Why on earth do I need an Employee Handbook?

handbookby Sadie Barker

Many entrepreneurs and small business owners simply don’t think they need a handbook. They associate handbooks with big corporations and think that if they have a handbook they will become the stodgy, oppressive corporation with 8-5 mandated hours, an hour for lunch and two 10-minute breaks (heavily discouraged, of course). Some small business owners feel their size doesn’t warrant a handbook: We don’t need a handbook; we only have a few employees; this is a family-run operation; we know what we’re doing; our employees love us; we don’t need a book to tell us how to run our business! What these owners fail to realize is that a well-tailored handbook helps a company tell its story. Yes, it provides the company legal protections, but more importantly it gives the company the chance to establish best practices and integrate employees into the company culture.

Just like you sat down to write your business plan (you did write a business plan didn’t you?) you are defining your business by putting pen to paper to say how you want things to work on a daily basis. Your handbook is where you tell your story. Stories are a human specialty, they give us a sense of belonging and direction. This is the opportunity to give new employees more than just the facts; the handbook puts them in context. Provide detail and bring your employees into the story when talking about the future. A new employee

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should finish reading your handbook with an understanding of your big picture and your internal brand.

This process may take some work, after all you know everything about your business but we find too often that responsibilities as an employer are sorely overlooked. The rules are different depending on how many employees you have, where you are located and whether or not you have government contracts. The policy sections (yes you do need policies) outline your day to day, but also give you the opportunity to highlight all of the great things you do for your employees. Some of this is pretty basic, clarifying the dress code or expectations of office hours, but that doesn’t mean that they’re not worth the effort. People need to know what is expected of them if they hope to succeed. Other things, like your legal

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obligations, may be more complicated depending on your circumstances, so don’t be afraid to reach out for help – getting a handle on these details ensure that you are not putting your company at risk and the risks can be significant.

A great handbook serves not only as an employee manual but as setting the tone of your culture. You wouldn’t classify your business as a one-size-fits-all, why should your handbook be? It may seem easier, upfront, to just download a PDF and “insert-name-here,” but here lies a huge missed opportunity (and often overlooked liability). Good culture isn’t accidental, but bad culture always is. Some learn the hard way that great business cultures take intention and effort. Your company handbook should double as your roadmap to bring your values through to the company and reinforce your voice. Through your handbook:

The personal beliefs, assumptions, and values of the entrepreneur or founder are imposed on the people he or she hires, and – if the organization is successful – they come to be shared, seen as correct, and eventually taken for granted (Schein, The Corporate Culture Survival Guide).

Not only does a handbook set the culture for a company, it lays the foundation for the future. Your strategy is only as good as your people and your people are only as good as your culture. Placing your innovative efforts into the people elements of your business is the driving force behind results. Putting intention and effort into your internal brand is a fine place to start.