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The Value Of Employee Handbooks


Employee handbooks are invaluable to organizations of any size. Handbooks are the key management and employee communication tools that outline benefit offerings, performance management and compensation programs, and other work related practices. The most effective handbooks are user-friendly documents that:

  • Establish the standards, values, and expectations by which the organization operates to ensure optimal productivity;
  • Create a set of management practices and standards to ensure consistent application and treatment of employees within and across departments and locations. This helps minimize the occurrence and legal costs associated with cases of unlawful discrimination; and
  • Demonstrate the organization’s commitment to uphold applicable federal, state, and local employment laws and regulations.

Most handbooks are summary versions of the organization’s Policies and Procedures Manual, a more comprehensive set of management guidelines. Therefore, most are similarly organized and indexed to ensure consistent application of organizational policies and practices. Handbooks typically include content (sections and policies) similar to the information listed below:

  • General management policies and practices including, but not limited to, an explanation of the organization’s management principles, values and goals; employment “at will” doctrine (if applicable); nondisclosures and protection of confidential/proprietary information; ethical standards; and equipment and materials usage.
  • Human resource policies and standards such as the corporate code of conduct; dress code; employee leave programs including employee rights under the Family and Medical Leave Act (if applicable); training and professional development programs, memberships, and assistance; and performance management and incentive programs.
  • Administrative management policies including an explanation of the organization’s standard work hours, alternate work hours, timekeeping and attendance requirements, and expense reporting processes.
  • Safety, security, and facilities management policies including workplace safety and security practices, prevention of workplace violence, occupational safety and health considerations, and emergency site evacuation procedures.

The most effective employee handbooks are dynamic documents that are regularly revised and updated to reflect the organization’s changing workforce, its industry, economic conditions, and the legal operating environments.
 In recent years, employers have experienced a significant number of changes and administrative challenges in federal employment legislation including the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA) and the new Health Insurance Portability and Accountability (HIPAA) privacy requirements.

There has also been a noticeable increase in employment-related court cases as a result of seemingly ordinary activities. One example is the Virginia court case against an employer based on its employee’s involvement in a vehicular fatality that is assumed to be a result of her using a cell phone for a work-related call. As a result of this and similar court cases in other states, many employers are developing policies prohibiting the use of cell phones for workrelated purposes while operating a motor vehicle.

The Virginia case underscores the need to continuously monitor, update, and document the standards by which a business manages its workforce. Modifying existing or instituting new workplace standards helps avoid or at least minimize the costs of employment-related litigation.

Annual updates become critical to assuring your handbook continues to serve its primary goal of communicating clear expectations to your workforce and remains compliant with changing employment laws and regulations.

Federal and state employment laws hold organizations accountable to a variety of state-specific regulations and requirements. Such changes make it all the more important for you to document the standards by which you wish to manage your workforce to ensure optimal productivity and profitability and to minimize your chances of costly employment related litigation.

HiRe Expectations, Argy, Wiltse & Robinson’s human resources and management consulting practice, develops cost effective workforce solutions that improve the productivity and profitability of your workforce and minimize the potential for employment-related litigation.

Please contact, Michelle Geddes at mgeddes@HiRe-Expect.com or 703-770-6343 for advice or consultation on developing employee handbooks or other workforce tools. For additional information, visit our website at www.HiRe-Expect.com.