3 Reasons Why Your Small Business Needs an Employee Handbook By Patrick Stepanian Legal Manager and Counsel, Peninsula Canada
There is no doubt that a well-drafted employment contract is critical to protecting the interests of your small business and your employees. An employee handbook, though often overlooked, is just as important a document. Not creating an employee handbook is a common mistake made by employers. Although it is not required by law, a comprehensive employee handbook is a useful tool for effective HR management. What is an employee handbook? An employee handbook is a document that defines a company’s policies, values, vision, and expectations on employee behaviour and performance. It also lays down the disciplinary process to be followed in case of violation of company policies. It is typically created when a company is started and given to new employees during onboarding. An employee handbook is also referred to as an employee manual or a staff handbook. What are the benefits of having an employee handbook? There are several benefits to creating an employee handbook. A well-drafted employee handbook:
1. Helps with new staff onboarding An employee handbook is an excellent tool to help your new staff understand your company’s values, vision, and culture. It is a written document that details your company’s mission and values, and all your policies and procedures. It supplements the job contract and the onboarding process by offering additional information on company policies, such as dress code, overtime, confidentiality, vacation, anti-harassment, termination. As your new staff adjusts to a new workplace, the employee handbook serves as a roadmap they can refer to and get clear directions on what is acceptable behaviour and what isn’t. 2. Streamlines your internal operations By setting down policies and procedures, a staff manual improves communication and reduces conflict in the workplace. Managers and employees can refer to it in case of any issue or disagreement. Clear and comprehensive policies help ensure all employees are treated fairly. A staff handbook can also answer the commonly asked questions your employees may have about company policies.
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