This is very important for your employees to know and will help them adapt to the companies values very easy.
  • Expectations – Letting employees know what exactly you and the company will expect from each individual employee. A well-written handbook provides employees with a clear understanding of their responsibilities. The handbook also serves as a compass for the organization’s policies and procedures.
  • Company Policies – The handbook will accurately help you convey your policies with your handbook and will assist your employees to consistently practice these policies throughout the company. This will also help your managers when making decisions on disciplining employees who have broken company policies.
  • Benefits – In your employee handbook, it should showcase the wonderful benefits you offer. Such as your retirement plan whether it be a 401(K) or any other retirement plan, bonuses and vacation time.
  • Protection – Most importantly, it will protect you, your managers, and your company when dealing with claims relating to harassment, misuse of funds, and attendance issues. By not having an employee handbook could prove detrimental to your business.

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