Creating a handbook? Don’t sweat it—just think P.R.A.C.T.I.C.A.L.ly

Last week’s Tip discussed some of the most common handbook mistakes our HR consultants encounter on the job. This week, we’re going to share with you the process they use when helping clients create a set of policies.

Our goal is to help our clients create easy-to-understand, legally-compliant policies that establish company expectations, communicate company benefits, and protect their businesses. We begin every visit by asking our clients the same set of questions. Unfortunately, many of their answers point to a handbook that is doing more harm than good—which makes them lucky they called us! Take this example from a recent client visit:

Consultant: What policies do you have in place now?

Client: Um…well, we have some basic things like the Company History and Company Hours…I think something about Paid Time Off and Benefits…oh, and how employees keep track of hours worked. I haven’t looked at it in a while.

Consultant: Okay, well that’s a start. Do you have an at-will disclaimer, anything about standards of conduct, or policies relating to EEO or sexual harassment?

[at this point client is becoming visibly anxious]

Consultant: Okay, well let’s move forward and talk about your ideal handbook then. What policies would you like included in your handbook?

Client: [Blank stare] … Er…What are my choices?

Would you have better answers for our consultants? If the thought of answering these questions makes you sweat, you’re not alone. Fortunately, you can use one simple word to determine the contents of your entire employee handbook: P.R.A.C.T.I.C.A.L.

To help you decide which policies are necessary for your business, think P-R-A-C-T-I-C-A-L.ly:

1. Protect your business. There are several policies designed specifically to protect employers from liability - and without them you may be leaving your company susceptible to legal claims. At-will policies are necessary for warding against breach of contract claims. Immigration law policies are critical for conveying the company’s compliance with employment verification procedures and for demonstrating good faith efforts to comply with the law. Policies on non-disclosure and confidentiality are recommended for protecting company assets, trade secrets, and client information. Other policies that are strongly recommended include those relating to: employment classifications, introductory periods, personnel records, employee grievances, personal property, and background checks.

Bottom line: At a minimum, include policies on at-will employment, immigration law compliance and confidentiality plus those that are required by law.

2. Required policies. In addition to the policies that are intended to protect the company, there are also a few employers are required, by law, to have in place. Statements that prohibit sexual harassment, describe the company’s pay practices, affirm the company’s compliance with anti-discrimination laws, and explain the company’s safety procedures must be communicated to employees in writing. And what better way to comply with this requirement than by including these written policies within your employee handbook?

Bottom line: Policies related to sexual harassment, equal employment opportunities (EEO), employee safety, and paydays are a necessity.

3. Administrative & operational. Information relating to company operations, such as business hours, parking protocol, work schedules, and procedures for meal and rest breaks is important for eliminating many of those routine questions about how the company operates. When employees can refer to the handbook to answer these and other similar questions, they don’t have to bother management with them – saving valuable time and preventing unnecessary distractions.

Bottom line: Save time by communicating the company’s administrative & operational basics, including hours of operation, parking procedures, and practices related to meal and rest breaks.

4. Codes of conduct. A chief reason for having an employee handbook in place is to communicate company standards and expectations with regards to employee behavior.

Bottom line: Include company expectations with regards to: attendance and punctuality, substance abuse, employee discipline, the use of company property, personal appearance/dress codes, workplace violence, and visitors in the workplace.

5. The perks. You never want to forget about communicating the perks of working for you. Be sure to carve out enough space to describe your benefits program and include both mandated benefits (e.g., COBRA, workers’ compensation, jury duty, and military leave) and non-mandated benefits (e.g., health insurance, paid time off, and day care assistance).

Bottom line: Benefits-related policies are unique to what each company offers, but most include things like: health insurance, retirement plans, paid time off, educational assistance, and employee discounts.

6. Incentives & pay. Policies informing employees about paydays, direct deposit arrangements, overtime, and timekeeping procedures are also important. If you have a regular merit review process, including information on wage and salary increases can also be good for employee morale and retention.

Bottom line: Include the following pay-related policies: paydays, timekeeping, merit increases, and bonuses, if applicable.

7. Company culture. Every company is different; some traditional, some casual, some cutting edge. The handbook should be another means in which company norms are discerned. For example, does your company communicate primarily via the intranet, email, or through regular staff meetings? Does entrance into your building require a secret pin or an employee ID badge? Do you have a company sponsored sports team that employees are free to participate in? What about an annual holiday party? These are all things that make the company the way it is and will help employees to get a sense of the culture.

Bottom line: Those little nuances that make your company the way it is should shine through in your employee handbook.

8. Audience. Some policies only relate to a small group of employees, such as information describing executive perks or sales commission plans. To avoid the employee handbook turning into an encyclopedia, try to only include policies applicable to the majority of employees. Providing documentation and discussing information that only affects a small group is best reserved for the onboarding process, or for a meeting between the employee and their manager. But remember, even though this information may not make it to the handbook, it’s still important to have these employees sign off on their understanding of it.

Bottom line: Including every piece of information possible may overwhelm employees and could even prevent them from reading the handbook entirely.

9. Listen to your employees. An employee handbook is expected to grow with the company. After implementing the handbook, you should pay attention to how employees react to specific policies, whether the procedures within the handbook are effective in resolving employee concerns and whether there are issues that have arisen not covered by the handbook. This will be powerful for determining your revision needs.

Bottom line: Determine if the handbook is effective in meeting your needs. If not, you may need to re-think some of the policies you have decided to include.

The contents of a handbook are unique to each company and depend on the benefits offered, how business is conducted, and the organization’s culture. Nevertheless, the policies you decide on should be practical and ultimately serve to meet your legal requirements, decrease the amount of time spent answering routine questions, and exemplify what is and what is not acceptable conduct.