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The Importance of an Employee Handbook

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One of the questions I answer the most is “Does my organization need a handbook?”   Yes, every organization should have a set of written policies so everyone knows what is expected.  A policy can be in a formal handbook but could be shared with employees in other ways, including posting on a bulletin board.  

I recommend a handbook that gives direction on topics that matter to the employer – attendance policy, technology policy, leave policy, conduct policy, and other important topics. Not only does a handbook set expectations, it is the first opportunity to begin to establish a good organizational culture.  The handbook establishes what is important to the organization and how things should operate.  If someone offers a “standard” handbook, decline it. A handbook should be unique to every organization.  The entire purpose of the handbook is to have good communication.  There cannot possibly be a set of identical rules that works for every workplace. 

An equally important consideration is the practices within an organization.  A practice can be the same, similar or very different from the written policy. The policy is how management says things should work. The practices of an organization refer to how things actually work.  It is better to have a short list of policies and consistently enforce them than to have a 30 page handbook and ignore it.  Inconsistency creates legal risk and destroys a good culture.  Inconsistent enforcement of rules can create animosity amongst employees. It can also hinder productivity and create distractions.

An example is helpful here.  The Canoe Company has a policy that requires employees to be on time for work and only call off when they have a medical excuse.  The policy says employees will be terminated if they have more than two unexcused absences within six months.  The supervisors do not enforce this rule consistently.  The supervisors say they “use their best judgment” and consider “the value of the employee to the team.”  Carolyn is 42 years old and is  new to the organization. She is a slow worker. She calls off for the third time in six months with no medical excuse. Her supervisor wants her to be terminated.  A male employee who is 35 years old called off the same number of times during a four month period but was not disciplined at all.  If the company disciplines Carolyn including termination, she now has potential claims against the organization. She might bring a successful age or gender discrimination claim.  The policy was enforced against a female over 40 and not against a male under age 40.  Even if the organization “wins,” it will be time consuming and costly to win.  If they consistently enforced the rules against everyone the problem would be avoided completely. 

Take a good look at your handbook. Is it current?  Does it outline how employees should conduct themselves? Is it missing anything major that is a current problem?  Establishing rules and consistently enforcing them is a big area of concern for many organizations. It is also one of the most costly problem areas. If your organization does not have the internal expertise to write the handbook AND to train your supervisors/managers to follow the rules, consider getting a professional involved. It will surely be cheaper than litigation.

Tommie Jo Brode is the President of Venice Solutions Group, based in Hudson, Ohio. The firm was founded in 2021 with a commitment to good workplace communication, best employment practices, and promoting common sense solutions. Venice Solutions Group helps public, private, and non-profit organizations solve small problems before they become bigger ones and address big issues before they become more costly. Learn more at venicesolutionsgroup.com.

Tommie Jo Brode

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