Crafting a Employee Handbook Ease for Small Businesses – Part I

An employee handbook is one of the most dreaded documents to think about for small business owners.  Employee handbooks are an indispensable tool at any organization for establishing clear expectations, guidelines, and fostering a positive workplace culture. In the first part of this two-part blog post, we'll guide small business owners through seven essential components of an employee handbook designed to make the process seamless and effective in practice.

What is an Employee Handbook?

An employee handbook, typically in digital format, serves as a detailed guide outlining organizational policies and procedures. Employee handbooks are not mandatory but play a crucial role in familiarizing employees with company culture, while helping managers ensure fair rule application. CPR suggests having one, especially as your small business grows beyond five employees. 

Why is an Employee Handbook Important?

Employee handbooks serve as a handy reference for employees, but also as a shield during litigation. Imagine a scenario where an employee sues your business for being terminated due to unprofessional behavior. It will then be your burden of proof to show that the employee was aware of company policy regarding unprofessional behavior. A signed acknowledgement from the employee that shows they received a copy could be your evidence against such a claim.

What Should be included an Employee Handbook?

The contents of an employee handbook will vary depending on your company culture, industry, mission, vision, number of employees, and type of business.  We’ll provide you some basic components of what CPR recommends including in an employee handbook.

Employee handbooks serve as a handy reference for employees, but also as a shield during litigation.

• Welcome and Introduction: Extend a warm welcome to new employees, then introduce your small business’ mission, vision, values, and culture. Establish an inclusive and collaborative tone directing employees to someone designated in your organization for any questions.  This person is typically you as the owner until your company expands.

• Acknowledgment and Agreement:  Some experts recommend including the acknowledgement at the end.  CPR recommends including this section at the beginning for visibility. This section requires employees to acknowledge they have read and understand the outlined policies.  This document is critical in ensuring mutual understanding and is a crucial reference in the case of disputes or litigation.

• Employment At-Will Status: Outline the employment at-will clause (if applicable) indicating the employee or the company may terminate employment at any time, for any reason, with or without notice. Be sure to check with an HR consultant like CPR or an employment attorney to find out if your state or hiring jurisdiction is an at-will location to help you avoid litigation.

•  Equal Employment Opportunity (EEO) Statement: Emphasize your commitment to providing equal employment opportunities to employees and applicants, free from discrimination or harassment in all aspects of employment to include:

  • Hiring

  • Promotion

  • Termination

  • Compensation

  • Leave of absence

  • And other terms of employment 

• Anti-Harassment and Non-Discrimination Policies: Clearly define acceptable behaviors, reporting processes, and procedures for unlawful harassment, sexual harassment, and bullying. Assure employees that they are entitled to an environment free from harassment and bias and not tolerated in your workplace.

• Commitment to Diversity, Equity, & Inclusion: Underscore and encourage your commitment to creating and maintaining a diverse, equitable, and inclusive workplace. Include your definitions for diversity, equity, and inclusion for clarity.  Be sure they are aligned with your mission and vision.

• Conflicts of Interest: Summarize what constitutes a conflict of interest or unethical business practice.  Offer several examples while recognizing an exhaustive list is impractical.  Some common conflicts of interest or unethical business practices you might include are:

  • Not disclosing a job applicant is a relative or friend.

  • Dating a supervisor or subordinate.

  • Accepting a favor or gift from a vendor or client/customer of a specified amount.

  • Sharing confidential business information with a competitor.'

  • Moonlighting with a competing company that provides the same product or service as your business.

  • Cashing in on a business opportunity that your company may have pursued.

Conclusion

Crafting an employee handbook for your small business doesn't have to be a daunting task. In our next blog post, we’ll discuss the final essential components that set the foundation for a positive work environment. Contact CPR to help you craft your employee handbook!

Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.