We all know the importance of a well-written employee handbook: it helps to define company expectations regarding performance and conduct; it serves as a means of formalizing company rules so all employees are held to the same standards; and it provides general information about the organization as well as the benefits and services the company has to offer. There are a multitude of reasons for creating an employee handbook. But, if developed and implemented incorrectly, an employee handbook can do more harm than good.
Below are the 10 most widespread employee handbook mistakes and what you can do to avoid them:
1. Failure to clearly publicize an employment at-will disclaimer. Employment at-will disclaimers make it clear that you, as the employer, do not intend to have the handbook construed as a “contract” or promise of employment. They protect employers from claims of termination in breach of contract claims. To be effective the disclaimer should state that nothing within the employee handbook is to be construed as a contract, that employment is at-will and either the employer or the employee may terminate the employment relationship at any time with or without cause, and that written or oral statements made to the employee are not to be interpreted to alter the at-will relationship. The disclaimer should be prominently featured in the handbook and written in large boldface type.
2. Failing to regularly update your employee handbook. Creating an employee handbook and then letting it sit on the shelf would be a waste, right? Surprisingly this pitfall is all too common. Employee handbooks that are out of date and no longer consistent with company practices are useless - and may even leave the company susceptible to legal liability. Regularly updating your handbook will help to ensure that it remains compliant with applicable laws and that it is still meeting your needs. It’s recommended that employers review their handbook at least every 12-18 months to ensure compliance with current legal requirements.
3. Not consistently applying policies. Administering a written warning, for example, to one employee because he or she has been absent three times within a month’s period, while terminating another employee for the same offense will likely be viewed as discriminatory. Policies are intended to ensure everyone is treated fairly and that all employees are held to the same standards. It’s important to train your managers to consistently respond to situations and to always follow company policy. Meet with company supervisors and educate them on the policies included within the handbook, the purpose behind each policy, and how the policies are to be enforced.
4. Failing to obtain employee acknowledgment. Having a handbook is one thing, but holding your employees to the policies included within it is another. Handbook acknowledgments are important in order to ensure that all employees have read, understand, and are prepared to comply with company policies. The acknowledgment form should contain language that employment is at-will and that the employer retains the right, in its sole discretion, to modify, alter or amend the handbook at any time. Once signed, keep acknowledgment forms in employee personnel files.
5. Ineffectively communicating the employee handbook. After spending the time developing an employee handbook, it’s important to also spend the time communicating its contents and purpose to your employees. Never assume that your employees will become familiar with your company handbook on their own. You should demonstrate the importance of the employee handbook as a communication tool by setting aside some time to discuss its contents with employees and answer any questions they may have. Because employees may have some apprehension with regards to its implementation, inform them that the handbook is intended to protect staff as well as the company. And remember, not only is the initial introduction of an employee handbook important, but so is the on-going introduction of the document to new employees. Be sure to incorporate a review of the employee handbook into your orientation practices.
6. Leaving some wiggle room. Leaving too much to interpretation is never a good idea. Be sure your word choice is effective, your language is clear, and that the company is protected. If you are too vague employees may interpret policies differently than you intended. And should it come to this, the courts may side with the employee if he or she reasonably misinterpreted company policy.
7. Being too specific. Just as being overly vague can be harmful, so can being too specific. It’s important to avoid exhaustive lists. For example, including a list of the behaviors that may result in disciplinary action is not recommended unless you state that the list is only intended to provide examples of the types of behaviors that may result in disciplinary action and that it is by no means exhaustive. In addition, employers cannot be expected to think of all circumstances and mitigating factors, so it’s important to include statements regarding managerial discretion of the policy’s implementation.
8. Only focusing on federal requirements. Failing to take into consideration state-specific laws when developing your handbook could put your company at risk. Often time’s state laws provide for greater employee protections than do federal laws. For instance, many states have recently added sexual orientation as a protected class under their equal employment opportunity laws. If your state has included this provision, failure to state that you do not discriminate based on sexual orientation can pose a problem and leave you susceptible to discrimination claims. Make sure your employee handbook is geared toward your federal as well as your state requirements.
9. Failure to promote the company. All too often employers use the handbook to communicate company rules and regulations, failing to capitalize on the opportunity to market the company. The employee handbook doesn’t need to just be a book of rules, put a positive spin on it! Let employees know exactly why it’s so great to work for you; clearly communicate company benefits packages and employee perks.
10. Failing to write for the masses. Your handbook should be written on a level that all employees will understand. To ensure your staff is getting the right message, use language that is easily understood by all your employees; writing on a fifth grade reading level is recommended.
11. Employee handbooks are excellent communication tools. But, when drafting a handbook, employers must be sure to exercise care. Factors such as word choice, policy selection, and the consideration of state and federal laws all affect your handbook’s clout. Don’t let these common pitfalls hold you back!
Trish Dougherty has greater than 25 years of successful leadership experience and is Senior Vice President & Principal for The Weston Group located in Sioux Falls, SD. Dougherty has a background in executive human resource management and is also a licensed Registered Nurse. Dougherty also served as an Officer in the United States Army Nurse Corps for 10 years. Dougherty travels and speaks nationally to assist small to medium size organizations with organizational effectiveness involving their most important asset – their employees. Trish can be reached at Trish@TheWestonGroup.com or 605-275-4747. http://www.thewestongroup.com/.
