How to Make the Best Use of Your Employee Handbook

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Employee handbooks are a nifty communication and reference tool for the workplace, but only if they’re used and not collecting dust on some physical (or digital) shelf. A handbook is only as good as what it does. At the minimum, it should do the following:

Introduce employees to the fundamentals of your organization’s culture—the beliefs and values that members of the organization are expected to share. This introduction explains what you do and why you do it. It may also give employees a look into the history of your organization, how you got to where you are, and where you intend to go. Last but not least, it gives employees an idea of how they can contribute to the culture.

Communicate to employees what general behaviors and procedures are expected of them. These include general safety responsibilities, confidentiality expectations, timekeeping processes, reporting procedures, dress codes, and any other ways of doing things at your organization.

Educate employees about what they can expect from the organization’s leadership. Executives, managers, and HR departments have obligations to their employees—both those they’ve established themselves and those required by law. A good handbook tells employees what those obligations are and how they will be met. If your employees are entitled to leaves or accommodations, for example, your handbook should explain these.

Support consistent enforcement of company policies. Employers expose themselves to risk when they interpret, apply, or enforce policies inconsistently. Transparency about policies and how they are enforced helps keep everyone accountable and the enforcement of rules consistent across the company.

Showcase the benefits the organization offers. Does your organization offer vacations, 401(k), health insurance, paid parental leave, or other employee benefits? If so, your handbook should outline these programs and their eligibility requirements.

Let employees know where to turn for help. Employees should feel safe turning to HR or a manager to report workplace violations, get workplace-related assistance, and get answers to any other questions they may have. The alternative is for them to turn to an outside third party, like the EEOC, the DOL, or an attorney, which could trigger a costly and time-consuming investigation. When a handbook provides multiple ways for an employee to lodge a complaint (ensuring they won’t have to report the problem to the person creating the problem), they are more likely to keep their complaints in-house.

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Top 7 HR Mistakes

7 Common HR Mistakes to Avoid

Do not ignore the human resources side of your business! This happens when things seem to be going well. After all, why look for trouble when you have enough to deal with every day. Relations with employees run the spectrum of emotions, depending on the situation.

Do not be a reactive HR person, professional HR people are proactive in recognizing/rectifying HR mistakes. Avoiding serious problems, will save countless headaches and protect your company against costly legal claims.

Mistake #1: Your outdated employee handbook

Every business, large and small must have an up to date Federal and State compliant employee handbook. If you do not have current rules and behaviors in writing, you are asking for problems. Include laws/compliance changes, which may legally impact your policies.

If you have not spelled out acceptable and expected behavior, by providing tangible guidelines, you may be exposed to costly litigation. Your company employee handbook should be updated, as compliance changes occur. This of course may be difficult to accomplish without automated compliance alerts. As we all know employees should sign an acknowledgment form stating that they received the publication and will abide by its policies. Since compliance changes can and do happen often, we recommend all employees sign off on their handbook annually.

Mistake #2: Be sure you document positive and negative performance

We cannot emphasize enough the importance of writing out policies and operating procedures. Without these you have no boundaries for proper employee conduct. When violations occur, they must thoroughly document. Although it takes time to document when an employee was reprimanded, for example frequent tardiness, it may become needed evidence to support a decision to terminate employment. 

Being consistent and documenting employee interactions will help to better address potential litigation that could arise in the future.

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Mistake #3: Not properly maintaining employee files

For compliance, it is important to keep records containing all the personnel documents including employee work history.

Do not include all employee documents in the same employee file. Documents containing employee’s personal information should be kept in a different (secured) file. 

We recommend having a file for I-9s, which verify employee eligibility to work in the U.S. Fines add up fast if you don’t have current and correct documents ready when request by Immigration and Customs Enforcement.

And remember HIPAA, requires employees’ personal health and welfare information to also be kept separate.

Mistake #4: Quick hires and incomplete job descriptions

Hurried hiring and promotion processes can lead to a host of Employers Problems can be compounded when companies hire and promote quickly. Providing a proper job description to potential hires helps alleviate future misunderstanding, problems and sometimes law suites.

