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Glossary Terms
Glossary of Human Resources Management and Employee Benefit Terms
Table of contents

Employee Handbook

An employee handbook, employee manual, or staff handbook is a comprehensive document created by an organization to communicate its policies, procedures, expectations, and guidelines to employees.

It serves as a reference guide for employers and employees, outlining the rights and responsibilities of each party within the workplace. The handbook typically covers a wide range of topics, including but not limited to company culture, employment policies, benefits, work hours, conduct expectations, and legal compliance.

What is an employee handbook?

An employee handbook is a comprehensive document that outlines the policies, procedures, and expectations within an organization. It is a vital resource for employees and employers and encompasses many topics to foster a harmonious work environment.

The primary purpose of an employee handbook is to communicate essential information to employees, ensuring a clear understanding of company expectations and guidelines. It acts as a guidebook for navigating the workplace and sets the foundation for a positive and productive employee experience.

What are the other names for the employee handbook?

The names for the employee handbook can vary depending on the organization, but some common names include:

  • Employee manual
  • Employee handbook
  • Staff handbook
  • Company policies and procedures manual

What is the importance of employee handbooks?

The importance of employee handbooks lie on:

  • Legal compliance: Employee handbooks play a crucial role in ensuring legal compliance. They serve as a reference point for adhering to federal, state, and local regulations, mitigating the risk of legal issues, and fostering a fair and equitable workplace.

  • Communication and expectations: Effective communication is vital in any organization. Employee handbooks facilitate clear communication of company policies, procedures, and expectations, reducing ambiguity and promoting consistency in the workplace.
  • Employee empowerment: An informed employee is an empowered employee. The handbook provides a comprehensive guide that equips employees with the knowledge they need to navigate various situations, fostering a sense of empowerment and confidence.

What is the use of a handbook?

The use of a handbook is to provide employees with a comprehensive guide to the organization's policies, procedures, and expectations. It serves as a reference tool that helps employees understand their rights, responsibilities, and workplace rules. It also helps maintain consistency and fairness in employee treatment and provides guidance for resolving issues or conflicts.

What is the purpose of an employee handbook?

Its purpose is to inform employees and ensure consistent application of company rules and procedures.

  • Communicates expectations
  • Helps with legal compliance
  • Builds transparency
  • Standardizes policies

What should be in an employee handbook?

It should cover everything employees need to know to perform their job and follow company rules.

  • Conduct and behavior policies
  • Attendance and leave
  • Pay, perks, and promotions
  • Safety and IT use
  • Grievance and escalation process

How to create an employee handbook?

Build a handbook by gathering all company policies and aligning them with employment laws. Involve key stakeholders and legal experts.

  • Define purpose and audience
  • Collect all company policies
  • Consult HR and legal teams
  • Organize content by sections
  • Review and approve internally

How to write an employee handbook?

Writing involves structuring clear, compliant, and easy-to-follow policies. Keep tone consistent and content employee-friendly.

  • Use simple, clear language
  • Add a welcome note and overview
  • Group topics logically
  • Maintain a professional tone
  • Include a table of contents

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.

eNPS:

eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

How to make an employee handbook

Making one means turning company policies into an organized, accessible document. It can be digital or printed.

  • Choose a format (PDF, web, print)
  • Use a ready-made template or write from scratch
  • Collect accurate policy details
  • Structure into readable sections
  • Finalize with a legal review

What should be included in an employee handbook?

Include all essential policies and practical guidance that help employees understand rules and benefits.

  • Mission and values
  • Hiring and employment terms
  • Code of conduct
  • Compensation and benefits
  • Work hours and leave
  • Safety and IT policies

Is an employee handbook a contract?

No, it is not a contract but a reference document. A disclaimer should state it is not legally binding.

  • Not legally enforceable
  • Can include “at-will” employment clause
  • Use a clear disclaimer
  • Avoid language that implies obligation

Do small businesses need an employee handbook?

Yes, it brings clarity, protects the business, and sets professional standards—even for smaller teams.

  • Clarifies roles and rules
  • Reduces legal risk
  • Sets the tone for culture
  • Improves onboarding

How often should an employee handbook be updated?

Handbooks should be updated regularly to reflect policy or legal changes. A yearly review is ideal.

  • Review once a year
  • Update after legal or policy changes
  • Document all revisions
  • Communicate updates to staff
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