Implementing an employee handbook

An Internet search for information about employee handbooks will provide thousands of Web sites offering implementation tips, handbook templates and legal advice. The information may seem overwhelming, but don't let it deter you from publishing an employee handbook or updating your current one. An effective employee handbook will provide your employees with an understanding of their roles in your company's success, which can make your company a better place to work.

An employee handbook's primary function should be to serve as a communication tool within your organization. It provides answers to employees' questions about insurance and other benefits, attendance, safety, compensation and harassment, as well as facilitates consistent policy enforcement and legal protection for your company. An employee handbook also can help new employees gain insight into your company's culture by emphasizing your company's ethics and philosophies.

Creating and implementing a thorough employee handbook will require time and effort, but its positive effects as a communication tool for your work force will outweigh the efforts you and your staff put into producing it.

Whether you are updating an existing employee handbook or implementing a new one, the following tips will provide a formula for making the project as easy as possible.

Handbook preparation

Your first step when implementing your company's employee handbook should be to determine who will be responsible for the project. If you have human-resources staff members, implementing and updating an employee handbook should be part of their responsibilities. However, an administrative assistant, office manager or volunteer committee can be assigned to the project.

The designated project manager should be familiar with your management philosophies and company's operating practices. The project manager also should understand your expectations and deadlines regardless of whether you are producing the handbook in-house or outsourcing it. Establishing periodic progress reviews will make the final review and approval less daunting.

After you have designated a project manager, he should help you determine whether to implement an employee handbook or employee handbook and policy manual. A policy manual typically is more comprehensive than an employee handbook because it contains written guidelines to assist managers and only is distributed to managers and supervisors. A policy manual may contain information and procedures specific to each policy. Employee handbooks are distributed to all employees and inform employees and their families about the company and its policies with less management detail.

You may prefer to only implement an employee handbook because it is simple to implement and use; your company may be small enough that a policy manual is not necessary; or you may not want to publish restricted, supervisory information found in policy manuals. However, if you decide only to publish an employee handbook, you must include language that legally will protect your company and avoid including policies or benefits that only apply to management, such as executive compensation policies and perks. This information may cause negative employee relations issues.

Before you begin writing your employee handbook, the project manager should gather memos, letters, copies of procedures, posted policies and directions currently relevant to your organization. An employee handbook simply may be an organized collection of previous communications to your staff. A checklist will help you determine which policies and procedures will be included in your company's employee handbook. If you choose not to include a policy in the handbook, record why it wasn't included. This record will be helpful when answering policy-related questions and considering handbook revisions.

Because an employee handbook is designed to articulate your employees' and company's rights, you should embrace fair policies for everyone and confer with an employment attorney before developing a handbook. You and your employment attorney should have similar business-management philosophies and subscribe to similar values. With respect to policies, your employment attorney should be regarded as a partner in your business. He may recommend specific wording of policies and procedures that will provide legal protection for your company. Policies that clearly are articulated and legally endorsed at federal, state and local levels help your company demonstrate its commitment to current employment laws.

Handbook format

Whether you develop your own handbook, use handbook software or hire a professional handbook writer, an employee handbook's format should be consistent. Some format options include question-and-answer, narrative and graphic. A narrative format is the most common, but a graphic format may be appropriate if your employees have limited reading skills.

An employee handbook's tone, tense and language also will influence employees' perceptions of your policies and company. For example, you should not include names, dates or facts that could change. Rather than stating within the handbook to refer complaints to Bob Jones, state that employees should refer complaints to a specific position, such as a superintendent, human-resources manager or whomever you designate. If you decide to use names or other specifics, you must be committed to publishing timely revisions or your company's employee handbook will not be considered an accurate resource.

Your company's handbook also should be published in languages spoken by your employees. For example, if you have many Spanish-speaking employees, you should publish your handbook in Spanish and English.

You also should consider whether to present the handbook to employees in paper form, electronic form or a combination. The form you choose may help determine which software will create your handbook. For instance, if the completed handbook file cannot be converted for use on your company's intranet, you may want to choose another software option.

The handbook format you choose should accommodate revisions. It is easiest to organize your handbook in sections with appropriate information in each section (see "Typical sections in an employee handbook"). Sections will facilitate employees' use of a handbook as a reference and your ability to revise it. Having one policy per page also makes future updates easier because page numbers and changes will be more manageable.

Handbook implementation

Before publishing and distributing your company's employee handbook, have your employment attorney review it. Your employment attorney's advice should be taken seriously because he will be defending your company if any policies are scrutinized or questioned by courts or government agencies.

In addition, if your employees are represented by a labor union, items in your collective-bargaining agreement may conflict with items in your employee handbook. You should consult your employment attorney about how to present your handbook to a union representative and your work force. You and your employment attorney also should discuss how to respond if a union representative has concerns about specific policies. Remember, a handbook is a communication tool and not subject to negotiation.

