Employee handbooks--who needs 'em?

• Author: Richardson, Mary W.
• Position: Human Resources

Envision this: You run into an old friend at a professional event. As you catch up, your friend tells you a horror story about an employee who sued for unpaid overtime and won. Later, another old friend tells you about a former employee who is suing for back wages, claiming an employment contract was breached. If this isn't enough to ruin your frame of mind, a third colleague bends your ear about a committee she is on to stem the tide of turnover in her firm.

You sigh, glad you're not in those tight spots.

Unfortunately, it could just as easily be you. However, there are measures that can be taken to evaluate, and if necessary, beef up the effectiveness of your employee handbook.

A HANDBOOK'S EFFECTIVENESS

An effective employee handbook can support your business' quest for excellence, as well as lower your risk in the event of legal action.

The Gallup organization has, through years of surveys of millions of employees, developed 12 questions to measure the strength of an organization's culture in recruiting and retaining employees, and maximizing their productivity.

The first survey question asks if employees know what is expected of them at work.

High performance and an organization's excellence starts with setting high expectations, and an employee handbook is the best place to establish business expectations.

An employee handbook offers the perfect forum for businesses to spell out what's expected of all employees organizationwide.

Your handbook should include organizational work codes and ethics; a description of how employees treat each other at work; how and how often employees are paid; availability of and conditions for benefits: zero tolerance policies; types of performance that are recognized and rewarded; programs for individual and professional growth; and how often and in what manner performance is discussed.

An employee handbook, properly organized and produced, will serve as an ongoing resource that can answer questions, eliminate ambiguity and provide employees with the processes, people and resources for answering more complex questions and solving problems.

The second Gallup question asks if the mission or purpose of your company makes you feel your job is important.

Think of your employee manual as an effective communication tool. This is the place to talk about your firm's culture, vision and mission, as well as to invite your employees to join in. Include a personal message from the people in charge, including welcoming...