A properly drafted Handbook sets forth the guidelines, expectations and most importantly the policies of your business.
Your business is never too small to have an employee handbook. When employees know exactly what is expected of them it reduces their stress and allows them to better focus on their duties. It also removes questions and concerns about the grey areas of vacations, time off, dress code, benefits, and a whole host of other important topics that need to have clarity in a business.
We’ve seen many family-owned businesses not have a handbook in place which not only damaged the business but has ruined family relationships. We feel that there are primary reasons to create a quality Employee Handbook, and then review and maintain it on a regular basis.
Increased Productivity. In fact an Employee Handbook can be even more important for a small business than a large corporation. When you only have a few employees, sometimes staff can take advantage of your good will and the close relationship they may have with you (especially if family members are employees). Define your expectations in writing right from the beginning and it can set the proper tone for your relationship with your employees.
Termination of an Employee. If you have to terminate an employee, having an Employee Handbook gives your attorney, the ammo they need to hold the employee accountable. Verbal expectations, habits and “This is how we just do it around here” don’t cut it when you have to fire an employee for breaching company policy. You certainly don’t want a wrongful termination suit, and if your policies aren’t clearly established in writing, it simply comes down to a “he said-she said” argument.
Disciplinary Procedures. When you have written guidelines for employees, don’t forget that there should be a clear procedure and policy for when employees violate the rules and terms of the Handbook (this should also be started in the Employee Handbook). Additionally, you should have disciplinary procedures and forms in place for their employee file.
Unemployment Claims. Finally, relying on the Employee Handbook can also help prevent a successful unemployment claim by your employee. When you get into an unemployment hearing, if you can provide a signed copy of an Employee Handbook. Moreover, make sure you follow the ‘write up’ procedure when an employee is reprimanded. If you have the Handbook but don’t follow the disciplinary procedures, it can reduce its effectiveness to some degree.
That is why AGC also provides human resource advisory services. Whether you are looking to hire a new employee, implement employee documentation, policies or procedures, we can help! Visit our HR Advisory services.