Momentum - Business to Business Online Magazine November 2017 | Page 39
Employee
Handbooks:
Not Required but a Good Idea
By: Sandy Cody
President
Draker Cody
[email protected]
Business owners frequently ask me: “Must I have an
employee handbook? I really don’t want written policies
that tie my hands. I’d rather make decisions based on
issues, not a package of rules.” FREQUENT EMPLOYEE HANDBOOK PITFALLS
While employee handbooks aren’t required, I tell my
clients that there are a number of benefits. • Signed acknowledgements. Having employees sign
acknowledgements that they have received and read the
handbook provides solutions to the “I didn’t know that”
syndrome. It also is documentation if a complaint or lawsuit
occurs.
SOME OF THE BENEFITS
• A centralized location for government-mandated and
company-specific policies provides a set of guidelines
for how things are handled in your company.
• Written guidelines reduce the risk of
misunderstandings and inconsistency.
• Written guidelines protect you and your employees
from such issues as favoritism and discrimination
charges, lawsuits, reduced productivity and reduced
employee engagement.
• When policies and guidelines are written and followed,
employees are more likely to feel they are treated
fairly.
• Managers have a resource for consistent decision-
making rather than making it up as they go.
A well-written handbook is also an opportunity to
engage your employees and share your company’s
history and culture, as well as the rights and
responsibilities of employees. Benefits, compensation,
flexible work schedule guidelines, company teams, paid
time off policies and other aspects of an employee-
friendly workplace also can be shared.
As I work with clients to write or update employee
handbooks, here are some of the common pitfalls I counsel
them to avoid:
• Disclaimer statements. Not including disclaimers near the
opening of the handbook and again in the handbook-
received acknowledgement statement can create the
perception that the handbook is an implied contract of
continued employment.
• Discipline details. Avoid stating the exact steps of the
disciplinary process. Progressive disciplinary procedures
frequently negate the at-will policy and do not leave the
company the flexibility to take immediate termination action
when necessary. Note: Union policies oftentimes require
progressive disciplinary programs.
• Restricting dialogue. The National Labor Relations Act says
that employees have the right to engage in “protected
concerted activities” to discuss work conditions to improve
them. Writing policies that restrict employees’ abilities to
talk about their jobs could cause problems.
• Keeping it current. Employee handbooks need to be
reviewed and revised routinely to ensure that they comply
with current state and federal requirements.
There are too many pitfalls to list here, but they also include
not including policies related to attendance, family leave,
complaints and more. As I help clients write or update
employee handbooks, I also encourage them to create as few
policies as necessary to maintain an effective, harmonious
workplace.