Tips for Your Company Handbook: Put Your Policies in Writing

If you've ever found yourself lecturing an employee about tardiness, absenteeism, personal phone calls, and so on, you've already formulated company policy. Now it's just a matter of putting pen to paper to make it official.

Writing a policy handbook is not a project to take lightly. In some states, an employee handbook is considered a contract, and any deviation from it may be construed as a breach of contract by the employer. Before you print copies, have a lawyer look over the handbook for potential liability problems.

Many advise formulating two distinct handbooks. The first, an administrative policy and procedure manual, is directed at management. It details the company's philosophy and how managers should deal with personnel policies. Based on this manual, the company develops its employee handbook. The employee handbook essentially puts the administrative policy procedure manual in simple terms.

A thorough employee handbook should include:

Job descriptions. Give a general idea of what you expect from an employee in a certain position. At the same time, make it clear that just because a duty is not listed doesn't mean an employee with never be asked to do it. To be on the safe side, include the phrase such as "and any other duties requested" at the end of a job descriptions.

Salaries and bonuses. How often are raises given, and on what basis-merit or seniority?

Promotions. How can an employee advance in the company? Certification? Technical training? Is a college education necessary?

Probation. What is the length of probation for a new employee? How does the employee's relationship with the company change when the probationary period ends?

Discipline. What happens when one of your employees breaks a rule? Are there probationary actions? For example, you may opt to put an employee on notice for a first offense, suspend for a second offense and fire for a third offense.

Dismissal. What are automatic grounds for dismissal? Two items come to mind immediately: theft and alcohol or drug abuse. Spell out your company's drug policy in the handbook. State clearly whether drug searches or testing may occur.

Interaction with outside sources. Many companies require employees to route media inquiries through a central source instead of giving out company information. This protects against trade secret theft and other security risks.

Put It on Paper

Now that you know what type of information to include, the next step is to actually write the handbook. From a technical standpoint, loose-leaf binders make the most sense for policy handbooks, since you can revise them as often as necessary without costly reprints.

Here are a few rules for formulating a policy handbook:

Toot your own horn. Open with a history of the company, its achievements, clients and goals. What is your company's general mission? Think of this first segment as a public relations tool aimed at your first word-of-mouth contact: your employees.

Keep it simple. Remember the object of the book is to get your ideas across. Write in the most direct, easy-to-understand manner you can.

Emphasize key points. Important points should appear several times in the book, perhaps on a separate page for emphasis. For example, if it's your policy that employee drug use will not be tolerated, type on one page in bold print, "Evidence of employee drug use is grounds for immediate dismissal." You can't be more direct than that.

Don't make idle threats. If you plan to send a drug abuser to a rehabilitation clinic for a first offense and fire on the second offense, don't state in bold letters that you will fire on the first offense. Rather than deterring drug use, it hurts your credibility. You may regard your leniency as human kindness, but in the worst-case scenario, it could land you in court. If you won't follow through with firing on the first offense, state something to the effect of: Employees may be fired." This gives management a little latitude.

Include disclaimers. State clearly that you do not regard the handbook as a binding contract with the employee. That way, if you ever want to change a policy, an employee cannot claim the handbook binds you to the written policy for the duration of her or his career.

When you've completed your draft of the handbook, have your lawyer review it. It's also a good idea to review the book every few years with legal counsel to see how recent court rulings may affect it.

Finally, give your employees time to read the manual, and have them sign a document saying they have read and understand company policy. This will save you a lot of heartache and, hopefully, take you off the office lecture circuit.