3. Employee Behavior. Under this heading, you can discuss the attendance policy, meal breaks and rest periods, and general expectations of employee conduct. This can include stating a policy against employee harassment discrimination, bans on smoking, a substance abuse policy, how employees may use the Internet or e-mail, and a dress code -- if you have the latter. You may want to address how employees should handle conflict resolution. Make this section very general in nature. "Don't get into too much detail," Cooper says. "It's human nature to want a laundry list of all the acceptable things but it's human nature that you're going to forget something too."
4. Pay and Promotions. Spell out your methods of payment and let employees know whether they will be paid every week or every two weeks or whatever. This is where you state your overtime policy, define work hours, and discuss your pay grade structure so that people know where they fit in the hierarchy, Rowson says. "The last thing you want to do when you hire someone is to surprise them about when their paycheck is going to arrive," Rowson says. "You want to let people know how often they will get paid and how they will get paid, do you offer direct deposit, and how many pay periods there are in a year." You can also talk about what types of compensation packages you offer, including whether employees are eligible for bonuses or stock options and how the performance appraisal process works. Cooper cautions that if you spell out a company policy for advancement that you need to remember that the company and its managers all need to buy into that policy. "That's where most companies make mistakes," she says. "They promise too much and they don't follow their own policies."
5. Benefits. In this section, provide employees with a general overview of the benefits you offer in terms of health care, dental, vision, life insurance, etc., but don't discuss specific policies with specific companies. "Your benefits may change frequently -- probably more often than the handbook does," Cooper points out. Do talk about who is eligible, whether only full-time employees or if part-time employees are offered a pro-rated benefits package, address that, as well. List the criteria for eligibility, when you can enroll in benefits, and what the critical life events are during which you can change benefits -- such as a marriage or birth of a child.
After all the information is assembled into an employee handbook, make sure to vet the document before distributing it to employees. If at all possible, an attorney should be involved in preparing the handbook. "If an employer is trying to save money," Cooper says, "the minimum they should do is have it reviewed by an attorney once it's put together." That review, she adds, just might help your business avoid future lawsuits involving employee behavior that is -- or is not -- defined in the employee handbook.
Dig Deeper: Do You Need a Social Media Policy?
What to Include In an Employee Handbook: Recommended Links
The Society for Human Resource Management
http://www.shrm.org
SHRM is the world's largest association devoted to human resource management, representing more than 250,000 members in more than 140 countries.
The U.S. Department of Labor
http://www.dol.gov
Guides to federal labor laws on the department of labor website can help you make sure you're covering the basics in your employee handbook.
Small Business Handbook
http://www.osha.gov/Publications/smallbusiness/small-business.html
The Department of Labor's Occupational Safety and Health Administration's handbook for small businesses can help employers provide a safe and healthful workplace for their employees.
Free Model Handbook
http://www.smallbusinessnotes.com
Smallbusinessnotes.com offers a free model handbook. The Alexander Hamilton Institute's Complete Policy Handbook ($100) is a CD-ROM with editable policies with state-by-state guidelines. And Policies Now is a deluxe program (hrtools.com; $199) that uses a Q&A wizard to help you customize a manual
World at Work
http://www.worldatwork.org
This global human resources association focuses on compensation, benefits, work-life, and integrated total rewards to help organizations attract, motivate, and retain a talented workforce.