Producing a proper job description will help you reduce future hassles. Complete job descriptions will make it easier to hire the best candidate for the job. Bonus! Your new employee will start off with a clear, structured understanding of their job requirements.

Mistake #5: Training or lack of…

Your employees are your companies most important asset. Maximize their potential by providing training courses. Training will increase their success and thereby increase your company’s overall success. Including courses in subjects like Sexual Harassment will contribute to a safer work environment and potentially protect your company against litigation. Training your employees properly should be considered an investment in your company’s future. 

Providing certificates of completion for formalized training can increase   employee morale, recognition and should always be included in their performance reviews.

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Mistake #6: Insufficient HR policies

Start with an internal HR audit. In the ever-changing world of HR compliance most companies do not have the HR staff or resources internally to ensure compliance. If this describes your company, consider taking advantage of outside resources.

A well-thought-out plan will protect you, your employees, and your company.

Having policies and plans for handling unexpected events reduces the stress, potential liabilities, and costs.

Mistake #7: Employment compliance knowledge

A well-run HR department must be up to date on employment laws and regulations. To do this they will require trusted resources. When in doubt ask for professional assistance. 

Being out of compliance with OSHA regulations will bring hours of additional work as well as stiff fines.

Avoiding costly mistakes is much easier than fixing them. Take the time to know the government agencies that regulate your business. 

Conclusion

Even in the best of times, day-to-day business operations can distract you from spending time on the human resource side of your business Being proactive when it comes to human resources will help to avoid serious problems, save countless headaches and protect your company against costly legal claims.

Human resources and compliance can weigh down even the most experienced professionals. Our HR Advisors, one click compliance Handbook ,Compliance Database, HR Tools and Employee Training are ready to help navigate HR all year long. Everything included with your AllMyHR™ Solutions

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Previous Labor Laws & Information

14 Things to Know When Building Your Employee Handbook

Consider your Employee Handbook the constitution of your company. They serve as much more than a collection of corporate rules and procedures. Handbooks are often revered by courts as binding terms and conditions of employment. 

When it comes to unavoidable disagreements with employees, your written policies will make or break you. So when building your company’s employee handbook, here are six things to include and eight things to avoid as the creator. 

Top 6 Things Your Employee Handbook​ Should Include (and why)

1. These 3 Specific Policies
  • An ‘At-Will’ Employment Disclaimer​.

    Some of the most important verbiage within this document as it states the employment is at will. Nothing helps you avoid implied employment contracts like a clear, concise sentence stating “employees can be terminated without cause or notice.”

  • A Strong Anti-Discrimination Policy.

    This is perhaps the most important policy to be sure is effective and correct. It should define employee harassment and have clear procedures to follow by listing out specific instructions. Instructions should include how to report the incident, who to report the claim to and any forms to complete. Employers are required to promptly investigate any and all claims with or without employees’ submission in writing.

  • An “Introductory Period” Clause​​.

    Known to most employers as a probationary period. To remain effective this correct verbiage must be applied instead.

2. Specific State and Industry Laws

Most employee handbook templates focus solely on Federal requirements, but state and local laws are also extremely important not to overlook. These can affect the legality of specific wording as well as implementing policies. Being in breach of these can leave your company open for lawsuits. (Example: Although FMLA is a Federal Requirement for qualifying employers, California has specific, state-based FMLA requirements, including required extended leave)

3. On that subject...Correct Laws. 

Many companies google themselves into potential lawsuits on a regular basis. Laws and regulations change quite often, so your company shouldn’t rely on the first page of a search engine to determine the most up to date requirements. HR Professionals usually have their preferred systems to pull information, perhaps from a SHRM membership or another compliance database. Others prefer Automatic Handbook Builders that update when compliance requirements, laws or regulations change. 

4. Training. 

Too many companies don’t practice what they preach. Ensure your Supervisors have a working knowledge of your handbook’s policies and they review it with every update. Updates and supervisor review should take place every six months or less. Training your Supervisors, or Management will ensure the policies and standards you worked hard to create are upheld.

