An employee handbook is a vital part of your business, but it can also be overwhelming to develop when you consider all of the information that should be included.
An employee handbook sets the tone for your new hires and can (should) be a valuable resource for existing employees to go to review policies and find pertinent information that they may have forgotten, such as your FMLA policy or disability benefits. Further, some federal, state, and local laws require you to inform employees in writing about certain policies, so you should familiarize yourself with those requirements by visiting the U.S. Department of Labor (DOL).
Whether you are starting your first employee handbook, or you are revamping your existing handbook, take a look at a few of the must-haves to make sure you have a complete handbook that will protect you legally and give your employees a thorough understanding of your company and the expectations you have for them.
1. Organizational information
Before you hired them, your employee likely did some research on your company. They probably skimmed your website's "About Us" section or maybe "Liked" your Facebook page to get regular updates in their newsfeed, but they probably don't have a full understanding of your company's mission, values, and vision for the future. Your employee handbook could include a letter from an owner or leader of your business welcoming new employees to the company and giving them deeper insight of your values, company culture, history, and business objectives. It could also include a basic organization chart so that new employees understand the basic hierarchy and organizational structure.
2. Compensation and benefits
Compensation and benefits are likely two of the major factors that impacted an employee's decision to work for you. Your employee handbook should clearly communicate your payroll structure (weekly, biweekly, monthly, etc.), break allowances, part- and full-time schedule and requirements, overtime policy, salary increases, performance reviews, and to the extent they are available, any bonus, stock option, or commission opportunities.
This section of your handbook should also outline any additional benefits that you may offer to your employees, such as health, dental, vision, and life insurance, retirement plan options, and wellness programs. Be sure to include the basic eligibility requirements (do you offer benefits to both full- and part-time employees?), enrollment terms, and eligible life events.
3. Code of conduct
The code of conduct section of your handbook truly sets the tone for your employees. Here, you can discuss your general ethical and behavior expectations so that your employees begin their employment with you with a clear understanding of what is and is not acceptable. In this section, you can include things such as:
Dress code and grooming standards
Substance abuse and smoking policies
Internet and/or email use policies
Communication with the media policy
You should also include compliance with any required governmental laws that may be required by your industry, such as securities laws, bribery, or conflict of interests. Because this section is so important, it should be written clearly, concisely, and without an over-abundance of legal jargon.
4. Leave of absence policies
Your employees will need to take time off from work at some point during the duration of their employment, and they should have a clear understanding of your Leave of Absence policies. This should include an outline as to how an employee earns and schedules time off, as well as a schedule of any included paid holidays. If your business stays open on holidays, you'll also need to address how employees will be compensated for this time. This section should inform employees of vacation, sick, or paid time off options. Some leave of absence policies are required by law such as FMLA, jury duty, military leave, and time off to vote, therefore, they are required to be included in your employee handbook.
5. Equal employment and non-discrimination policies
As mentioned earlier, most employers are legally required to comply with, document, and inform your employees of several equal employment and non-discrimination laws. The list can vary by state and industry, so working with an attorney will be critical to ensure you cover all your bases. In most states, your non-discrimination policy should include verbiage that informs employees they are protected from discrimination based on age, sex, race, religion, national origin, pregnancy, sexual orientation, or disability both during the hiring process and throughout their employment with your company.
6. Workplace safety
Your employees should know the policies and procedures you have in place to ensure their safety while on the job. Not only is it ethical to ensure your employees' workplace safety, but it's also required by law—the Occupational Safety and Health Act (OSHA), to be exact. OSHA requires you to provide a working environment that does not have recognized hazards that cause, or could potentially cause, death or physical harm to your employees. Your employee handbook should go into detail about what you will do to prevent injury and illness, as well as what your employees are required to do, such as reporting accidents or potential safety hazards and complying with all applicable safety policies.
To learn more about your business' requirements, visit OSHA's website by click here.
7. Other applicable policies
Depending on the nature of your business, you may need to include any other miscellaneous policies that apply to your employees and/or your specific industry. This can include policies such as:
Company vehicle use
Company credit card use
Social media use
Networking and entertainment
Cell phone and other electronic devices
The last thing that should be included in your handbook is an employee acknowledgement page. You will want to keep a signed copy for each employee on file. Their signature acknowledges that they have read and understand your company's policies and procedures. Developing a comprehensive employee handbook can be a substantial, but important task, so make sure you work with the right members of your organization that can provide proper insights, and an attorney to ensure you develop a legally sound document.