Creating an employee handbook is like laying the foundation for a successful business. When done right, it becomes a valuable resource that aligns your team, reinforces your company culture, and ensures legal compliance. Your handbook should go beyond just listing procedures and guidelines; it should also embody your company’s values, history, and mission. Crafting an effective handbook requires more than just a template and a few policies—it’s about creating a document that both informs and engages your employees.
Benefits of a Strategically Designed Employee Handbook
- Sets Clear Expectations. Your handbook helps set clear expectations for both employees and management. When employees have questions about what they can and cannot do, supervisors can refer to the handbook to back up their decisions. This clarity reduces the risk of confusion or disciplinary issues. For example, if your company has a policy about remote work, your handbook should clearly outline who qualifies, the expectations, and any relevant procedures.
- Reduces Uncertainty. A good handbook minimizes guesswork by providing clear standards and procedures for real-world situations. For instance, if you have a travel policy that limits airfare reimbursements, your handbook can help avoid confusion when an employee tries to spend more than the allowed amount on a flight.
- Welcomes New Employees. Use your handbook as a tool to welcome new employees and introduce them to your company values. This is your opportunity to show new hires what your company stands for and what they can expect as part of the team.
Creating or Revising Your Employee Handbook
Start with a Clear Purpose
Before you begin, clarify the purpose of your handbook. Is it primarily for compliance, a tool to communicate company culture, or a reference guide for policies and procedures? Understanding your main goal will help you shape the tone, structure, and content. Ask yourself questions like, “Would I want to work here after reading this?” or “Is the language clear and free of jargon?” These considerations will help you ensure your handbook is meaningful and useful to your intended audience.
Reflect Your Company Culture
Your handbook should mirror your company’s culture and values. If your workplace is formal, your language and design should reflect that. If it’s more laid-back and innovative, your handbook should have a similar tone. This is your chance to reinforce your company’s identity from the very first page.
Include Mission, Vision, and Values
While not required, including your company’s mission, vision, and values can remind employees of their significant role in the business. This isn’t just fluff—these statements have real meaning, especially to employees who want to see that they work for an organization that shares their values. In fact, a 2023 survey conducted by Brightmine shows 92 percent of organizations address company values in their handbooks.
Be Clear and Concise
Your handbook is a guide, not a legal contract. Write in plain language, avoid jargon, and keep it concise. Use short sentences and bullet points to make it easy to read. Each policy should include an easy-to-understand description, and, if more detail is needed, provide a summary and indicate where the full policy can be found. Don’t forget to include a statement confirming that the handbook does not create an employment contract.
Use Gender-Neutral Language
Show your commitment to inclusivity by using gender-neutral language. For example, use “they” instead of “he” or “she.” You might want to explain this choice in your handbook introduction. For example, you could say, “We support each employee’s choice to identify as male, female, or nonbinary. This handbook uses gender-neutral language to reflect that support.” According to Berkshire, an HR consulting and technology firm, “This approach isn’t just about words; it’s a fundamental way in how organizations function, making sure that every employee — regardless of gender or gender identity — feels respected, valued and empowered to do their best work.”
Ensure Legal Compliance
While your handbook isn’t a legal document, it needs to comply with employment laws. Work with legal counsel to ensure all policies align with federal, state, and local regulations. In a hybrid and remote work environment, staying compliant across multiple jurisdictions can be challenging. Working with an attorney can help. In fact, two in three organizations’ handbooks are reviewed by a lawyer when first created, and about half of them continue to have legal reviews with each revision.
Cover the Essentials
At a minimum, your handbook should include:
- Company Overview: Mission, vision, and values.
- Employment Policies: Anti-discrimination, harassment, equal opportunity.
- Workplace Expectations: Dress code, attendance, conduct.
- Compensation and Benefits: Pay periods, overtime, health insurance, PTO.
- Safety and Security: Emergency procedures, workplace safety policies.
- Technology and Social Media: Use of company equipment, social media guidelines.
- Compliance Policies: Legal requirements, employee rights.
- Employee Acknowledgment: A statement for employees to sign, confirming they’ve received and reviewed the handbook.
Be Transparent
Don’t avoid addressing difficult topics. If employees are responsible for paying their entire health insurance premium while on leave, clearly explain how it works. If working overtime without approval results in disciplinary action, state that explicitly. Clear communication about expectations helps prevent misunderstandings.