5. Accessibility. 

Handbooks are one of the most important resources for employees to have access to. This is important to you as the employer because your handbook cannot mitigate risk if your employees cannot access it. Encourage your employees to review the handbook completely. Require them to sign an acknowledgment stating they have received and have access to the current update. 

*Pro Tip.*

A great way to ensure your employees will review your handbook is to place a secret reward message within a policy. Rewards such as a free lunch or an additional paid day off a year can go a long way. Change the location of this reward’s wording with each update. Current employees will naturally talk to new employees about this, encouraging them to review it.

6. Legal Counsel Review or Attorney Written Content.

Some ​​Employee Handbook Builders provide Federal, State and Industry specific attorney written content. A system that is up-to-date and reliable can limit the need to turn to your business attorney. This can save your company thousands each year.

Top 8 Mistakes to Avoid In Your Employee Handbook (and why)

1. Cookie Cutter Template.

When used correctly, Handbook templates can be a useful starting point for small businesses. Although you should be warned: templates usually only include federal requirements and blanket statement policies. For a business to use these, they must invest a great deal of time writing their policies while researching state, local and specific industry laws, regulations and policies. Make sure this is a smart investment of time and resources beforehand and research Handbook Builders prior to beginning the process. Some cost as little as $225 a year with automatic updates. 

2. Legalese.

Yes, technically your handbook is a quasi-legal document. More importantly, it serves as an irreplaceable reference to inform your staff of your culture, expectations, and requirements. Therefore, it shouldn’t read like a legal document. Your staff should be able to understand your handbook with clear and concise language.  

3. Overly Restrictive Disciplinary Policy.


​By being too specific, listing out offenses or defining ‘steps taken’ per infraction, you can leave loopholes for employees to exploit. Not following your handbook during an infraction can open up the possibility of lawsuits or fines, and these can leave you unable to deviate from policy. To avoid these penalties, a disciplinary policy should include a specific disclaimer. This disclaimer should state: “As the employer, you reserve the right to enforce disciplinary steps as necessary, regarding the severity of the infraction.”

4. Frankenstein Patchwork Policies.

Imitation is the greatest form of flattery unless you’re ‘borrowing’ exact policy verbiage from others and revising only some of your own policies at a time. This can lead to contradictions or duplicate policies with different requirements, such as having Vacation, Military Leave and FMLA policies require different forms of notice. Read through your handbook with every policy update to ensure you stay consistent. There are also handbook builder services that provide automatic updates to avoid this confusion.

5. Attempting to make it a Binding ​Agreement. 

To mitigate risk when changing policies, your handbook should state that it is not a contract. It should also state policies can be revised at any time. Contractual or post-termination agreements, such as Nondisclosures or Arbitration agreements, should be completely separate from your handbook. Some states have recently gone as far as to change employer laws regarding Arbitration agreements (See NY July Law Alerts). 

6. Too Many Details. 

Remember, both employees and employers are bound by the handbook. Extensive detail can bind your hands when it comes to following procedures or policies. Protect yourself from this by utilizing verbiage such as “Supervisors shall…” or “the company reserves the right to…”

7. Pretaliation. 

Requiring whistleblowers to bring their complaints internally first can actually put your company in illegal waters. Review your company’s confidentiality agreements to ensure they do not limit or impede anyone from communicating with enforcement agencies. These agreements should be separate from your handbook’s acknowledgment. *See Binding Agreement above*

8. Inconsistent or Unrealistic Policies. 


Not following your specific policies the same for each employee can mean possible discrimination lawsuits. Additionally, unrealistic policies can hinder your supervisors. If your managers and supervisors won’t enforce it, make sure it’s not part of your handbook. 

In Conclusion

All in all, your company was uniquely created. Your handbook should outline everything you expect from your employees. It should define the culture your company strives to provide every staff member. Learn how our handbook builder helps your company stay compliant with a simple click of a mouse.

Everything you need to stay compliant including:

  • Federal, local and industry specific contact.
  • ERISA Attorney written content
  • Automatic updates for every regulation, law and policy change.

 

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