People Management & HR

Why You Need an Employee Handbook

  • 4 min Read
  • January 8, 2021

Author

Escalon

Table of Contents

Every company should have an employee handbook that includes its policies and programs, but many businesses still hold out on creating one. A handbook describes the company culture and values, defines processes and benefits, and helps you solve disputes and answer employee questions. It provides employees with information related to the organization’s mission and goals in a written format. Here are a few of the reasons why companies should have an employee handbook in place.

Communicate Expectations




Having an employee handbook shows that you understand employees’ need for information. Your employee handbook outlines your compliance with employment legislation and how you will address complaints or issues. It is a great way to communicate the company’s policies and practices with your staff. It can also guide new employees through their first days and months at your company.

You can use the handbook to communicate how you expect employees to behave and perform at work and what they can expect from you. Putting company rules in writing can reduce misunderstandings and promote transparency between employers and employees. A handbook can also help staff members plan a vacation or parental leave.

Share Employee Benefits




A handbook ensures that employees are aware of all the benefits provided by the employer and their eligibility requirements. It also informs employees about various types of paid and unpaid time off offered by you. Staff members can read about employee benefits like paid lunch breaks, health insurance or remote work options.

An employee handbook can help you build a positive workplace culture and employee loyalty. It sets consistent policies throughout the entire company and ensures that all employees are getting the same benefits.

Helps With Unemployment Claims, Other Lawsuits




A comprehensive and compliant employee handbook can help you maintain a harmonious workplace and shield your company from legal trouble. Written company policies and procedures can help you deal with lawsuits. You can use them as evidence at the time of an unfair treatment claim or employee dispute. If an employee gets terminated for violating a policy, you can show proof (handbook) that the employee already knew it, thus defending yourself.

Introduces Staff to Culture, Values




An employee handbook ensures that the company policies are clearly communicated to new employees. It also helps you communicate the goals and values of the organization to employees. A social media policy can help prevent damage to a brand image by employees since they are already aware that they can be held liable for any online misconduct.

Makes Running the Business Easier




Drafting a handbook during the early stages of your business can help you determine the culture you want to create. Having the same rules for all employees and some general guidelines can help you deal with specific situations. Therefore, you should review your handbook frequently and update it when needed or if a new law is passed. A good handbook serves many purposes, like:

  • Setting expectations for new hires
  • Sharing updated company policies
  • Making training and enforcement easier
  • Ensuring employees are treated consistently
  • Helping ward off workplace disputes and conflicts



Simplify Onboarding




An employee handbook helps companies set standards and positive employee culture. It can also help your team settle in faster so they spend less time wondering about policies and more time focusing on their new roles. With an employee handbook, you can maintain control over the dissemination of information. This detailed document ensures all existing and new employees are on the same page and leave little room for error.

Proactive Updates Prevent Problems




Every company should have an employee handbook to establish clear guidelines before their team hits ten or more staff members. As your business changes and grows, review and update your handbook to ensure that your employees are up-to-date with new policies.

It may be a good idea to have your HR team tackle the employee handbook in-house, but if they don’t have the bandwidth, you can use an online review service, download online templates, or get help from an outsourced team. Either way, if you have an attorney on staff or an HR expert, ask them to review the handbook before you send it out. This way, you can make sure your employee handbook reflects all new state and federal rules and regulations.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Life Sciences

GAAP Revenue Recognition for Milestone-Based License Agreements in Biotech 

Revenue recognition is one of the most technically demanding areas of accounting for any company. In biotech and life sciences,...

Accounting & Finance

What Each Finance Function Should Be Doing for You

From Bookkeeping to FP&A: What Each Finance Function Should Be Doing for You  When founders talk about "handling finance," they...

Accounting & Finance

How to Handle Back Taxes When You’ve Been Operating in a State Without Registering

The scenario is more common than most founders want to admit. Your business has been selling products or services in...

Startups

How a CFO Can Help You Prepare for a Series B Raise 

If you have made it to Series B, you have already proven something. You have product-market fit, a working revenue model,...

Accounting & Finance

Why Cash Flow Forecasting Is More Important Than Your P&L 

Ask most founders what their most important financial statement is and they will say the income statement. Revenue. Gross margin. EBITDA. These feel...

Life Sciences

How Biotech Startups Should Handle Milestone-Based Revenue 

Revenue recognition is one of the most technically demanding areas of accounting for any business. For biotech startups, it is...

Accounting & Finance

The CFO’s Role in an M&A Process: From Diligence to Close 

Mergers and acquisitions are among the most consequential events in the life of any company. Whether you are the acquirer...

Accounting & Finance

Cash Runway 101: How to Calculate It and What to Do When It Gets Short

Every founder has heard the term. Very few understand it deeply enough to act on it before it becomes a...

Nonprofit

How Nonprofits Can Leverage Fractional CFO Services to Scale Their Impact 

Every nonprofit leader has felt the tension: you are running an organization whose entire purpose is mission-driven impact, but the...