Have you developed an employee handbook? Here are 7 strong reasons why you must do it

Ms. Shreya Parikh May 21, 2023

What is an employee handbook? 

Many of you might not have heard of an employee handbook. It is a book containing all the details about the organization’s history, mission, policies, procedures and values. It serves as a communication bridge between the employer and the employee. It protects the employer against false claims such as discrimination or unfair treatment. Besides, it works as a comprehensive guide for the new employees as they learn about management expectations, rules & regulations, policies & procedures.

How to ensure employees read the handbook? 

A straightforward way is to take written acknowledgement from the employee stating that they have read and understood the handbook’s content. It can be saved along with the employee’s docs. In case of conflict, the employer can claim that his steps are mentioned in the handbook. However, one must ensure that the handbook differs entirely from the employment agreement.  

The handbook, being an important document, should be reviewed by legal experts.

Benefits:

1.    The employee understands your vision, mission and values:

A handbook includes the company’s vision, mission, culture and values. It helps employees understand your work better, and they can align their missions with yours. Giving a glimpse of your culture, the handbook conveys what is expected from the employees. 

2. Helps employees understand policies and procedures:

A handbook paints a complete picture of the organization’s culture and working style. It helps them understand what they must do to grow in the company’s ecosystem. From timings to dressing, workplace ethics & mannerism, the handbook gives complete information on dos and don’ts to avoid future conflicts.

3. Guides management and leadership:

An employee handbook mentions policies and procedures in detail. The main benefit of having a handbook is that everyone in the company, from the management to managers to new joiners, are on the same page and rules are uniformly followed.

4. Enlightens employees about their role:

A comprehensive employee handbook clearly states how employees of different hierarchies contribute to the business. It also helps employees understand policies, procedures and grievance redressals. It is a knowledge repository that brings clarity to each employee about their role, code of conduct and behaviour in the company’s environment.

5. Sets the right expectations:

The employee handbook also mentions what the company can offer its employees, setting just the right expectations. Defining legally abiding company policies in a professional tone clears confusion and brings clarity to employees and management.  

6. Helps avoid lawsuits: 

Employment-related lawsuits and claims only take place only when the organization has not clarified specific terms and conditions with the employees or the employees have misinterpreted them. A Handbook thus significantly reduces the possibilities of lawsuits and claims of harassment, wrongful termination and discrimination. 

7. Eliminates conflict: 

Internal conflicts germinate from unclear policies and undefined procedures. It leads to unfair allegations and tiffs. With the employee handbook, management and employees are bound by the same rules and regulations. As a result, no one feels undervalued or mistreated. 

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