Startups

Why Your Startup Needs an Employee Handbook

  • 4 min Read
  • July 16, 2018

Author

Escalon

Table of Contents

 

An employee handbook is vital to the success of your startup. But, perhaps you’re wondering why your startup needs an employee handbook and when it’s appropriate to create one.

Two of the simplest reasons you need one are for the creation of processes and policies and to facilitate benefits administration. Let’s look at these reasons as well as a few others, but first, let’s discuss when you need one.

When Do You Need a Handbook?

While there’s no one-size-fits-all answer, it’s the best practice to have one as soon as you possibly can.
Because the handbook defines your policies, procedures, processes, benefits and more, it can easily help you solve disputes and answer questions.

If you don’t have one at the outset, you should at least have one before your team hits 10 or more.

You can find templates online, or you can outsource the building of your handbook. Either way, if you have an attorney on staff or a human resources expert, you want to ask them to review the handbook before you send it out.

Drafting a handbook in the early stages of your startup forces you to think about how you want to run your company and what kind of culture you want to create.

It helps you look at the big picture and decide what you want your staff to wear, how you allocate cellphones and computers, vacation and sick leave, work from home, benefits, disciplinary action and more.

You’ll find that doing it in the beginning stages of your startup sets you up for success and helps you ward off workplace disputes and conflicts.

Here are a few more reasons you need one.

It Sets the Tone

Welcome your new team members with a well thought out employee handbook. This makes a lasting impression and helps guide them through their first days and months at your company.

Onboarding is incredibly important to employee retention, and an employee handbook shows your new team members that you are a company that cares about its employees.

Overall, an employee handbook helps your team settle in faster, so they spend less time wondering about policies and more time focusing on their new role.

It Promotes Fairness

Many small businesses simply wing it when it comes to human resources. They may offer one staff member one set of benefits and another something completely different.

An employee handbook sets consistent policies through your entire startup and ensures that you are fair and equal to all employees, offering equal benefits when possible.

A book of documented policies leaves no room for questions about conflict resolution, sick leave, vacation, and rules.

It Helps You Grow

A handbook helps you scale your startup with consistency.

If you don’t have one, and you’re scaling quickly, all the important information gets passed down from employee to employee.

This leaves things open to interpretation, and it’s a bit like a game of telephone – you have no idea what comes out in the end.

With an employee handbook, you maintain control over the dissemination of information.

This detailed document ensures all current and new employees are on the same page and leaves little room for error.

Final Thoughts

To conclude, your startup needs an employee handbook, preferably at the very beginning.

It helps set standards and a positive employee culture.

You want to remember, though, that one of the most vital parts of that employee handbook is getting your staff to read it and sign indicating they will abide by it.

During your new hire onboarding, you should go through the handbook thoroughly, and then have the new team member sign a document indicating they read it, understand it, and agree with it.

Are you a new startup ready to succeed? Are you looking to get your new business off the ground and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your HR duties, finances, payroll and more to us. Contact Escalon today to get started.

Image: Piotr Krzyżanowski on Unsplash

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

People Management & HR

5 Key HR Challenges to Address Before Summer to Keep Your Team Engaged

For many startups, the summer months can be a dual-edged sword. On one hand, warmer weather and looming vacations can...

Read More
Taxes

How to Maximize Your Tax Deductions: Essential Tips for Startups in Q2

Tax season often triggers stress and complexity—especially for startups laser-focused on building products, acquiring customers, and scaling operations. Yet savvy...

Read More
Startups

Mid-Year Financial Checkup: How to Assess and Adjust Your Startup’s Budget 

The halfway mark of any given year is more than just a date on the calendar; it’s a valuable checkpoint...

Read More
Consumer Goods

Inventory Accounting 101: Navigating Costing Methods and Their Impact on Financial Health 

For consumer goods companies, managing inventory efficiently is critical—not just for operations but also for financial health and risk management....

Read More
Technology & Security

Compliance Considerations for SaaS: Protecting Data and Staying Secure

As more businesses transition to Software-as-a-Service (SaaS) solutions, data security and regulatory compliance have become top priorities. From handling sensitive...

Read More
Accounting & Finance

How Outsourced Accounting Supports Scalability in Portfolio Companies 

For portfolio companies, whether backed by private equity, venture capital, or family offices, scalability is essential for maximizing value and...

Read More
Consumer Goods

Insights from a Consumer Goods Expert: Building Brands, Inventory Management, and the Power of Outsourcing

Insights from a Consumer Goods Expert: Building Brands, Inventory Management, and the Power of Outsourcing  In a recent conversation with...

Read More
Private Equity

The Key to Private Equity Success: Strong Financial Oversight and Compliance

Private equity deals are becoming larger and more complex, making financial preparation a critical part of the process. Take Novartis’s...

Read More
Accounting & Finance

Navigating Grant Management and Financial Reporting for Biotech Startups 

Biotech startups operate in a unique financial landscape, where securing grants, venture capital, and government funding is crucial for driving...

Read More