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Article #213: Why Your Business Needs an Employee Handbook and How to Get One

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Why do all large companies have an patterns of absenteeism
Employee Handbook? A legally sound, well * Behavior threatening to the reputation
crafted Employee Handbook can potentially of the Company
save a company tens of thousands of * Job performance
dollars in legal costs while serving to Handbook or no handbook, you are never
relieve administrative confusion by safe from litigation; handbooks are not
clarifying key company policies. In this 'get out of court free cards,' but having
article, we'll take a look at the three a legally sound employee handbook that
main reasons successful companies today employees can understand is an obvious
depend on their employee handbooks. smart-step toward prevention of
To Define Company Policy litigation.
Let's say you are on the witness stand; What not to include in an employee
you are being sued by a former employee. handbook
The plaintiff's lawyer asks you if you Hanks says that many companies make the
have documentation that you communicated mistake of being too specific with the
to this employee that "X" could result in language in their employee handbooks. He
termination. "X" could represent any of says that an employee handbook should be
the following example policies: directive and relating to work-life
* Non compliance to dress code issues, not a training manual or detailed
* Not using the time-clock as directed. operations manual. It should answer
* Accepting gifts from vendors. general questions about being an
* Using a company PC to browsing the employee.
internet for personal reasons. Items that don't apply to every employee
What would you say? Let's say you reply equally or that change often should be
"yes, I warned him several times; I have left out of the employee handbook.
the documentation." Instead of listing specifics in the
The lawyer then asks "Is this a rule that handbook, employers can refer to
you have created just for this employee, documents that do list specifics. For
or do you apply this consistently example, if a company has a generous
throughout your entire organization? Do benefits package for full time employees,
you have an Employee Handbook?" instead of putting an exhaustive list of
What your response be? Without preset benefits that are subject to change, they
guidelines, the process of taking may want to use verbiage such as: "Full
corrective action or terminating Time Employees are eligible for the
employees for inappropriate behavior can current benefit package as published by
be a sticky situation. the Human Resources department."
Some examples of employee handbook Examples of items that are out of scope
chapters that define company policy for an employee handbook include:
include: * Employee job descriptions
* Relationships with Competitors * Specific employee benefits
* Relationships with Customers * Steps to earning promotions that could
* Relationships with Other Employees be binding
* Image / Dress Code * Specific Pay rates
* Sexual Harassment Policy Writing an Employee Handbook
* Code of conduct Having your own customized employee
To Define 'Time Off' Policies handbook doesn't have to be difficult.
While employers primarily rely on There are companies that offer pre-made,
employee handbooks to set ground rules customizable legally reviewed sample
and avoid legal issues, Darin Hanks, employee handbooks for less than fifty
president of employee handbook dollars. Employee handbook publishers
publication company HRIT Inc., says that like HRIT send their books through a
employees tend to use employee handbooks legal review process at least every 6
to determine the amount of time off they months and also have specially tailored
are entitled to. Hanks recommends that versions for California, Texas, and Ohio
employers explicitly cover topics such to comply with unique laws in those
as: states.
* Employee Vacation Time Although template based employee
* Employee Sick Time handbooks eliminate a great deal of time
* Employee Personal Time and money from the employee handbook
* Leaves of Absence development process, employers should
To Avoid Litigation still send their customized employee
Though most corrective action procedures handbooks through one final legal review.
or terminations are handled smoothly, it Hanks recommends two sets of eyes before
only takes one disgruntled employee or the employee handbook is sent to the
ex-employee to file a lawsuit for unfair printer; one set of Legal Eyes to give a
action to cost your company tens of final legal blessing and one set of New
thousands of dollars in legal fees. A Eyes to check for grammar and accuracy.
solid employee handbook is one of the With the low cost of obtaining legally
most effective ways to combat this accurate employee handbooks that are easy
scenario. to customize, there's no reason why any
Some examples of employee handbook company, large or small, should be
chapters that can help you to avoid without an employee handbook. You might
litigation include: be surprised at how integrating an
* Duration of Employment (Employment at employee handbook into your company's
Will) hiring and employment procedure can not
* Insubordination only protect your company legally, but
* Disrupting the work environment also lead to a smoother running
* Excessive absenteeism or unacceptable operation.






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