- the cost of having an employee handbook written,

- the number of employees (I only have one employee),

- the idea that having written policies would cause more problems than not having written policies, and

- I tell the employee everything they need to know and if they have a question they can come and ask me.

Handbooks are not required as a regulation or law. However, some laws and regulations require posting in the place of business – for example Minimum Wage. The way handbooks are written could be a deterrent, i.e. if it is too legal no one will read it or care to read it and it then is a waste of time. If it is too simple, it gives the impression of “fluff” and is not taken seriously and is then a waste of time.

I tell clients that Handbooks are a guide for both the company and the employees. It helps define the way the organization does business and how they treat one another. It gives the employee a sense of fairness and consistency because it says that everyone is treated the same way. It tells the court (if there is litigation) that policies are in place and they are followed.

Does it matter how big or how small the company is? If you only have one employee, you probably don’t need a full blown handbook. That being said, however, as you start growing your business and you hire your first employee, you start to develop policies – sometimes without even realizing it. So, having a simple handbook from the very beginning helps keep you focused and consistent.

For example, you have one employee and that employee seems to always have a question. “What are our holidays?” “When do I get paid?” “Do I get vacation or sick time?” “Do I have to wear a uniform or can I wear jeans?” “Mr. Smith made a pass at me, what should I do?”

These questions may not come all at the same time but over a period of time. Your answer becomes the policy of the company and as you add more employees, you need to give them the same information you gave your first employee. Sometimes it is hard for me to remember what I did last week, much less having to remember what I told an employee three months ago. That is why a handbook is helpful.

Another reason is that employees are going to learn what is accepted and what is not within the company whether you have a handbook or not. You have to determine how you want them to learn about the company. Do they learn from a disgruntled employee, an irate customer, an easy going supervisor, or do they learn from the written policy that you have put in place?

Remember, however, if you have a policy you must follow it. Do not put policies in your handbook that you cannot or will not follow. You should review your handbook on a regular basis and you have the right and obligation to up-date the handbook to comply with state and federal laws and to address issues as they arise.

Finally, the cost is minimal compared to what a lawsuit might be. Handbooks help minimize the liability associated with having employees as it indicates consistent management styles, fairness to all employees, and compliance with the laws.

If you have a handbook, good for you! If you don’t, you might want to look at putting a simple handbook together.

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Source: Effortless HR Software's HR Blog | Employee Handbooks – Yes or No
]]> http://www.effortlesshr.com/blog/employee-policies/employee-handbooks/feed/ 2 http://www.effortlesshr.com/blog/employee-issues/employee-handbook-essentials/ http://www.effortlesshr.com/blog/employee-issues/employee-handbook-essentials/#comments Fri, 11 Jul 2008 16:31:40 +0000 Lola Kakes http://www.effortlesshr.com/blog/?p=23 As a Human Resource consultant, I have been asked, “How important is it to have an employee handbook/manual” And the add-on question is, “What goes into an employee handbook”

The first question can be pluses and minuses to a business owner – employment lawyers, consultants, and managers of organizations all disagree on the value of employee manuals. This disagreement comes from whether or not a manual is considered by the courts to be a contract for employment. Also, if not written correctly, the manual may inadvertently guarantee job security.

However, on the plus side, a handbook or manual can help increase morale. This is because when your employment practices are in writing, your employees feel they are being handled consistently and fairly. A well-written manual can save time because the employee know they can get the information they need about benefits, policy, procedures, etc. without interrupting their manager. In addition, handbooks and manuals provide the company with documentation that they are in compliance with important laws and regulations, that if not actively placed in the manual might be ignored (due to not knowing about it) or might prove to be unenforceable as you had not informed your employees about it.

So, the essentials of what goes in your manual would be:

• Compliance with all the applicable laws and regulations – both federal and state and in some instances local.
• Although it may be helpful to review other handbooks for ideas and layout, you need to customize the manual to your company and include the policies that are part of your organization. Someone Else’s handbook may not be appropriate to your organization.
• Only include policies in your handbook that you can support and follow. It will do you more harm if you put a policy in place and don’t follow it.
• It is okay to have disclaimers. Content for disclaims vary due to state regulations, so check those state requirements before adding a disclaimer.
• Make sure the disclaimer you use is clear and placed to be noticed.
• Where appropriate, leave room for your managers and supervisors to handle violations of policies. Be able to allow them flexibility based on their judgment and experience.
• Always require a signed acknowledgement that the employee has reviewed and received the manual. This signed document should be placed in their personnel file with a copy to the employee for their records.
• Date any revisions and have the employee place them in their manual with a new acknowledgement signed and filed.

Remember, an out of date handbook is not only useless but may also create a risk to your company. Stay current on laws and regulations and keep your manual up to date.

An example of a not-so-great but funny employee handbook can be found over at the Punk Rock HR Blog

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Source: Effortless HR Software's HR Blog | Employee Handbook Essentials
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