10 Employee Handbook Mistakes Made by Small Businesses

All businesses with employees will benefit from having an employee handbook. Writing your company’s policies and procedures requires you to spend less time answering questions and explaining the rules and regulations of the office. Having a standardized employee manual will also lessen your chances of ending up in court.

To help you prepare an appropriate manual we’ll highlight some common mistakes that typically occur during the creation of employee handbooks, as follows:

Not having the handbook reviewed by a lawyer. There are many ways to state your policies, some of which may be vague or potentially misconstrued and leave you open to potential legal issues. Have an attorney who is well-versed in employment law review your handbook before designating it as complete and distributing to your staff.

Not taking into account federal and state laws. It is imperative that laws such as the Family Medical Leave Act, among others, are not mis-stated in your handbook. You also want to insure that your company policies are not violating personal rights. Both of these items are another reason to have an employment lawyer review your handbook prior to distribution.

Creating the long version. While you want to cover all of the essentials, you also don’t want to go into such great detail that you hand employees a novel that they’re unlikely to read. You want employees to be willing to become familiar with the contents. 

Not providing a means by which employees can complain about harassment or discrimination. The law requires that employers provide an opportunity for employees to voice such complaints as well as having a process in place by which their complaints will be addressed.

Failing to read such a handbook first. There’s no need to re-invent the wheel when you develop your company’s handbook, there are plenty of employee handbooks available to read as well as templates that can be found to help you construct yours. Review employee manuals from other companies and take advantage of available tools to help you in the development of your company’s employee handbook.

Failing to update your handbook. At least once per year, your company should update its employee manual – more often if there have been significant changes in company policies or laws related to employment.  Reasons to update your employee handbook typically include new laws, new technology, and various changes in how you conduct business.

Not having a disclaimer. A disclaimer prevents an employer from being boxed into a corner. Without a disclaimer, the handbook can be construed as a contract. There needs to be some room for the employer to use discretion and work within the general guidelines of the handbook. Therefore, do not make the mistake of neglecting the inclusion of a disclaimer for your company’s protection.

Not using straightforward language. If the handbook is too vague or technical and not clearly understood by employees, then it won’t serve its’ intended purpose. Instead of writing it in ‘legalese’, make sure everything is easy to understand and reader-friendly.

Not tactfully introducing the handbook to current employees. In order to prevent concerns among the staff that their jobs may be in danger, make it clear to employees that the handbook is just a means of clarifying procedures and policies so that everyone is on the same page. Be prepared to answer questions regarding the handbook.

Failing to make sure all employees have a handbook. You should have everyone sign off that they have received the handbook and keep the sign-off sheet in their employee files.

Resources for Developing Your Company’s Employee Handbook:

For more information helpful in preparing an employee handbook, see the Employment Regulations section and the Employment & HR Center of Allbusiness.com. For an employee handbook checklist, see the Employment Policies and Termination section of the AllBusiness.com Forms & Agreements Center.

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Sources for Start-ups to Find Employees

One of the many challenges a start-up company faces is finding the staff they need – at an appropriate experience level – when they typically can’t afford to pay them what they can command on the open market; additionally, finding people who are willing to stake their livelihood on a start-up company.

The following sites are designed to help alleviate this challenge. The goal of each site is to match start-up companies with job-seekers, consultants, free-lancers, etc. who are specifically interested in working with start-up firms – and in some cases are willing to work for equity.

StartupAgents.com

StartupJobs.biz

Startuply.com

StartupZone.com