While onboarding, it is important to communicate the company’s policies and procedures with the new employees. They will also be eager to know about the company’s values, working environment, mission, vision, etc. But, how can a company effectively communicate these to their employees? How will they ensure that the employees have read it? For these questions, the employee handbook is the ultimate solution.

What is an Employee Handbook?

An Employee handbook is a detailed document that explains the company’s policies, procedures, mission and vision. Sometimes, an employee handbook is also referred to as a company handbook or employee manual. It is generally given to employees during the onboarding process.

Legally, companies are not required to provide their employees with Employee handbooks. But, having an employee handbook will make the onboarding much smoother and increase the business’s professional image. The employee handbook will act as a virtual HR to the new employees, helping them understand the company’s work culture, code of conduct, and rights and obligations.

Importance of Employee Handbook

What’s the value of an employee handbook if it’s not legally mandatory? This is a common question that many people have. The following points will help you find out why a company needs an employee handbook:

• Clarity in communication: An employee handbook ensures company policies, procedures and expectations are communicated to all employees.

• Uniformity: It can create uniformity across the organisation in how policies are applied. An employee handbook can prevent favouritism and inconsistencies thereby creating a fair and equal workplace.

• Better onboarding: A good employee handbook is part of a smoother onboarding process. It can give the new hires a complete picture of the company.

• Increased Professionalism: Having a well-written employee handbook shows the company’s professionalism and integrity.

• Clarifies Expectations: The handbook explains job expectations and performance standards which help employees understand their roles and responsibilities better.

Key Components of Employee Handbooks

An effective employee handbooks contain the following components:

Company Overview

• Mission and Vision
• Company Values and Culture

Employment Policies

• Equal Employment Opportunity
• Anti-Discrimination and Harassment Policies

Compensation and Benefits

• Salary Structure
• Health and Wellness Benefits
• Retirement Plans and Other Perks

Workplace Conduct

• Dress Code
• Code of Conduct
• Use of Company Property

Attendance and Leave Policies

• Work Hours and Attendance
• Vacation and Paid Time Off
• Sick Leave and Medical Leave

Performance and Development

• Performance Reviews
• Training and Development Programs

Safety and Security

• Workplace Safety Guidelines
• Emergency Procedures

Technology and Communication

• Internet and Email Usage
• Social Media Policy

Conflict Resolution and Grievances

• Reporting Procedures
• Disciplinary Actions

Common Mistakes While Drafting Employee Handbook

There are some common mistakes that most people make while drafting an employee handbook. Make sure you check for these mistakes mentioned below and make changes accordingly.

• Using Unclear Language

Writing policies in unclear language can lead to misinterpretation and inconsistent application. For example, instead of saying “Employees should dress professionally” say “Business casual attire, collared shirts with pleated pants are required.”

• Not Updating Regularly

An outdated handbook can cause confusion and misapplication of policies especially if there have been changes to laws or company procedures. Make sure to update the handbook whenever necessary. 

• Overloading with Information

Too much information or irrelevant information can make the handbook overwhelming to read. Instead of detailing every little procedure, focus on key policies and provide summaries with references to further information.