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The Importance of an Employee Handbook

What is an Employee Handbook?

An employee handbook is a detailed overview of the company’s policies, procedures, guidelines, and benefits. Employee handbooks help employees to understand what is expected of them and what is expected in return from management and leadership. It is a great communication tool between employees and management.

Reasons to Have an Employee Handbook?

1. Educate employees on your company’s story (mission statement, vision, history, values) and to let employees know they are a valued part of the company.

2. Sets clear behavior expectations for employees, timekeeping, reporting, and safety, etc.

3. Identifies work performance benchmarks and benefits (bonuses, paid vacations, health insurance plans, retirement plans, paid parental leave, etc.) to help motivate your employees.

4. Provides lawful protection to employees. Lays out the company’s policies regarding various matters such as harassment cases, gender discrimination, safety, and health.

5. Guidance for management. Employee handbooks can be a great resource to help guide managers/ supervisors to stay consistent in managing, applying, interpreting, and enforcing company policies. Organizations can also use the employee handbook to settle internal disputes.

6. It also ensures compliance with federal and sate laws. It is beneficial to update the employee handbook because federal, state, and local laws and regulations often change.

7. It defends against employee claims in the case of wrongful terminations or claims.

Overall, employee handbooks are an essential Human Resource foundation to your business regardless of your company size. These 7 reasons alone show how important employee handbooks can be in welcoming new employees to the organization, setting clear expectations of behaviors, benchmarks, and benefits for employees, and guiding leadership in company policies and procedures and more.

For additional guidance on keeping your business protected, contact Paroubek Insurance and speak to one of our trusted advisors. We are happy to share resources and suggestions on ways to keep your business consistently operating successfully.



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