Having a printed or digital policy handbook, or manual, is a must for any business. This can be produced on most any small office copy machine. But the truth is that many small businesses lack anything that can be considered a “policy manual” and many owners and HR managers find that creating one is a challenge.
In fact, according to experts, many small businesses not only have no policy manual, they lack a new employee orientation process or even a standard termination process. Yet these are tools that can be a company’s first line of defense for avoiding costly employee claims and lawsuits.
Thinking About Your Policy Manual
One of the first things you will want to determine is what to call your manual. The conventional approach is to simply refer to it as the “policy manual” or handbook. Some businesses use the title of employee manual or handbook. Neither of these is required, however. You can call it anything you want!
In fact, being a bit creative with the name can result in a document that is far more accessible and interesting for employees.
A few suggestions are “Team Guidebook”, “Company Guide to Our Policies” and “Company Culture Manual”. The idea is to craft a title that engages your staff while embodying the company culture of your organization.
It’s also a great idea to begin your manual with the company’s mission statement. By starting with this vision, you help to reinforce why you do what you do as a company while providing a relevant context for the policies in the handbook. Along with your company’s stated mission, you could include a list of the company values. All of which will set the stage for more meaningful policies.
One more point to keep in mind is that the rest of your policy handbook should only have that: policies. Many organizations put too much information into a document with the not-so-exciting title of “Policies and Procedures”. Not only can this be overwhelming and off-putting, but procedures should have their own document separate from company policies.
Policy Manual Content: Complying With the Law
A common question is whether employee policy manuals are required by law? There is no federal requirement and the state of California, for example, does not require businesses to have a policy manual. However, the state of California does stipulate that, if a manual or handbook is created, then certain policies must be included.
In fact, according to an article on the CalChamber website,
“Certain policies are mandatory and must be included in your employee handbook. For example, California employers must have a written harassment, discrimination and retaliation prevention policy. Including these policies clarifies for employees their rights and obligations, and protect you from potential liability.”
This is where getting professional assistance can be beneficial. While a policy manual is good for clarifying and documenting a company’s policies, it can also lead to potential lawsuits if it’s done incorrectly. For example, stated policies must not violate any federal or state laws or override the at-will employment relationship.
Best Practices for Your Policy Manual
Although it is recommended that a company engage the assistance of a professional HR company for this task, here are a few critical “best practices” and tips for creating an effective policy manual yourself:
- Avoid using legal or industry-specific wording. Simplicity, clarity and brevity should be your guide here. You do not need to address every labor law issue that might arise in your business. Keep the wording understandable and informal. The goal is to communicate, not obfuscate!
- Be clear with policy expectations, but avoid “micromanaging” employee behavior. Your company’s rules and policies need to be clear, concise and sensible so have them reviewed and reasonably critiqued before finalizing your content. This is especially important for sections explaining disciplinary actions that may be taken by management. You don’t need a policy for everything! Expect your employees to have common sense and ethical integrity.
- Acknowledge and define digital conduct. The prevalence of digital media and the constant need for online security makes this is a high priority item. Provide a clear and comprehensive overview of digital use and practices. For example, include policies for online use at work, what can be posted on behalf of the company, and as an employee.
Despite the challenges, it is possible to create your own policy manual. For example, the Society for Human Resource Management, or SHRM, offers these general steps:
- Review and revise company policies
- Create an outline of what to include
- Create summary statements of each policy
- Add summaries according to outline
- Review policy handbook
- Submit final version for legal review
- Distribute approved handbook
A company’s policy manual will be unique to that company due to the unique nature of its policies and culture. However, there are some specific items that every company should include.
For example, the SHRM website suggests that,
“Important factors to consider are legal mandates for federal and state laws that affect employees, such as the Family and Medical Leave Act, COBRA, Equal Employment Opportunity Commission (EEOC) anti-discrimination laws, the Americans with Disabilities Act, and the Fair Labor Standards Act. If an employer fails to communicate these in the employee handbook, there may be confusion and noncompliance with the laws.”
One final note: Resist the urge to rely solely on having a digital version of your company’s policy manual. Providing printed, bound copies for every employee is a great way to ensure that they literally have the company’s policies “at hand” while giving them tangible sense of legitimacy. This is not a difficult printing task as even a small office copy machine is sufficient to produce substantial copies for your staff.
