Good operating policy is the foundation for any successful business. Companies that are lax in this area are more likely to breed confusion among employees, and leave the door open for discourse in the workplace. A handbook that is well thought-out can govern the actions and expectations of both the employees and managers. It can also help new workers understand the company culture so they can better acclimate to their respective positions.

Employees need to know what you offer

Employee acquisition and training is not cheap, so you need to do everything you can to help workers see the benefits they are getting in return for their loyalty and hard work. A handbook will lay it all out for your workers. When they read it, they can better understand the benefits of sticking with your enterprise.

Prevent discrimination and favoritism

When your handbook outlines your business practices, it gives management a framework to follow and ensures every employee is treated the same with regard to disciplinary action, promotion practices and other situations that can arise within the company.

Help your case in a lawsuit

A well-crafted handbook can be invaluable if the company is ever sued by a terminated employee. If the former employee signed off on the handbook, it can prove that he was well aware of the rules before he violated them and got fired.

What’s in an Employee  Handbook?

It doesn’t matter how small a company is, a manual that outlines standards in the workplace is a must. Your company handbook should be tailored to fit your organization and cover any policies and procedures you deem important. Some across-the-board information your handbook should cover includes:

• compensation
• anti-discrimination
• conflicts of interest
• standards of conduct
• safety and security
• employee benefits
• worker leave
• non-disclosure clauses

Some of these categories are broad, so they leave room for you to cover a number of subcategories within each one. For instance, the category of “compensation” can cover such things as pay, overtime, benefits and taxes. This list is not exhaustive. All policies listed in your handbook should be non-biased and in the best interest of the company. More importantly, it needs to comply with local and federal guidelines.

If you are unsure how to draft a handbook, either consult a business attorney or use a reliable resource like the U.S. Small Business Administration to figure it out. Also, go over your handbook each year and update any policies that are outdated.