An employee handbook puts everyone on the same page—it gives all employees access to company policies and thus serves as a written standard to which you can return. If the company has to deal with discipline issues or vacation time questions, it can refer to the official company policy rather than dealing with each situation on a case-by-case basis. By putting all employees on the same page, then, the presence of an employee handbook can eliminate charges of favoritism and also avoid time-consuming decisions.
In addition, an employee handbook serves as an easy answer source for employee questions. Managers will spend less time dealing with employee questions when the employees learn that the answers are in their handbook. Employees are also unable to make the “I didn’t know” excuse—by putting answers in the employee handbook, the company is placing responsibility in the hands of the employee.
An employee handbook also protects a company from lawsuits and other legal headaches. For example, a company that outlines a sexual harassment policy in its handbook cannot be charged later with permitting sexual harassment. The courts can review the employee handbook to discern the company’s written policy on sexual harassment or any other issue.
Even if your company is a small business, an employee handbook both protects you and streamlines your company’s operations. It outlines your expectations of your employees and details what they can expect from you.