What Are the Benefits of an Employee Handbook?

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Many companies recognize the need for ways to communicate with employees. One way is to compile an employee handbook. In order to operate efficiently and to provide the employees with what they need to know, employee handbooks require research and planning. The most important components of an employee handbook is the content and consistency. The content should relate to what is expected of the employee and "how to" information. The consistency of the handbook is instrumental in preventing possible lawsuits.

Detailed Information

Employee handbooks provide information to all employees regarding policies and procedures. Handbooks are usually divided into sections and contain information in such areas as new employee orientation, breaks and lunch, smoking, use of electronic devices, compensation, benefits, examples of forms, policies and procedures, and how-tos for such things as completing expense reports.

Reference and Resource

Employee handbooks can act as a reference and a resource for questions employees may have. Using an employee handbook ensures that all employees are receiving the exact same information. A well drafted employee handbook will document in writing what the company expects of the employee and what the employee can expect in return. There may also be examples of forms, how to use a time card, how to log onto a computer, what to do when there is a fire alarm, etc.

Legal Issues

The distribution of an employee handbook is one way to protect a company from possible legal issues. If all of the expectations, policies, and procedures are clearly defined for everyone, there may be fewer causes for law suits. The handbook should be written in clear language that is understood by all employees and the contents administered fairly and consistently across the board.


About the Author

Based in Dallas, Texas, Marcia Moore has been writing business-related materials since 1974. She has enjoyed a 30-year career in the field of human resources and works as a HR consultant to small and medium businesses. Moore holds a Master of Science in social work from the University of Texas in Arlington.

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