Any company with more than one employee can benefit from a prepared employee handbook. In fact, it is a necessary document created to protect both the company and the employees from misunderstandings relating to employer guidelines. The first step in creating an employee handbook is to outline your goals and objectives concisely. Many employee handbooks are created by the company Quality department in conjunction with the Human Resource department. It is important to note that the handbook must be reviewed and approved at every step by the senior management of every department. Creating an employee handbook is a group endeavor and should be approached with planning and specific intent.

If a company has a Quality Operating System (QOS) in place, that team is the obvious choice to create the handbook. If a company does not have a QOS, the responsibility falls on the senior management of every company department.

The first aspect of the document is to explain company policies and procedures. Areas like vacation time, company recognized holidays, sick leave, etc., are covered in this section. It is important to be specific regarding policies in each area. Employees will refer to the employee handbook for information and for clarification. All of the information in this area should be discussed in the employee orientation process as well.

There should be a separate area covering employee benefits. This is especially true if your company offers benefits in addition to medical, dental or optical. For example, if life or disability insurance is offered, these benefits should be detailed. The same goes for 401K programs or any other offered benefits.

Another important aspect of the handbook deals with employee discipline. Your company must establish a firm set of guidelines regarding discipline and they should be included in the handbook. This way, if an employee has a dispute about disciplinary procedures (as most surely will happen) they may be directed to the handbook for verification. Employee discipline should be tailored to the severity of the offense and a warning system should be in place. Typically companies use a written non-compliance method to discipline, thus limiting corporate liability in the event of an issue.

When conducting an employee orientation, have the new employee sign a form stating that they have read and received the employee handbook and place a copy in the employee file.

The purpose of the employee handbook is to educate the employee on the specific guidelines and benefits of the company. There is no such thing as too concise a handbook. It is an invaluable tool in communicating the specific guidelines of your company.