Without a doubt, an employee handbook is one of the most important documents a business can have. Yet, many business owners are under the mistaken impression that handbooks are either more trouble than they’re worth or the liability associated with a handbook is greater than whatever benefits their business may derive from it. In my experience, it’s just the opposite — businesses that do not develop or use an employee handbook and businesses that fail to update their employee handbook are the ones with the greatest risk.
If you’re not a believer in handbooks, consider a few of the benefits from a well-written one. Among other things, a properly designed handbook can:
• Save management time by reducing work policies to writing so you don’t have to "reinvent the wheel" each time a similar situation arises.
• Promote consistency and fair treatment of employees, which helps build trust.
• Provide necessary documentation and evidence that the organization complies with state and federal employment regulations.
• Set the overall tone for the organization by communicating the business philosophy and position on a number of critical employment issues.
• Enhance recruiting efforts by helping to "sell" the organization to prospective employees.
• Encourage buy-in and support from employees because they can easily understand the "whys" behind a policy or decision.
THE VALUE OF A HANDBOOK. The value that comes from a good employee handbook is substantial. And, the fact is, there are ways to reduce the risk associated with your employee handbook. Unfortunately, in attempting to do so, many organizations have gone overboard. This, I believe, is why handbooks have been given a bad name. How does this happen? It’s simple — most handbooks are written by people who have absolutely no writing ability whatsoever. Sorry to say this, but it’s true.
Many handbooks are created from store-bought programs that are fill-in-the-blank-style manuals without an iota of character or are authored by professionals (yes, I said "professionals") who design handbooks that are poorly worded, unorganized, confusing, punitive in their style and riddled with legalese. Much of the time when we revise these handbooks, we can’t figure out what they’re saying, much less what they mean! (The handbooks I’m talking about could easily be confused with the IRS tax code. Seriously. It’s no wonder employees don’t want to read them and managers don’t want to use them!)
Don’t have a handbook that nobody wants to read! Believe me, the younger generation of workers is simply not interested in reading boring policies that continually remind them of their employer’s "rights," their obligations to the company and all the ways their boss can fire them. Instead, when it comes time to develop or revise your employee handbook, utilize the expertise of someone who can design a handbook that is creative, interesting, fun-to-read, compliant and suitable for the culture of your organization.
AN ANNUAL REVIEW. Your employee handbook should be reviewed annually to ensure compliance with state and federal employment regulations and to ensure that the company policies and practices are up-to-date. The following checklist can be used when you update your handbook:
1. Ensure that all policies comply with federal employment regulations and state employment regulations for the states in which you operate.
2. Review all policies and make certain that your company is prepared to fully live up to every word in your handbook. Add all appropriate disclaimers, employment-at-will language and other terminology to preserve flexibility.
3. Update all of the policies so they are comprehensive, concise and consistent with market standards.
4. Have the policies developed by someone with writing ability. The policies should be written in plain English, using a tone that is modern and that appeals to younger generations. Use humor and industry references where appropriate.
5. Redesign the style of your handbook using updated fonts — giving it a clean, crisp, contemporary, professional and easy-to-read look. Your handbook should have a look that makes you want to pick it up and read it!
6. Revise the layout of your handbook and ensure that the benefits are in the front of the book.
7. Add any needed policies covering current issues and topics.
No doubt, with these changes, the value of your handbook can increase considerably and can actually save you time, help solve your employee problems, promote understanding within your work-force, build morale, enhance compliance and improve the image of your organization. Quite a significant return from a few pieces of paper…
The author is president of Seawright & Associates Inc., a management consulting firm in Winter Park, Fla. She provides human resource management and compliance advice to employers across the country and can be contacted at 407/645-2433 or jseawright@pctonline.com.
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