• Employee lawsuits, assisting in defense of your employment practices in court
• Under-performance due to misunderstanding of expectations
• Reduced profitability from unmotivated employees
• Lack of consistent culture within the organization
• An unsafe and legally non-compliant work environment
• No repository for information required to defend against employee claims
• Inconsistent management because of unclear and ill-defined direction
Specifically, the following examples will make it clear how valuable an Employee Handbook can be:
• Employee Handbooks are an excellent way to communicate current employment laws that are mandatory to inform your employees of. Employers may also choose to post many of these laws in employee lunch rooms, but having employees read and sign off on the receipt of an Employee Handbook will be more powerful when using it as a defense in court.
• All companies, regardless of their size, are susceptible to liability. Many states have laws that an employer with a single employee must comply with anti-discrimination laws. Therefore, it is imperative for even the smallest of companies to create written, legally reviewed policies as part of their Handbook.
• Statistics show that Employee Handbooks are valued by employees and create greater trust and understanding between employees and the company. Employee Handbooks can motivate employees, boost productivity and improve relations with the employer.
• A properly drafted Employee Handbook will protect a company. More importantly, the Handbook can help the company position against claims concerning harassment, privacy issues, social media use and many other areas.
• Employment claims often arise because employees perceive preferential treatment - real or otherwise. An Employee Handbook can provide clear guidelines to management and employees alike and will help minimize unfair practices and increase employees’ opinion of employers’ fairness.
It is never too late to create or update your Employee Handbook, no matter what the size or age of your company. Written and legally reviewed documentation can significantly minimize liability and other risks and become your best protection.
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Avoid The Risk Of Not Having An Employee Handbook
Employers are often cautious, or not knowledgeable enough to put their company policies and applicable employment laws in writing in an Employee Handbook. They should be very wary of this mistake. Not having their policies in writing can be much more detrimental to an organization, the morale of staff and their compliance with labor laws.
Employee Handbooks give guidance to supervisors and managers, as well as staff, on pertinent issues such as what benefits they are entitled to, dress code and labor laws that may apply to them. The Handbook also helps new hires understand the culture of their company and the expectations management has of the employees. In short, the Employee Handbook is a necessity for an employer, big or small. The following are some examples of how a Handbook can protect a company:
by Mary Simmons | Portnoy, Messinger, Pearl & Associates
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