Why is it Important for Companies to Have an Employee Handbook?

While some companies are unsure if they should have an employee handbook, others use it to ensure business compliance and success. An employee handbook is an important booklet from your HR Department that highlights the expectations of your employees, your company’s legal obligations, policies, and procedures. And while you might not have considered putting one together, here is why it could be one of the best decisions you can make for your company.

Why do companies need an employee handbook?

An employee handbook is more than just a stack of papers with words on it, in fact, it can do much when it comes to withholding your companies policies in place and even be a vital tool if legal action were to ever be an issue. For example, a handbook sets the expectations that a company has for employee interactions with customers, clients, and each other.

Additionally, a handbook can be seen as a type of “rule book” in that it ensures that employees are treated consistently as it also covers policies for attendance, employee benefits, and safety. And lastly, a handbook communicates to the employees the employment requirements for federal, state, and local compliance.

Why do some companies fail to have an employee handbook?

Now that we know why it is important to have an employee handbook, it’s surprising that some companies still fail to have one. But why? Well, some companies think that creating a handbook is too time consuming and costly while others may be simply unaware of federal, state, and local employment laws.

What is covered in an employee handbook?

An employee handbook typically covers an employer’s guidelines and regulations as well as federal, state, and local employment requirements. Additionally, the handbook should also include your employee’s attendance, safety policies, benefits, and more importantly, the procedures for handling emergencies, which can include everything from natural disasters to pandemics.

What types of businesses should have handbooks?

Technically speaking, any business, including small businesses with two or more employees, should have a handbook.

LTD Global can help!

LTD Global has created handbooks for many of its clients and we would be happy to assist your company as well. For years, LTD Global has been assisting small businesses with their HR needs, so put your trust in the hands of professionals and contact LTD Global for more details.