Having an employee handbook is an essential component of effective human resources management for any business. It serves as a comprehensive guide that outlines company policies, expectations, procedures, and relevant information for employees. It becomes the basis for firing someone and can help avoid paying unemployment insurance. Here are some compelling reasons why a business should have an employee handbook:
Communication of Expectations: An employee handbook communicates the company's expectations, values, and policies to all employees. It sets clear guidelines for behavior, conduct, and performance standards, fostering a cohesive work culture. Failure to adhere to these policies is grounds for termination. Without a handbook, firing someone is more difficult as they can claim they didn’t know it was company policy.
Legal Compliance: An employee handbook serves as a legal document that outlines the rights and obligations of both employees and the company. It can help demonstrate compliance with employment laws and regulations, reducing the risk of legal issues or potential lawsuits.
Background checks/Drug Testing: This helps mi:gate the risks associated with hiring individuals with a history of crime and drugs. Screening candidates before employment, can help ensure the safety and security of the workplace, employees, and customers. However a business can’t perform Background checks/Drug Testing if it is not permitted in the handbook.