Creating an Employee Manual for Small Business

Whether you own a company that manufactures furniture and fixtures or automotive parts, you will need a well drafted employee manual. In fact, this handbook is an important communication tool with the help of which an employer states the terms and policies of his/ her business. It also states the acceptable and non-acceptable behaviors within the organization as well as their possible consequences. Apart from describing your expectations from your employees, an employee manual also help the business owners to fight against legal liabilities caused due to misstatements or misunderstandings. Thereby, you need to draft your employee handbook very carefully.

First and foremost, decide the topic and subjects and you want to incorporate, apart from the welcome statement. Give a brief description of each topic. Make sure each topic contains enough information in order to avoid confusion. You must also be aware of the various employment laws while writing an employee manual. The following are some of the topics that you need to incorporate in such a handbook.

1. Employee attendance and leave policies: By stating the attendance and leave policy of your company you can avoid confusion regarding attendance expectations. Also mention the work hours and the official “in” and “out” time. Clearly state the leave policies including the total number of leaves an employee is entitled to have as well as their procedures. If possible give a detail list of yearly holidays. In addition, state your over-time policies.

2. Confidentiality and using company's property: Every company deals with certain sensitive and confidential issues. Thereby, it is advisable to tell the employees in advance about their legal obligations. Also mention that failing to comply with this policy will call for disciplinary actions. Similarly, state whether or not they are allowed to use company's property for personal reason with/ without prior approval. Also mention whether they are allowed to download software, open certain sites, use mobile phones, pen drives, or other devices within the office.

3. Payroll processing: It is advisable to brief your employees regarding your payroll processing in advance. Mention the salary cycles, the deductions, incentives, and other details. Also mention how you are going to make the payment, i.e. through paychecks or salary account. If it is a salary account, mention the name of the bank.

4. Performance review: This is one of the most essential information. Every employee look for promotions and hikes in their salary. State the performance review cycle as well as the parameters.

5. Special privileges: There are some companies that offers certain privileges to their employees. This may include group insurance and medical contributions, retirement policies and tuition assistance. If you too offer some, mention them. Also outline the parameters and conditions for such privileges. For example if you are offering cab facilities to certain employees, mention the reason. Whether it is only for female employees, or for those working at night shifts. This way you will eradicate any scope of creating discrimination within the organization.

In addition you can mention other company policies in the employee manuals. This may range from dress codes to employee safety and accident rules. But remember to phrase every word carefully as it is a legal document that can be used by any party in case of a lawsuit.