Writing an Employee Handbook It's a big undertaking but one that will protect you. Here's what you need to include.

Having established policies written in a handbook will eliminate confusion as to what you expect from your employees. As an owner of small company, you may wish to set policies yourself and take full responsibility for drafting enforcing, reviewing and updating all information in the employee handbook. If, however, you run or manage a large business, this duty usually falls upon the shoulders of the human resources department/employee relations manager.

Either way, make sure that all policies, procedures, practices, rules and regulations are decided upon in advance, and present ideas in a simple and direct manner by choosing short words that define the company's position.

During the orientation process, each employee should receive a copy of the handbook, and any updated versions should be presented to existing employees to keep a constant flow of communication going. Sufficient feedback from employees will also help management understand exactly what kind of information would be useful to include to help an employee be effective on the job.

Items usually included in a handbook are:

  • Absences
  • Accidents
  • Benefits
  • Cleanliness
  • Coffee breaks
  • Complaints
  • Confidentiality of work
  • Decorum
  • Salary deductions
  • Discrimination
  • Dismissals
  • Emergencies
  • Fire
  • Intoxication
  • Military service
  • Misconduct
  • Office supplies usage
  • Ordering of supplies
  • Organizational chart
  • Orientation
  • Overtime
  • Parking for employees
  • Paydays
  • Pay periods
  • Pension plans
  • Personal mail
  • Personal phone calls
  • Personal visitors
  • Probationary periods
  • Professional ethics
  • Promotions
  • Re-employment rights
  • Resignations
  • Retirement
  • Salary calculations
  • Schedule of work
  • Sick leave
  • Smoking policies
  • Tardiness
  • Temporary employment
  • Time cards
  • Work evaluation
  • Work habits
  • Work periods
  • Working hours
  • Worker's compensation

Make sure when the handbook is being drafted that all practices are consistent with the company's growth plans reflect current company philosophies and objectives.

Also, two disclaimers should be included in the introduction to the handbook:
1. The handbook is not an employment contract between the employee and the organization.
2. Employees may be dismissed at the discretion of the company.

Including these disclaimers in your handbook will help you to avoid future litigation from terminated employees. When the handbook is finished, it should be reviewed by legal counsel to make sure that it's consistent with current federal, state and local employment regulations.

The employee handbook is important to your organization's growth and structure because it communicates to the employees just what the employer expects and what the company will provide in terms of a productive working environment. More importantly, it forces the employer to be consistent in the enforcement of company policy instead of allowing it to shift from person to person or situation to situation. Employees like to feel that they will receive equal treatment, regardless of the situation or position. This feeling of equality promotes a team atmosphere that's important to productivity.

Perhaps the greatest benefit of an employee handbook is its ability to focus the attention of employees on the performance of their jobs. It relieves the worries that accompany an employees's lack of understanding concerning policies and benefits.

Excerpted from The Small Business Encyclopedia.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business News

Your Old Apple AirPods Can Soon Act as an Over-the-Counter Hearing Aid, According to the FDA

The new software is compatible with the Apple AirPods Pro and accessible through iOS — for free and now FDA-authorized.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Leadership

From Elite Athletes to Tech Titans — Discover the Surprising $100-Million Habit That Leads to Extraordinary Success

Success comes from mastering focus, eliminating distractions and prioritizing what truly matters.

Side Hustle

'Hustling Since Middle School': She Started a Side Hustle on Facebook Marketplace — Then a 'Game-Changer' Grew It to $25,000 a Month

Leena Pettigrew's "entrepreneurial spirit" inspired her to build a business with earnings that outpaced her full-time income.