5 Reasons Why Every Company Needs an Employee Handbook

Every company should have a human resource department. But some startups are way too small for it, and they skim HR department thinking it is unrealistic until it is too late. There is a semi-efficient way to get out of this issue. An employee handbook might be what every company needs, small or large, big or small. It has details that thoroughly show every activity taking place in a company’s office. This can be from recruiting to firing, and even the dress code.
The process of writing a handbook can be long and tiring. However, its importance in a company makes it well worth it to have one because a company is made out of humans. Humans all have flaws and limited amount of memory, so this employee handbook can help as a guide.
Below are the 5 reasons why you need an employee handbook.
Protect Your Company in an Employment Lawsuit
In the event that someone is taking legal action against your business in regards to employment, your lawyer will require this handbook. This is because each and every employee has read and adhered to everything written therein.
Once an employee signs the acknowledgment section in the handbook will show that he or she was privy to all rules regarding the company. Thus, the lawsuit exercised against you will be in your favor. This is very helpful since the employee accepted to follow all policies inside the handbook.
Adherence to Federal and Government Law
Every company that has employees is required to comply with all state and federal laws. This will involve having an employee handbook that follows all employee and labor laws in the state in question.
Provided an employee who is on a leave, they will be aware of his rights as they are clearly stipulated in the handbook.
Merits provided by the Company
All employee benefits should be clearly shown in your handbook for all your employees, from paid vacations to pensions. These merits can motivate both the employer and employee to take advantage of said benefits.
The human resource team will have less of a workload since they won’t have to explain everything to new employees.
Treating Workers Fairly
If by any chance a company does not write down its rules employees will feel that they are being treated unfairly. Having a handbook will clear all doubts about unfair treatment as everyone is aware of all the benefits they are to receive.
The handbook could also include a time frame of when a merit is to be offered and to whom in regard to a position.
Setting a Standard for Employees and Employers
Everything in the business will run smoothly if everyone knows what is required of them. This can be anything from what to wear within the premises to what time to arrive at work. This will often help to avoid time wasting and increase the productivity of the business.
Especially if a manager requires dealing with a business issue and the owner is unavailable, the handbook will direct him or her.
Conclusion
All in all, an employee handbook is supposed to help employees feel comfortable in their workspace. Whenever a problem arises or they don’t what to do in a particular situation they can find answers in the handbook.
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Sources:
Management, H. (2017, May 16). Paycor:8 Reasons You Should Have a Company Handbook. Retrieved May 5, 2018, from Paycor: https://www.paycor.com/resource-center/8-reasons-your-organization-should-have-an-employee-handbook
Msiza, T. (2017, August 15). How to Write a Human Resource Manual. Retrieved May 8, 2018, from wikiHow website: https://www.wikihow.com/Write-a-Human-Resource-Manual
Nguyen, C. (2015, August 25). Amity Law: Top 5 Reasons your Company Needs an Employee Handbook. Retrieved May 5, 2018, from Amity Law: http://www.amity-law.com/blog/2015/8/25/top-5-reasons-your-company-needs-an-employee-handbook