Employee handbooks are not just an easy-to-access resource for your team but an essential component of your company's infrastructure. They provide employees with a clear understanding of company policies, expectations, and culture, making it crucial to have a comprehensive and up-to-date handbook. However, the value of an employee handbook diminishes if it’s not regularly reviewed and updated.
Leaving your handbook unattended on the shelf year after year without revisions can result in several negative outcomes, such as reinforcing outdated and potentially non-compliant laws and regulations. Employment laws, workplace safety standards, and industry regulations evolve. Failing to update your handbook accordingly can leave your business vulnerable to legal challenges, financial penalties, and damage to your business’ reputation.
What Is An Employee Handbook?
Employee handbooks are an excellent tool for business owners to share relevant information with employees. Separate from an employee agreement, which details salary, job title, job description, etc.; employee handbooks are an opportunity to provide easy-to-understand explanations of your policies and procedures, including company programs such as paid time off (PTO), sick leave, and more. While you should regularly share reminders with your team regarding specific policies and company programs, employee handbooks allow staff to review information whenever needed.
Benefits Of Having An Employee Handbook
Handbooks are a foundational tool for everyone on your team, from your newest hire to senior leadership and managers. They ensure everyone operates from the same set of standards, which is essential for creating a cohesive company culture. In addition, they help set expectations and provide clarification when challenging questions or situations arise.
For new hires, employee handbooks are an excellent resource for learning about your company's mission and values. Onboarding is an overwhelming time for new employees; providing them with a handbook can help them review important information later when they are more comfortable in their new position.
Furthermore, a well-structured employee handbook can significantly enhance decision-making by providing a clear framework for managers and employees. This clarity reduces the time spent on deliberations and increases the efficiency of resolving issues, allowing for more focus on productive work and innovation.
Why Update Your Handbook?
As your business grows and develops, so should your employee handbook. As laws evolve and new technologies emerge, your internal policies must adapt accordingly. Since your handbook is a key reference point, outdated information could lead to unintentional non-compliance. It's essential to inform your team about these updates and incorporate them into your handbook. This ensures that everyone is in sync with your policies and procedures.
In addition, updating your handbook helps:
- Adapt to organizational growth: As your business grows, it may become subject to new regulations. For example, exceeding 20+ full-time or full-time equivalent (FTE) employees will bring your business under the purview of the Age Discrimination in Employment Act (ADEA). It's crucial to regularly review and revise your policies to ensure compliance with applicable laws as your business evolves.
- Health and wellness: Policies must stay current to reflect the changing health landscape and societal needs. The COVID-19 pandemic highlighted the need for flexibility in policymaking, as companies had to introduce or revise policies concerning leave, remote work, and bereavement to accommodate unprecedented circumstances. Your handbook should be responsive and allow for quick policy changes when needed.
- Align with the current company mission: As your business develops, your core mission and goals may shift. Ensuring your handbook is updated will help keep your managers and employees aligned with your mission. This alignment is essential not only for internal work but also for presenting a consistent message to your clients and stakeholders.
- Ensure fair treatment: An updated handbook ensures you have proper policies to address potential issues. This includes establishing clear protocols for dealing with harassment and outlining the steps to take when employees do not comply with established guidelines. Such measures are crucial for maintaining a workplace where every team member is subject to the same rules and expectations, which in turn help promote a culture of fairness and respect.
- Hold your team accountable: A handbook can safeguard your business. Having a paper trail of your policies and their updates in your handbook shows that you communicated them to your team. It keeps your staff aligned with your goals, and should any situation escalate to the point of employee termination, this documentation provides solid justification for the action taken due to non-compliance.
When And What To Update
Most information in your employee handbook won’t need updating very frequently, but it’s good practice to review your handbook on at least a yearly basis. Delaying this review can result in a backlog of necessary changes, significantly extending the time required to update the handbook. Unless your organization is experiencing rapid growth or undergoing shifts in its mission and values, an annual review will be enough to keep your handbook current and relevant.
During your review, be sure to examine the following:
- Federal and local laws and regulations
- Wage and hour policies
- Staff training and processes
- Leave and benefits
- Employee conduct policies
- Technology and systems policies
Reviewing your employee handbook will take time and can be done internally; however, it’s essential that an HR professional checks it. If you don’t have a designated HR professional on staff, partnering with a professional employer organization (PEO) is one way to ensure you’re up to date with best practices and are compliant with legal regulations.
HR Outsourcing With GMS
As a business owner, you may discover that you no longer have the capacity to manage administrative tasks or keep up with the ins and outs of HR. That's where we come in. PEOs like GMS can manage a range of responsibilities for your business. By outsourcing aspects such as payroll tax to employee benefits and more, we save you time and money while ensuring your business’ compliance with local and federal laws. We focus on administrative work so you can focus on what matters most in your business.
Our HR professionals are ready to help make your business simpler, safer, and stronger. Contact us today!