Creating Your Employee Handbook for Small Business
It only takes one mistake to put a small business under.
As your company grows, it’s easy to get swept up in the day-to-day—serving customers, managing schedules, supporting your team, and keeping the business running. But in all that momentum, many business owners forget an important tool: a clear, legally compliant employee handbook for small business.
And the consequences of having no handbook can hurt your company.
Imagine this:
A technician repeatedly shows up late to work. This bad habit eventually turns into the employee doing a no call-no show for multiple days. You decide to terminate. The disgruntled employee may claim that their dismissal was a wrongful termination.
However, if you have a clearly defined Attendance Policy that states excessive absenteeism or tardiness may result in disciplinary action, up to and including termination, and that no-call, no-shows are considered a voluntary resignation, the termination process is typically straightforward. In this case, the employee clearly violated the Company’s Attendance Policy.
A well-built employee handbook prevents misunderstandings like this. It protects your business while giving employees the clarity they need to succeed.
What is an employee handbook?
An employee handbook is a comprehensive guide that outlines your company’s rules, expectations, and important employment information. It explains how your business operates, what employees can expect from you, and what you expect from them.
More than a manual, it’s a clear code of conduct designed to support every new hire as they join your team.
What is the purpose of an employee handbook?
An employee handbook has two core functions: One for the employer and the other for the employee.
- Employers: To provide significant legal PROTECTION for your company. A clear, well-written handbook protects your business. It documents policies, outlines expectations, and reduces risk in the event of disputes, corrective action, or legal challenges.
- Employees: To inform the employee of work policies and expectations, especially during onboarding. An employee policy handbook helps employees understand workplace guidelines and expectations to follow.
A well written handbook sets the stage for good communication between you as the employer and your employees.
What should be included in an employee handbook?
Your handbook should have a comprehensive view of all your HR and legal policies you want your employees to follow. It includes (but is not limited to):
- Business Overview: Introduction to your company, mission statement, vision statement, and values.
- Legal Governing Principles: Equal employment opportunities, accessibility and disability policies, harassment policies, drug and alcohol policies, workplace violence, etc.
- Operational Policies: Employee classifications, working hours/schedules, overtime, paychecks, etc.
- Benefits: Holidays, paid vacation, paid personal days, sick time, workers’ compensation, employee assistance programs, retirement plans, etc.
- Leaves of Absence: Personal leave, military leave, family and medical leave.
- General Standards of Conduct: Workplace conduct, punctuality and attendance, use of social media, dress codes, operation of vehicles, etc.
- Any State Specific Addendums: Every state has their own specific HR laws that you need to adhere to. Typically, regarding sick leave, paid leave, and accommodations.
Don’t forget: Have employees sign your handbook at hire and again each year to stay compliant.
Need Assistance Getting Your Employee Policy Handbook Set Up or Updated?
At Recruit4Business, we offer comprehensive Employee Handbook Services to ensure your handbook stays compliant with local, state, and federal laws. Whether you’re building your first handbook or updating an outdated one, we’re here to help you protect your business and support your team.