Employee handbooks��who needs 'em? - 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 letters.

Meeting these important employee needs from the first day gets people off on the right foot--and ensures everyone is getting a consistent message.

A handbook also provides an organization with legal protection.

For example, certain issues-such as at-will status of employees, sexual harassment and violence in the workplace policies, conflict resolution process, and dismissal procedures (not conditions)--if clearly stated in the handbook, discussed during orientation and management training, and enforced, create a favorable, fair and equitable environment, which can reduce your risk of a possible lawsuit.

WHERE TO BEGIN

You can invest as little as $500 or as much as $20,000 to get a good employee handbook, depending on your approach, the complexity of your policies and your business' size.

One investment you will have to make is review by legal counsel. All employees handbooks must be vetted with an employment law attorney. If you need to cut costs, start with a simple handbook, just don't skip the attorney.

If you do most of the handbook development internally, start by reviewing the resources available through the California Chamber of Commerce, www.hrcalifornia.com, or Knowledge Point, www.knowledgepoint.com, and customize your handbook using their examples.

You also can hire a human resources consultant or model your handbook after organizations that have successful business practices.

As you build or revise your handbook, remember to run it by an employment law attorney for review at each step.

To stay current with case law, a manual and your employment policies need to be reviewed and updated every 18 months. Some firms employ HR professionals-either in house or contract--who stay abreast of the law, and then review documents with an attorney on a rotating basis.

Some employment law attorneys employ HR professionals to help with the actual construction of the handbook.

But wait a minute, you might exclaim, this isn't a major client audit. It's just an employee handbook. Why all the fuss?

Well, like professional audit results, an employee handbook is a document that can tell a lot about the integrity and viability of a business. And an audit is a good way to evaluate how much work you need to put into making your employee handbook an ongoing asset to your business.

ELEMENTS OF AN EMPLOYEE HANDBOOK

Introduction: This sets the tone of the manual, and, quite likely, the employment relationship.

In this section, questions such as the following are answered: Who welcomes the employee? Are your mission, vision, core business, values, culture and work environment clearly explained? Do you introduce your "at will" employment policy? Do you state that your handbook is not an employment contract? And do you state that revisions may happen and will supersede existing policy? What is the overall business relationship you wish to create with this employee?

Handbook basics: These are categories you will find in handbook formats.

* General conditions of employment;

* Conduct and consequences;

* Pay and benefits;

* Leaves of absences; and

* Workplace policies

Handbook best practices: This includes the basic information about the company arranged in a clear and concise manner that tells employees what they need to know. It includes information on items such as:

   *Day-to-day basics;

   *Communication;

   *Locating important information;

   *Promotions and other position changes;

   *Company sponsored programs and services; and

   *Business practices

Appendices, Forms and Acknowledgements: These may or may not be a part of the handbook:

   * Anything that needs to be a separate
   agreement, such as a confidentiality or
   non-compete contract;

   * New and emerging forms, such as
   repayment agreements, loans and new
   COBRA forms; and

   * Waivers and agreements

OTHER THOUGHTS

Clients have asked me, how short can I make my manual and keep it legal? My response is just this side of "As long as it needs to be."

If you focus on keeping the language clear and understandable, and including all of the policies you follow, you will have made your handbook as short as it can be.

Once you have all of the elements, and have had the language reviewed by an attorney, think about arranging the material in an employee-friendly manner. One organization sized and drilled the manual to fit a planner. Others post their manuals online.

Many organizations also get their employees involved in the creation or revision of their manual. But don't get this confused with letting employees write the handbook.

Employees can offer valuable insight in terms of what should be included, and the handbook's organization, style and format. Employees become excellent advisers and focus groups in improving design, style and presentation.

As the ultimate consumers of the handbook, your employees can provide significant insight into the factors that differentiate an employee manual that is reviewed at new employee orientation and stuffed in a drawer from one that sits in an employee's planner for ready reference.

In creating or revising an employee manual, there are critical resources to employ: an HR professional, managers and employees, senior staff, and a good employment law attorney. Eliminating any one resource places your organization at risk. Call on all of your resources, and you set a firm foundation for an excellent business partnership with your employees.

Think of your employee handbook as another opportunity to establish strong business relationships with your employees that will breed increased loyalty and productivity.

There may be a lot of time, resources and sometimes, money, invested in developing and updating a legally defensible, user-friendly employee handbook--but the alternative to this attention to detail often costs more.

Mary W. Richardson, MA, is a senior consultant at San Anselmo-based Herrerias & Associates, She specializes in human resources and organization development. You can reach her at [email protected].

COPYRIGHT 2003 California Society of Certified Public Accountants
COPYRIGHT 2003 Gale Group