Are Employee Handbooks Necessary for Small Businesses?

Have you ever worked at a large company? On your first day you probably received a large stack of important company information, documents, policies and more – maybe even in the form of an employee handbook.

Employee handbooks are usually provided by employers and contain employment and job-related information that employees need to know such as recognized holidays (days off), company rules, grievance procedures, important resources and contacts, policies, and more. But is all of this information really necessary at a small business?

Employee handbooks are extremely important for small businesses and large businesses alike. Here are just a few reasons why:

Handbooks Protect Employers: Handbooks provide clear expectations to employees and create a culture where issues are dealt with fairly and consistently. If an employee has a dispute, but has previously received and signed a handbook that clearly stated the policy, the company will often be protected from a liability standpoint. For small businesses especially, a claim against the business can completely destroy your cash flow – it’s much better to be safe than sorry!

Handbooks Save HR Professionals Time: You may not have an HR professional on staff – perhaps the office manager or even you, the business owner, is in charge of managing the employees. When there’s a handbook to conveniently outline paid time off, holidays, vacation time, etc., you don’t need to explain (or email) the same information over and over again each time an employee inquires. Remind them to refer to their handbook!

While the employee handbook’s main purpose is to establish a convenient and clear line of communication, don’t forget the following disclaimers: the handbook can be updated at any time and it is not an actual contract. Employee handbooks should be reviewed and revised each year at a minimum, or whenever the company undergoes significant changes.

Do you work with a Professional Employer Organization (PEO) or an Administrative Services Organization (ASO)? If so, be sure to ask them if their services include complimentary employee handbook creation and updating. If they do not, or you don’t currently work with a PEO/ASO, contact Employer Solutions Plus for additional information and support: 727-698-6207.