How to Develop and Write an Employee Handbook

An employee handbook outlines the rules and expectations of working for a company, usually distributed to new hires. Sometimes known as a company policy or employee manual, an employee handbook may outline the expectations of a position, along with relevant information about company culture, company policy, benefits, and more. Drafting an employee handbook is beneficial for both your workers—by ensuring clear communication and setting them up for success—and for your company, because it protects your company from certain liabilities if your employee does not adhere to company policy.

The specific details of an employee handbook may vary from company to company, but many companies choose to include the following elements:

• Company overview: An overview of your company’s history illustrates your business’ goals and core values, helping your employee to connect with your business. This section of your handbook may include background information about the business and its founder(s), the company’s mission statement, and what kind of environment you’re trying to build.
• Code of conduct: The code of conduct section of your employee handbook outlines the performance and behavioral expectations of your employees. It often includes expected ethical standards, required dress code (if any), information regarding meal breaks or cell phone usage during work hours, or disciplinary actions taken in response to abuse or other conduct violations.
• Equal employment opportunity and non-discrimination policies: Federal law requires an employer to state their company’s adherence to fair employment laws. Including literature about equal employment opportunities or non-discrimination policies in your handbook is a great way to make sure your employees understand and absorb these laws. Additionally, outlining your company policies on hiring, firing, promotion, and performance review process can protect your company from liability.
• Family and medical leave policy: A business with 50 or more employees covered by the Family and Medical Leave Act (FMLA) is required to have a policy that protects workers who require sick leave for themselves (or to take care of ill family members), or for maternity leave.
• Payments and holidays: Your staff handbook should review how the company payment schedule works—how often employees get paid, as well as the method (via check or direct deposit). You should also include information about which holidays are observed and paid.
• Perks, benefits package, and vacation policy: It’s important for your business to cover the benefits that are included with full-time or part-time employment, including health insurance information, paid time off (PTO), or vacation time. Disclose whether employees are entitled to reimbursements for company equipment or supplies, or entitled to overtime.
• Workplace safety: Your employee handbook should include information about how your company keeps its employees safe, as well as procedures for employees to keep each other safe. These guidelines—like directions for using equipment or safety measures taken after hours—can help give both you and your employees peace of mind that they are working in a supportive environment.

Whether you lead a small business or a large corporation, an employee handbook can be a useful guide to set new employees up for success.

1. 1. Create an outline of the necessary information. Compile all of the most pertinent information that your employees need to do their jobs safely and successfully. Try to imagine all the questions a new hire would have, and how you could answer each of those questions in a concise manner. You may want to work with your managers and team to get a sense of some of the frequently asked questions from your employees.
2. 2. Write your mission statement or goal. After you’ve outlined your company’s origin story and core values, draft your company mission statement. Describe how your employees play a vital role in your company’s success. State your respect and value for their time and effort, and emphasize that everyone working for your company is part of a team, working together to achieve a common goal.
3. 3. Include your employment policies and disclaimers. Draft a section in the handbook that reviews each company policy in depth. Divide each section into relevant categories and subsections, and include any graphics, examples, or illustrations that will help clarify your procedures. Consider reviewing other employee handbook examples to see how successful companies outline their policies for their workers. You can also find a collection of employee handbook templates online.
4. 4. Review and update your handbook. Your company policies may shift as laws change and your company grows. Conduct regular reviews of your handbook to make sure it accurately reflects the current views and requirements of your company. Go over your handbook revisions with your Human Resources department or lawyers to ensure the language is clear and does not violate employee rights or cause liability issues. Distribute the handbook to your employees after every update so that both new employees and more senior staff are all continuously on the same page about worker expectations.

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