Your Employee Manual Safeguards Your Employees and Your Business ...

The day you hire your first employee is the day you put together your employee manual.

Your manual is specific to your business and lays down the rules under which your business operates in regard to its staff.

The benefits of having a well planned and easy to read manual far outweigh any possible detrimental use by disgruntled employees.

Provided of course, all your employees are treated in the same way, and according to the rules laid down in your employee manual.

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The single most common cause of labor law suits is not treating all your employees equally.

Employees filing lawsuits against you can be one of the major down sides of running a small business, if you don't move to prevent the causes of such lawsuits in the first place.

If you have no rules or policies regarding labor in your business, then you will be inconsistent when dealing with individual employees. And this leads to confusion, dissatisfaction and eventually law suits.

Hopefully, that made the point as to why you must have an employee manual. Basically, if you don?t treat Jack the same as Jill you are inviting trouble.

So, what do you put in your employee manual and how do you plan your manual. It's not difficult if you go about it logically.

Your Employee Manual and what to put in it.

Remember each business needs different and specific content to meet the needs of that business.

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Every business however, needs a well constucted and simple to understand employee manual that gets across the two main messages ...

  • What do you, the employer, expect of your employees in any given situation
  • What do you expect from your employees in the same situation.

A good employee manual will ensure that both messages are put across and understood clearly.

Okay, now lets take a look at what needs to be done.

  • Before starting on your manual, write up an outline listing all those things that should be included in your employee manual. Get these into some sort of logical order.
  • Include a disclaimer at the front of the manual, something along these lines "the employee policies included in this manual are subject to change and such change can be with or without notice". This disclaimer may help reduce the potential for lawsuits.
  • Check with your trade association regarding a sample manual. Many trade associations will be happy to supply you with a sample employee manual that will cover most of your business needs. Manual templates can also be sourced online.
  • Cover all the elements of your business that will affect your employees such as ...
    • Working hours and overtime policy.
    • Performance evaluation policy, covering times and effects.
    • Pay increases.
    • Salary scales if applicable.
    • Sick days policy.
    • Vacation time, including any restrictions on times that vacations cannot be taken.
    • Any other employee benefits. Be careful here, if you give Steve special treatment, not given to others, the potential for a lawsuit is increased.
    • Grievance procedures: If an employee feels aggrieved, what should they do?
    • Employee misconduct: Make sure that your employee manual clearly states behavior that will not be accepted at work. This includes all types of discrimination, and especially sexual misconduct.
    • Work Rules: Mention any off-limit areas. Wearing of protective clothing. Cover any housekeeping rules.
    • Dismissal Policy: Clearly lay out your policy on the offences that will lead to dismissal. These could cover such offences as employee theft, drug taking, drunkenness, persistent lateness, fighting, etc. Do not beat around the bush here, forget "further action will be taken" statements, and state simply, "if you do this you will be dismissed."
  • If you have a procedures manual or a health and safety manual as separate documents, mention them in your employee manual, stating that it is the duty of the employee to read and understand them. If you don't have separate manuals, then cover these subjects in your manual.
  • If any of your employees have access to a company computer, you must include an employee internet policy for your business in your employee manual. Lay out what is acceptable computer usage and what is not.

And thats the basis of a simple and effective employee manual. Now take it to your friendly lawyer and get him to check it for possible errors. You don?t want to find that you have stated, in writing, that you are going to be breaking the law so get it checked.

Make sure it is easy to read. Remember to gear it towards the educational level of your lowest grade employee and issue every new employee with a copy when they start working for your business.

Distributing Your Employee Manual ...

No manual is fixed in stone and all employee manuals need revision and updating as your business grows and matures. Be sure to make it look professional, but consider the costs.

Keep the printing costs down but ensure that you have enough copies for each and every employee in your business.

Decide how you are going to present your manual to your existing employees. Maybe, hold a meeting of all employees and go through the manual and explain its purpose and its contents.

Make sure that all your employees receive a copy and from then on ensure that all new employees also receive a copy.

Tell all your employees that you will expect them to read the manual and then get them to sign a note to that effect and confirm that they will abide by the manuals rules and policies.

Of course a manual is only as good as you make it and can only be meaningful if you yourself insist that its policies are applied to each and every employee as well as to yourself.

Why you need an Employee Manual ...

I have left this to last but it needs to be covered. If you have doubts about the need for an employee manual, you are not the only one.

In today's world of litigation anything you put in writing can and will be used against you. So why have an employee manual that could be loaded with liabilities?

Here's why you need a written employee manual.
  • Without written policies and procedures you have a business that is based on all the past actions of the company, both good and bad. A dangerous minefield for lawsuits.
  • Without an employee manual, each and every employee will have a different idea of what's right and what's wrong. Nothing will be done in the same way. No one will know what is expected of them or what they can expect in return.
  • If there are no procedures laid on how to deal with events that will happen in the workplace. Every time something happens, a new procedure will be introduced, possibly very different from the last one.
  • Employee Discipline : Without a written procedure supervisor-A will discipline Jack in one way while supervisor-B will discipline Jill in another way. Result Discrimination and Your business suffers the lawsuits.

If you want to effectively manage your business and your employees, YOU need to lay down YOUR policies and procedures in an employee manual.