"I was hired by Kingston's president, who told me he does everything by a handshake. In fact, we 'shook hands' over the phone when I was hired. Right away, it was made clear to me that this was an environment of trust and loyalty.
"So some of us confronted the owners and said, 'The company handbook is one of the first exposures people receive to Kingston. A new employee will think this is the kind of company they're working for.' The owners' response was to ask me and my sister [who works in marketing] to rewrite it.
"We spent a lot of time talking with John and David, the two founders, about their philosophies on all our policies -- such as, 'What is the philosophy of sick leave?' And from that we wrote a handbook that is simple and straightforward. Now if I had more time to do the next employee handbook, I would change one thing: make it more simple and straightforward."
Which shows the value of creating a handbook: the mere act of writing it gathers companywide information in a central place and forces companies to make policies clear. "Whether they are explicit or not, companies already have policies in place," says lawyer Robert J. Nobile, a partner at Epstein Becker & Green, in New York City. Nobile, who has written a guide to employee handbooks, says the act of making a handbook can be a step forward in determining what a company's policies actually are.
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Legal Stuff
"The handbook is the most important document a company can have," says Nobile. "I have seen companies go into court with it in hand and have cases against them thrown out of court. But it is a double-edged sword. I have seen employees be successful in their actions against companies because of poor draftsmanship."
This is where the handbook gets serious. First of all, companies can't avoid including several company statements on specific laws. The Family and Medical Leave Act policy must be in a company handbook, which must also contain a written sexual-harassment policy. And a section on dispute resolution. And, in some cases, a smoking or nonsmoking policy. The list is too great to continue here and can vary from state to state.
The central legal aspect is that a handbook is not a contract and should be identified as such explicitly. Nobile adds, "From a legal standpoint it is very important to reserve the right to make changes."
As for avoiding lawsuits, Nobile warns that the most common mistakes he sees are policies that are not drafted clearly. A handbook may refer to a policy for "all employees," he says, when such benefits may be only for full-timers.
Nobile's guide includes an all-purpose disclaimer that many companies use and ask employees to read and sign:
"This Handbook is not a contract, express or implied, guaranteeing employment for any specific duration. Although we hope that your employment relationship with us will be long-term, either you or the company may terminate this relationship at any time, for any reason, with or without cause or notice."
In addition, many company handbooks also ask employees to sign a page acknowledging receipt of the handbook and recognizing its statement that everything in it is subject to change.
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Resources
How to Write Your Employee Handbook, by Stephen D. Bruce (Business & Legal Reports, 800-727-5257, extension 169, $129.95).
Guide to Employee Handbooks, by Robert J. Nobile (Warren Gorham Lamont, 800-950-1216, $98).
The Employee Handbook Audit, by the Alexander Hamilton Institute (201-587-7050, $65.95; book and computer diskette for IBM or compatible are $96.95).
Employee's Role
Typical Ashton Photo Co.
Permission to be right Permission to be wrong
Rote Conceptual
Orderly Productive
Unimaginative Creative
Quiet Communicative
Obedient Assertive
Trained Educated
Be hidden Public posted performance
Somber Wit, humor
A commodity A vital problem solver
Manager's Role
Typical Ashton Photo Co.
Hold power Give power
Authority figure Role model
Go on hunch Get hard data
Avoid blame No excuses, no blame
Quota set by manager Common goal -- customer
Be an obstacle to change Remove obstacles
Turf centered Company centered
Holder of knowledge Teacher
Do Delegate -- follow up
Status quo Experimental
Handbooks needn't cost a bundle. Alan White of Ashton Photo estimates that if he factors in the staff time taken to write his company's handbook and type it up, as well as several hundred dollars for a lawyer to review it, and the initial printing costs, the manual cost roughly $800. Now when he needs extras of the typed, plain-paper document with its thicker stock cover, White takes it to the local Kinko's. His cost: about $1.50 each.
So how long should the handbook be? There's no one true length; it's really up to you. Whole Foods' version, thorough but accessible, runs 104 pages; Kingston's runs 20 (and they are small pages). It's far more important to focus on whether or not the handbook is comprehensive. If it addresses the key questions employees have and conveys the company's basic operating beliefs, then you can say your piece and get out.
