As a Sarasota small business owner, establishing human resources policy may seem both unnecessary and intimidating. However, creating good policy might be one of the most critical tasks you undertake, both to give strong direction to your team and to protect yourself from a lawsuit. An employee handbook is an important part of your overall policy.
The key to the term “human resources” is that you are employing real people, with different personalities, work ethics, and ideas. While blissful team work is possible, so is occasional conflict and problems with interaction. Experts estimate that $359 billion in paid hours are wasted annually, spent resolving conflicts which arise from unclear guidelines regarding workplace behavior. In any size organization, that is lost productivity and money.
A well-crafted Employee Handbook can go a long way towards easily solving everyday conflicts and misunderstandings about how to behave in the workplace; as well as to ensure the highest productivity possible.
What is an Employee Handbook?
An employee handbook is a document that relays important workplace information in a clear and straightforward manner. It outlines rules regarding behavior, employee and customer interaction, and day-to-day workplace culture. A well written handbook improves inter-employee communication and establishes clear expectations.
Here are a few significant reasons about why your business needs an employee handbook:
- To Define Your Company Mission and Culture:
An employee handbook is not simply a set of rules, it is also a statement of goals and aspirations – what your company represents, and where you are going. An effective handbook is the core document that introduces your new hires to the company culture, and inspires them to work to become a part of that culture. Having everyone on the same page encourages productivity, growth and success. - To Ensure Compliance with State and Federal Laws: Every company, no matter the size, is expected to follow applicable laws and regulations. An employee handbook effectively communicates these laws to your employees. Topics ranging from emergency medical procedures, military leave policy and required break times are covered in this section.
- To Defend Against Employee Lawsuits and Claims: Unfortunately, in modern society, employee lawsuits are common. Disgruntled employees can cause a world of trouble for a company, so it is important that a professional familiar with workplace law should review and vet your employee handbook. This ensures that all the rules and policies outlined in the employee handbook are both completely lawful, and legally binding. In the event of a lawsuit, a consistently enforced employee handbook will support your stance that the company is a diligent employer that took reasonable care in communicating the workplace rules to the disgruntled employee. The employee signature will also show that the employee had full knowledge of these policies at the outset.
- To Communicate Company Expectations of the Team: A well-written employee handbook outlines what the company expects of a new team member, and provides rules for all employment activities such as payroll, time off, breaks and chain of command. The handbook informs new hires on how to interact with human resources, as well as expectations regarding safety, punctuality, and proper interaction with other employees.
- To Communicate Benefits and Perks: A comprehensive employment handbook discusses all the perks and rewards the company offers, such as 401K programs, parental leave, or profit sharing. From financial incentives to health insurance coverage, the handbook should clearly outline the company benefits of employment. Equally important is a clear outline of how an employee can lose their perks and benefits, or what actions may disqualify them from participating.
- To Provide Guidance: An employee handbook serves as an informative tool for employees who have suffered a hostile work environment to identify the right trusted party and chain of command to report their claim without fear of reprisal. The employer wants to settle these issues before they become legal claims involving entities outside the organization.Overall, an employee handbook is a necessary tool to formalize workplace procedures, inform employees of how the company works, and give them assurances that the company values them. For an employer, it provides protections by outlining unbiased and across the board rules to be followed and enforced.
If you are looking for guidance on how to write an effective handbook for your company, call the experts at People HR Solutions. We are committed to helping employers to create an environment where employees can thrive and productivity and growth can ensue.
