Having an employee handbook with written policies not only improves onboarding efficiency but allows for consistent and fair practices when dealing with personnel disputes and sets expectations for both the employee and what employees can expect from their leadership.
Your organization’s goal when writing your handbook is to ensure you are encapsulating the necessary guidelines to protect your employees and your organization by clearly communicating policies and expectations while mitigating risk. Your handbook also allows your organization to showcase employee benefits, and ensure compliance to local or regional laws.
Below is a checklist to aid in drafting your employee handbook. For a blank template and sample policies see our collection of policies. Some policies are specific to certain countries or regions so take note of US Policies versus UK Policies.
1. Establish the Purpose
Begin by defining the primary purpose of the handbook with leadership and core supervisors. It should outline the company's expectations, protect the rights of both employers and employees and serve as a reference guide. It is important that you know your company’s history, best practices, and culture as that will help set the tone of your handbook and determine what policies to include.
- A brief company history
- Values, mission, and vision
- Acknowledge the type of culture you have, and the type you desire while remaining inclusive
2. Determine Scope and Requirements
Identify the main sections you want to cover. Policies you need to include as well as ones to avoid.
- Assign accountability for leading the creation of the handbook as well as implementation, review, and future edits. There should be a dedicated person to oversee the creation and implementation of the employee handbook.
- Check required policies needed for compliance (state, local, and/or regional)
- Each organization is different and you might require different policies, guidelines, or practices to best suit your needs out of the norm.
- Common policies: Health and Safety, Vacation, Holiday, Absence (US) (UK), Family or Medical Leave, Equal Employment or Equal Opportunity, GDPR (UK), Digital Media, Grievance, Conflict of Interest, Sexual Harassment, Remote Work, Expense, Nondisclosure and Confidentiality
3. Research and Gather Existing Information
Review any existing policies, procedures, or documentation as this will help ensure consistency and reduce redundancy. Consult legal counsel for compliance regulations and/or certified HR professionals.
4. Write the Content
- Use Clear Language: Ensure your policies are written in straightforward, jargon-free language.
- Be Specific: Define terms, explain procedures in detail, and give examples where possible.
- Use an Inclusive Tone: Ensure the handbook respects and acknowledges diversity.
- Open the handbook with a brief company history, values, mission, and vision statements to set the tone
5. Incorporate Legal Protection
- Incorporate any regional or sector-specific legal requirements.
- Consult with legal counsel to ensure all content is compliant with laws and regulations for not just the region your headquarters or main office operates in but also the countries your employees live in.
- Include a disclaimer on the first page that clearly states that the employee handbook is not a legal nor implied contract between the organization and employee, and either or both can terminate employment at any time, for any reason, with or without notice. The policies are subject to change at any time at the discretion of the nonprofit.
6. Create a User-friendly Design
- Use a clear table of contents
- Incorporate headings, subheadings, and bullet points
- Consider digital versions that are searchable
- Use graphics or illustrations where they can aid understanding
7. Create an Acknowledgement Form
Each employee should be required to sign and date a form acknowledging that they have read, reviewed, understand, and comply with the policies within the handbook. Also clarify that the employee handbook is not a contract between the employee and employer and the employer has the right to update, change, and revise at will.
8. Review with Stakeholders
Before finalizing, circulate a draft among key stakeholders, including managers, supervisors, and select employees. Their feedback can help ensure clarity and applicability.
9. Obtain Executive Approval
Once reviewed, get final approval from top leadership, ensuring they are not only familiar with but sign off on all company policies included.
10. Distribute and Communicate
- Make sure every employee gets a copy.
- Consider holding sessions or workshops to go over the key points.
- Ensure new hires are introduced to the handbook during onboarding.
Handbook Tips
Update Regularly
Business needs, technologies, and compliance laws change. Schedule regular reviews (annually or bi-annually) to ensure the handbook remains relevant and is up to date.
Avoid Definites and Extreme Language
Your employee handbook should use language that implies guidelines to follow, and avoid the ability to claim wrongful discharge based on a breach of an implied contract.
- Language implying that if an employee makes it through the introductory work period or “probationary period” the employee is somehow less vulnerable to termination
- The use of the term “permanent employee” anywhere in the handbook
- Vague disclaimers or disclaimers buried in text that are unclear or difficult to find
- A specific list of reasons for employee termination
- Language indicating any type of verbal promises from a supervisor
- Language stating that termination can only be for cause
- A definitive list of disciplinary actions, that could be interpreted as requiring that all steps, or specific steps, must be followed prior to termination, or in a certain order for termination.
Prioritize Digital Handbooks
Consider creating an online version of your handbook. Digital handbooks increase efficiency as they save time and money when needing to be updated, and allow for quick distribution. A digital format also allows for easy access and feedback by employees.
Establish Feedback Loops
Establish a process for employees to provide feedback on policies, which can be considered during review periods.
Require and Incorporate into Training
Regularly train managers on the handbook's contents so they can enforce policies fairly and consistently. It is equally important that your leadership team fully understands the language within the handbook and can easily interpret policies and answer questions as needed.
Ensure new employees are given the handbook, have easy access to it digitally, and policies are reviewed with opportunities for questions and further explanation as needed.