Incorporate Flexibility
Your handbook should be a living document that evolves as your company grows and laws change. Include a clause that allows for updates and make sure employees understand that the handbook provides guidelines, not rigid rules.
Make It Accessible
Ensure your handbook is easily accessible to all employees. Consider a digital format that can be easily distributed, updated, and referenced. However, if you prefer a printed version, make sure it’s updated regularly. Surprisingly, only 55 percent of employers publish their handbook on their online portal, though 20 percent include them in their human resources information system (HRIS). Ensure your handbook is accessible in every way—provide versions for screen readers and translations for employees who need them.
Engage Your Employees
Your handbook is an opportunity to engage your employees from day one. Consider including a welcome message, employee testimonials, or even some humor to make it more relatable. While 92 percent of companies consider addressing company culture in the handbook as somewhat or very important, 42 percent find doing so in a meaningful way to be quite challenging. You can improve your chances by asking your employees for feedback to ensure it evolves with the needs of your team.
Train and Reinforce
Don’t just hand out the handbook—integrate it into your onboarding process. Make sure new hires understand its importance, and periodically review key policies with your team. Regular training sessions can help reinforce the most important aspects.
Keep It Up to Date
Regularly review and update your handbook to reflect changes in laws, company policies, and the evolving workplace environment. Brightmine’s 2023 survey found that only two percent of respondents update their handbook on a schedule that occurs more than once a year, which can create potential liability issues when policies are not consistent with new laws and regulations. Set calendar reminders to ensure your handbook stays current, and always include it in any rebranding efforts.
Keep It Professional
While it’s important to make your handbook engaging, remember that it could be used as evidence in legal proceedings. Avoid content that could seem frivolous or distracting in a serious context.
Get Employee Acknowledgment
Make sure employees acknowledge that they’ve received, read, and understood the handbook. This can be done through a signed form or digital acknowledgment, which is crucial for legal protection and ensures everyone is on the same page.
Consider Professional Design
A well-designed handbook can enhance readability and engagement. Consider using professional design tools or services to create a visually appealing document. Striking the right balance between too much and too little information is key—provide enough detail for clarity, but not so much that it becomes overwhelming.
Final Thoughts
Your employee handbook is more than just a collection of policies; it’s a powerful tool that shapes your company’s culture, protects your business, and guides your employees. By following these best practices, you can create a handbook that not only covers the basics but also supports your employees in doing their best work.
Related Blogs
10 Tips to Ensure No One Uses Your Employee Handbook
The Critical Role of Policies and Procedures in Thriving Companies
Engagement Matters: Turning the Tide on Workforce Discontent
Resources
Bischoff, Kate. “How to write a handbook employees will read.” Brightmine. 5/14/24. Accessed 8/26/24. https://www.brightmine.com/us/resources/blogs/overcoming-a-big-handbook-challenge-getting-employees-to-read-it
“Chad Halverson Quotes.” Goodreads. Accessed 8/26/24. https://www.goodreads.com/quotes/8327746-an-employee-handbook-both-protects-you-and-your-employees-when
“Employee Handbooks 2023: Survey Report.” Brightmine. 9/8/23. Accessed 8/27/24. https://hrcenter.us.brightmine.com/benchmarking-and-surveys/employee-handbooks-2023-survey-report/52632
“Employers: Ignore Your Employee Handbook at Your Own Risk.” PR Newswire. 7/6/22. Accessed 8/26/24. https://www.prnewswire.com/news-releases/employers-ignore-your-employee-handbook-at-your-own-risk-301581655.html
“How to Write A Gender-Neutral Policy for the Workplace.” Berkshire. 12/21/23. Accessed 8/27/24. https://www.berkshireassociates.com/blog/gender-neutral-policy-in-workplace
Mishler, Keith. “Why are employee handbooks important? Here’s 7 reasons.” Insperity. 8/27/24. https://www.insperity.com/blog/why-are-employee-handbooks-important
Organ, Christine. “Employee Handbook Best Practices in 2024.” Forbes. 4/17/24. Accessed 8/26/24. https://www.forbes.com/advisor/business/employee-handbook
Robinson, Jim. “6 Inspiring Employee Handbook Examples.” Nasdaq. 3/26/15. Accessed 8/26/24. https://www.nasdaq.com/articles/6-inspiring-employee-handbook-examples-2015-03-26
