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February 18, 2011 by Dianne Shaddock 3 Comments

How to Write an Effective Employee Handbook

Wondering how to write an employee handbook? Whether you’re an entrepreneur ready to hire your first staff or an established company who needs an updated employee handbook, there‘s a laundry list of items to consider including. This basic employee handbook template will help you start writing an employee handbook that clearly defines company guidelines. Here are key components to consider:

General Employment Information

An employee handbook for small business should include an overview of your general employment policies, which may include:

  • Employment eligibility requirements
    How to Write an Effective Employee Handbook
  • Probationary period policy
  • Job classifications
  • Job posting protocol
  • Work schedules
  • Policies for attendance and reporting absences
  • Flex scheduling or telecommuting guidelines, if necessary
  • Employee records
  • Transfer & relocation procedures
  • Termination & resignation policies
  • Union info, if necessary

Compensation

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Explain the deductions to be withheld from paychecks, including required state and federal taxes as well as deductions for voluntary benefit programs the employee may participate in. Also outline the company’s legal obligations for overtime compensation.

In addition, when you’re writing an employee handbook, spell out policies regarding timekeeping, breaks, pay schedules, performance reviews, salary increases, and bonus opportunities.

Leave

The handbook should also contain the company’s leave policy, especially when regarding legally-mandated situations, such as family medical leave, military duty, jury duty, or time off for voting. Also outline policies regarding holidays, vacations, illnesses, and bereavement.

Employee Benefits

When writing an employee handbook always include details for all company benefit programs, such as health insurance, retirement, etc. Include explanations of benefits your business may be required to provide, such as worker’s compensation, COBRA, and disability insurance.

Do you offer fringe benefits? Detail those as well, whether it’s reimbursement for business travel or tuition assistance.

Standards of Conduct

Outline the behaviors you expect in the workplace. If your small business is in a regulated industry or it has legal obligations to customers, clients, or vendors, ensure that employees are aware of their obligations regarding the laws.

Anti-Discrimination Policy

You are required to comply with the equal opportunity employment laws that bar workplace discrimination and harassment. Include information about these regulations and your expectations for how employees should comply with them.

Employee Safety & Security

An employee handbook for small business should outline the policies that create a safe, secure environment. These include OSHA laws and requirements, such as accident reporting, injuries, safety suggestions, etc.

The company security policy will cover the employee’s responsibility for protecting the physical environment (such as locking doors at closing time) and the information environment (such as locking down computers when they’re not in use.)

Technology

With tech playing an increasingly critical role in how businesses operate and communicate, it’s important to specifically state guidelines for the workplace use of software and computers, including social media use. If you collect personally identifiable information from customers, the employee handbook should also include steps workers must take to keep the information secure.

Non-Disclosures & Conflict of Interest

If you need to protect a trade secret (like your restaurant’s secret sauce) or prevent conflicts of interest, non-disclosure agreements (NDAs) and conflict of interest statements are a proactive way to protect your company’s proprietary info.

Media Relations

Small businesses owners and managers know how important it is to have a single, consistent voice to represent the company to the media. Let employees know how to handle questions from reporters or other media outlets, including bloggers. If you have a company spokesperson, list that person’s name and contact info in the media section.

Make your job as an owner or manager easier.

Will writing an employee handbook for your small business solve every personnel issue? Probably not. But writing an employee handbook that is clear and concise can go a long way toward reducing or preventing confusion among employees—which means you can spend more time leading the team instead of putting out fires.

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Dianne Shaddock

President and Founder at Easy Small Business HR
Get more tips on interviewing, hiring, managing and engaging your employees. Dianne Shaddock is the President of Easy Small Business HR, Employee Hiring and Managing Tips and the author of the eGuides, "How To Supervise:  What Your Boss Never Told You Before You Took the Job", A Step-By-Step Guide For New and Seasoned Managers and "How To Find and Hire the Best Employees".
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Latest posts by Dianne Shaddock (see all)

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Filed Under: Managing Employees, Policies and Procedures, Supervisor Tips and Strategies Tagged With: employee handbook

Comments

  1. Wayne Melton says

    December 10, 2012 at 13:52

    Nice employee handbook list of sections. I might add an “at-will” employment section and also some comments that the handbook does not establish a contractual relationship and may be changed at anytime by the company at its discretion.

    One issue I find is writing the handbook and then having it reviewed by an attorney to avoid problems. I was wondering what this type of review might cost?

    Anyone have any experience with the attorney cost on a handbook?

    Thanks
    Wayne Melton

    Reply
    • Dianne says

      December 10, 2012 at 15:40

      Thanks Wayne-

      The cost can vary. Any attorney’s out there that would like to give an estimate as to the cost to review a handbook?

      Reply

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