How Does a Large Company Write a Great Employee Handbook?

“Employees are a company’s greatest asset – they’re your competitive advantage. You want to attract and retain the best; provide them with encouragement, and stimulus and make them feel that they are an integral part of the company’s mission–” Anne M. Mulcahy, former CEO of Xerox corporation. 

One of the key ways that companies bring out the best in employees while protecting the company legally and financially is by having in place a great employee handbook. An experienced Naperville, IL business lawyer can help you draft your large company’s employee handbook.

Why Should Companies Have an Employee Handbook?

Employee handbooks are a business tool. They provide detailed information about company policies, culture, and procedures, and communicate a company’s expectations of employees. Employee handbooks also outline the laws and regulations applicable to employees, such as the Family Medical Leave Act (FMLA). Companies should have employee handbooks in place to create a culture of legal compliance, communicate expectations to employees, and begin building a cohesive workplace culture from day one. 

What Makes a Great Employee Handbook at a Large Company?

A great employee handbook is detailed and comprehensive. It is written in a clear language and tone. In the best of cases, an employee handbook not only communicates information but reflects the company’s voice and culture. This requires thought and strategic planning. A great employee handbook does all the following:

Welcomes Employees and Provides the Company’s History

Although employees may turn to employee handbooks throughout their employment, the employee handbook is first given to new hires as they begin their employment. That is why an employee handbook should include a welcome letter and a brief history of the company. This is a chance for the employer to share its organizational vision and corporate values and set the tone for the employee from the start.  It can also instill a sense of pride in the place of employment that can strengthen company culture and employee motivation. 

Employs a Consistent Style, Aligned with Company Culture

An adequate employee handbook contains the necessary policies and procedures. A great employee handbook does so with a consistent style and flare that is aligned with company culture. The handbook should be written in a tone reflective of company culture (whether the company culture is informal or formal, for example) and be easy to read and engaging. It should be visually appealing and reflect the company’s brand. 

Contains Detailed Information About Company Policies and Standards

This is perhaps one of the most important sections to include in an employee handbook. It serves not only to mitigate a company’s legal risk but to create a culture of compliance. Employees are advised from the get-go of their legal rights and the company’s legal obligations towards them. This can also serve as a dispute-resolution mechanism because employees will have all the information they need to turn to management or human resources in the event they see something that does not align with company procedures.

Moreover, by putting these policies in black and white, the company is broadcasting its commitment to adhering to these standards. Here the company can detail its policies related to:

• Employee classification
• Meals and breaks
• Timekeeping and overtime
• Worker’s compensation
• Leave of absence
• Remote work
• Whistleblowing or reporting policies
• Health and safety policies 
• Privacy and security
• Anti-harassment and discrimination 

One especially important area here concerns labor and employment laws. The company’s policies should ensure compliance with applicable federal and state employment laws, and be drafted in such a way that they advise the employees about the company’s expectations that they comply with the law and provide guidance on how to comply. 

Provides an Employee Code of Conduct

Closely related to company policies and standards is a code of conduct, which should lay out the company’s expectations for how employees behave. The goal of a code of conduct is not only to mitigate legal risk but also to encourage a safe and healthy work environment. It should address ethical considerations such as equity, honesty, inclusion, conflict of interest, dress, social media use, and the like. 

Communicates Company Benefits, Perks, and Compensation

A crucial section to include in the employee handbook lays out the company’s benefits and compensation. This should not just be limited to salary, but include other benefits that make up a total compensation package, such as paid time off, sick days, bonuses, stock options, vacation days, opportunities for remote work, flexible spending accounts, education assistance, insurance and commuter benefits, and any other bonus perks such as company cafeterias and other resources. 

Communicates Realistic Performance Expectations

While including all the relevant material is essential for any employee handbook, a great employee handbook endeavors throughout to communicate realistic expectations by communicating clear and attainable policies. Additionally, the employee handbook should include realistic information about performance expectations. For example, the employee handbook could explain the company’s expectations of employees in the first month, six months, and year of employment. It should also discuss company policies for promotion advancement, as well as in the event corrective action is needed. It should also detail grounds for termination (within the framework of at-will employment). 

Contains an Acknowledgement Form

A great employee handbook contains an acknowledgment form that the employee must sign and return to human resources. This form can also reiterate the at-will status of employment, and advise that management can amend the policies at any time. 

Is Updated Regularly 

A great employee handbook is never done. That is to say, employee handbooks should be reviewed and updated regularly to ensure continuing compliance with the law as well as to account for any changes in company culture, policies, and perks. 

Call a Naperville, IL Business Attorney

A strong employee handbook is crucial to creating a culture of transparency and success among employees. Additionally, it ensures that company policy is clearly communicated and protects companies from potential legal action. That is why hiring an experienced Naperville, IL business law attorney to put in place a great employee handbook is a win-win proposition for your company. At Gierach Law Firm, attorney Denise Gierach is ready to speak with you at 630-756-1160 about your company’s employee handbook.