After you have made changes suggested by your employment attorney, present your company's employee handbook to your management staff for review and approval. Reasons for specific policies and wording should be presented and discussed. At this time, management has an opportunity to ask questions and provide feedback. This is a critical part of implementing a handbook because supervisors must be prepared to answer employees' questions. The better prepared supervisors are to answer questions, the more they will take ownership of the policies and better communicate with employees.

Employee introduction

Do not assume your employees will become familiar with your company's employee handbook on their own. You should demonstrate the handbook's importance as a communication tool by allocating time to discuss the contents with employees.

New hires will benefit from an individual handbook overview as part of their new employee orientation. The handbook should provide a positive message about two-way communication within your organization and give them information about how to communicate concerns to supervisors.

Typically, the most efficient way to familiarize current employees with your company's employee handbook is to hold a group meeting when the handbook is distributed to each employee. During this meeting, you should explain your company's policies and give employees the opportunity to ask questions.

When you have completed the handbook orientation, employees should sign a receipt of acknowledgement stating they have received an employee handbook and understand your company's policies. The receipt should be filed in employees' personnel files.

Handbook revisions

Not only is it important to establish a plan when writing your company's employee handbook, it also is important to plan for handbook revisions. You should begin by designating a project manager.

Establish an approval process for revisions, and determine how often revisions will be published and how to communicate changes to employees. Although you can't always anticipate when a policy change will be required, you should try to give employees at least 30 days' notice of a change. The notice will reaffirm your efforts for open communication and give employees time to adjust to major changes.

The most important aspect of handbook maintenance is good record keeping. It is important your records reflect which policies were in effect at all times. The outcome of employee claims may be affected by which policies were effective during a dispute, for example.

Eventually, management philosophies will evolve and policies may be interpreted differently. When this occurs, note interpretations in your copy of the employee handbook. The notes will help you make a clarification or revision to a policy.

A living document

An employee handbook should not be published and left unused. Instead, refer to your company's employee handbook often and make it a living document within your organization.

For example, when regular employee meetings are held, such as safety meetings, ask a supervisor to discuss one or two policies from the employee handbook.

In addition, scheduling an annual employee handbook meeting allows you to reinforce company policies with your employees and provide a forum for them to ask questions. Although you may know your company's employee handbook's details, you shouldn't assume your employees do, too.

Another way to make your company's employee handbook a living document is to use your handbook as a constant resource when employees, including supervisors, ask questions about policies. The handbook will help you consistently interpret policies. And employees will learn to use their handbooks as an accurate reference for future questions.

Things to consider

An employee handbook helps explain advantages and benefits of working for your company, as well as clarifies important employment policies and problem-solving procedures. And employees can share their handbooks with their families to teach them about your company's culture and answer frequently asked questions.

Not having this type of communication source available to your employees can contribute to low morale and legal problems, as well as taint employees' impressions of your company. To avoid such problems, you should invest your time and resources in developing an effective employee handbook within your organization.

The return on your investment will be improved employee relations, higher morale and increased productivity.

Sandy Bradford is human-resources manager at CTA Inc., an architecture and engineering firm in Billings, Mont.

Typical sections in an employee handbook

When creating an employee handbook, you should organize it into several sections that will make it easy to use. Consider including the following sections in your company's employee handbook:

Introduction

It is important to introduce a company to all employees because it helps set a company's tone and gives a solid first impression to new employees. A handbook's introduction should include a company's history and growth, management and operating philosophies, and organizational structure. The introduction also should help employees understand where they fit in a company's structure.

On the job

This section should explain every regulatory and administrative policy that affects employees' daily duties. Some topics included in this section should be attendance, equal employment opportunity, Internet and technology use, harassment, performance evaluations, and personal appearance and demeanor. These policies demonstrate a company's intentions to be a stable and productive corporation. It is important not to leave anything to interpretation in this section because employees may misinterpret policies.

Payroll

A payroll section should explain timekeeping particulars and how compensation is determined and overtime is calculated and paid. This section also should include information about payroll, such as paydays, pay advances, pay deductions, travel time, final wages, and cashing of payroll and expense checks.

Time away from work

A section about time off should contain policies related to time away from work, including holidays, vacation days, sick leave, disability, funeral leave, military leave and medical leave of absence.

Benefits

A handbook's benefits section will be unique to each company. The section should discuss health and welfare benefits and special benefits programs, such as tuition reimbursement and professional development. A benefits section also should address what happens to benefits if an employee's status changes, including if a former employee is rehired.

Communication

A communication section should discuss whether a company considers different types of information and communication proprietary, customer-related or employee-related. The section also should include information about how employees are expected to communicate with each other and customers. Problem-solving and grievance policies also should be included in this section, as well as information about supervisors' roles. A policy addressing third-party intervention during disputes also may be included.

Safety and security

A safety and security section should contain a company's safety policy, its drug- and alcohol-free workplace policy, drug-testing program, and smoking and workplace-violence policies.