An employee handbook is a document given to employees by their company, containing job-related information, such as policies, procedures, working conditions and behavioral expectations, which employees must acknowledge and accept.

An employee handbook should be viewed as the “go-to” source for company and personnel information – from your business’s reporting structure and regulations to policies and procedures like setting up a direct deposit and accessing a laptop.

And, while an employee handbook is not legally required in any state, it is an important reference as you work to create a safe, healthy and productive environment for all employees.

Creating and maintaining an employee handbook is a best practice for any business. A well-prepared handbook can answer many of the routine questions that would otherwise end up on the desk of your company’s human resources professional. When employees get in the habit of checking their handbook before going to a supervisor, it also saves management’s time.

An employee handbook is also a valuable tool for providing employees with the information that, by law, must already be delivered in writing, such as your American with Disabilities Act (ADA) and Equal Employment Opportunity Commission (EEOC) policies.

Other terms companies use to describe this essential tool are staff manual, company field guide, and company reference guide. However you choose to title yours, the information within it needs to be clear, direct and legally accurate.

What should be in an employee handbook?

Employee handbooks typically include information about the business. Many begin with a welcome letter from the business’s leader, reiterating the company’s mission, vision, purpose and values, as well as the business’s commitment to its employees.

It should then go on to cover key culture and policy topics such as:

  • General employment information
  • Anti-discrimination and anti-harassment laws
  • Standards of conduct
  • Employee benefits
  • Confidentiality/Non-Disclosure Agreement/Conflict of Interest statements
  • Employee and employer responsibility for safety
  • Culture description, ethics, and code of conduct
  • Local and national government policies
  • Benefits and perks, including sick days, vacation time, and FMLA
  • Disciplinary action methods and at-will employment policies

General employment information

Outline the history and evolution of your business. Who started it? Why was it started? When did it open for business? Explain how it’s evolved over time. Storytelling is one of the most effective ways to engage your audience, which in this case is your employee.

You’ll also want to include general information on the business’s purpose, objectives, client base, and the overall “about us” information.

Anti-discrimination and anti-harassment laws and policies

Your employee handbook should make your business’ stance on harassment very clear, including potential disciplinary action. The Equal Employment Opportunity Commission (EEOC) website is a good resource for information on the legal definition of harassment and employer’s liability.

Standards of conduct

Your business’s standards (or codes) of conduct are primarily a set of principles designed to guide workers to conduct themselves with honesty and integrity as they relate to all actions that represent your business.

Employee benefits

Often, employee benefits are part of what attracts potential employees to your business. These benefits, such as medical insurance, PTO, profit sharing, and retirement benefits, should be clearly outlined in your handbook along with any special perks your business offers.

Confidentiality / Non-Disclosure Agreement / Conflict of Interest

Confidentiality: Instill and reinforce that confidentiality of fellow employees and business information is not to be discussed or shared with anyone outside of relevant stakeholders.
Non-disclosure agreement (NDA): A legally binding contract ensuring confidentiality during business operations.
Conflict of interest: Arises when a situation that benefits an employee adversely affects your business.

Employee and employer responsibility for safety

Safety is the business and responsibility of every employer. Address the mechanisms your business has in place to keep all employees safe, including education, training, and emergency protocols.

How to create an employee handbook

Every business’s employee handbook looks and sounds different depending on their policies and personality. It can be formal or conversational, but the tone should align with your company’s overall communication style.

  1. Develop company culture and values – Define your culture and values before writing about them. Align leadership on the set of norms, ethics, and conduct expected of employees.
  2. Form your policies – Establish policies covering equal opportunity, workplace health and safety, attendance, vacation, conduct, complaints, ethics, work schedules, and compensation.
  3. Research employment laws – Review U.S. federal and state labor laws, and consult legal counsel to ensure compliance.
  4. Create an outline – Identify and prioritize essential topics, then build a clear structure for the handbook.
  5. Find examples of employee handbooks – Review examples from other companies for inspiration and best practices.
  6. Producing a written handbook – Human resources should own the handbook, ensuring it stays up-to-date and easily accessible, either digitally or in print.
  7. Have it reviewed by a lawyer – Regular legal review ensures compliance with evolving employment laws.