Creating an Employee Handbook: A Step-by-Step Guide

What exactly is an Employee Handbook?

An employee handbook is a valuable communication resource for both employers and employees, providing guidance and information related to the organization's history, mission, values, policies, procedures, and benefits. It is also viewed as a means of protecting the employer against discrimination or unfair treatment claims.

Here are 9 steps to help you create an effective Employee Handbook:

Step 1: Review and Make Required Revisions to the Current Company Policies

Start by reviewing company policies and procedures as a source for writing the handbook. If there are no policies, develop them. Once policies have been updated and formalized, legal counsel should review them, and HR should use these final policies for developing the employee handbook.

Employers should also consider National Labor Relations Board (NLRB) rulings and guidance to avoid overbroad confidentiality rules or conduct rules that could be construed as placing restrictions on criticism toward the company, which is a protected concerted activity.

Step 2: Create an Outline of What to Include in the Employee Handbook

The topics included in the employee handbook should cover the employer's mission statement, equal employment opportunity statement, contractual disclaimer and at-will employment statement (where allowed), purpose of the employee handbook, and background information on the company. The decision to include additional topics is left to the employer.

Step 3: Draft Policy Summaries

The employee handbook should include a statement that summarizes each policy and procedure. The statements should be easy to read and formulated to speak to the employee audience.

Step 4: Add Each Summary Statement in the Appropriate Sections According to the Outline

Once HR has completed the employee handbook outline, the next step is to write the organization's position, rules, or policies under each of the outline topics.

Step 5: Review the Entire Handbook

The review process ensures that the information is accurate and easy to comprehend. The handbook may be reviewed by HR, a project team, or both.

Step 6: Provide Finalized Version to Legal Counsel for Review

By reviewing the final version, legal counsel will ensure that it contains no statements that may create contractual agreements.

Step 7: Select a Means of Publication

Organizations can seek a request for proposals from a few select vendors. Once the vendor is selected, the employer should work with the vendor through each step in the publishing process, including formatting the handbook to a specific size and style. Once the formatting is complete, a final review and approval should take place before sending the handbook to print.

Step 8: Distribute Handbooks

Establish a method for distribution, such as during new-hire orientation or manual distribution to employees. Posting the employee handbook on the company intranet or via e-mail is useful when changes to policies are made and need to be communicated to employees.

Step 9: Update as Necessary

Employers should establish a point person to be in charge of updating the employee handbook as necessary when employment laws or internal policies change. It is also important to conduct a full handbook review.

In summary, to develop an employee handbook, review company policies, create an outline of topics, draft policy summaries, add the summaries to the appropriate sections, review the entire handbook, provide a finalized version to legal counsel, select a means of publication, distribute the handbooks, and update as necessary.