5 Reasons Why Your Business Needs an Employee Handbook

The employee handbook is essential for every business. In it, you will detail everything your employees need to know. From corporate dress code to harassment policies, the employee handbook is a vital resource for both employees and business owners alike. But why is having a formal employee handbook really so important? It’s not as if it is an actual contract, although it may be construed as such, and it is important to make sure that your employees provide their signature to acknowledge they have read it through. If you aren’t sure, there’s no need to worry. We’re here to discuss exactly why an employee handbook is so beneficial for you and your business.

1.  Allows new employees to get familiar with your company

One way to think about your employee handbook is as a welcome brochure for your employees. Since the handbook is one of the first documents your employees will read through and sign upon coming aboard, it’s one of the first chances to show them what the business is really about. You can talk about corporate culture and provide helpful descriptions and explanations about the office, the business’s history and its leaders, as well as its mission statement and goals.

2.  Informs employees of all company policies

Along with being a welcome document for employees, the handbook will also be an important resource for employees regarding corporate policy. From detailing employee discipline structures to explaining harassment and termination policies, the handbook is a one-stop shop they can turn to whenever necessary.

3.  Details benefits plans

In addition to corporate policies, the employee handbook is another place where employees can turn to find out more information about their benefits. Not only should there be information about retirement plans, but it will also explain paid time off, sick days, and the different types of leaves available.

4.  Provides a defense against employee claims

The handbook isn’t just a resource for your employees, it is also a guard for you against employee lawsuits. It’s important because it will explain to your employees how your business and its policies are in compliance with employment laws. By explaining everything in detail and having your employees sign off on having read it, the employee handbook can act as a defense against erroneous or frivolous claims filed by or associated with any of your employees.

5.  Gives employees a safe space

Another key role the employee handbook plays is that it lets your employees know where they can go if they have a problem. Whether they need to report an issue with another coworker or talk with someone about a personal problem, the employee handbook will detail who they can turn to in their times of need.

Consult with an experienced California business law attorney.

In order to make sure your business is set up with the proper documents for your employees, it’s a good idea to consult with an experienced business law attorney who can make sure everything is good to go. At Integrated General Counsel, we provide outside general counsel services for California businesses of all shapes and sizes. If you need help drafting your employee handbook or other important documents, please contact IGC today!

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Written by Integrated General Counsel

Our focus includes handling a variety of corporate matters and also includes litigation in state and federal courts. Our current practice includes providing transactional services and representing a variety of small and medium-sized companies as their outsourced general counsel.