Employers Report Reduced Exposure To Employment-Related Lawsuits Through Use Of Employee Handbooks

In a recent HR study by Cornell University, small businesses with employee handbooks reported fewer misunderstandings with employees, higher levels of employee satisfaction and were better protected in the event of an employment-related claim.

According to the Small Business Administration, an employee handbook is one of the most important communication tools between a company and its employees. Not only does it set forth expectations for employees, it also describes what they can expect from the company.

All small businesses need to have an employee handbook that clearly lays out the company’s goals and mission, expectations of employees, ethical standards, employment policies and business standards — as well as information about compensation, benefits, time off and workplace safety. It should also include federal, state and company-specific-related policies. Unfortunately, a great many still don’t, or have outdated handbooks or just scraps of paper listing policies and important company information. They fear the process of creating an employee handbook will be too time-consuming, or they just don’t realize how important a handbook is.

As part of its efforts to help small businesses optimize their HR practices, Staffscapes works with clients to develop an employee handbook that accurately reflects their company’s goals and expectations. Our HR Consultants meet with new clients to review any existing manuals and develop a new manual. The process begins with the client completing a worksheet. Then, based on the results, Staffscapes creates a customized handbook, which the business can distribute to all new employees and place on its website. Additionally, Staffscapes provides businesses with compliance updates so they can keep their handbooks current.