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The role of employee handbooks in business success

by | Nov 16, 2023 | Employment Law - Employer

Building a great team is necessary for success in the business world, but it can also be a considerable challenge.

An up-to-date employee handbook can cultivate an inclusive workplace culture that fosters engagement. Furthermore, handbooks help companies remain compliant with anti-discrimination laws and employment regulations.

Promoting success

Orienting recent hires and newly promoted employees is important for your company’s success. New employees need around six months of adjustment when starting a job. This onboarding period costs businesses $1,400 per hire on average. Your handbook can help your team understand the company’s values, goals and expectations. Clear guidelines on conduct, dress code and communication policies reduce confusion. This clarity leads to a smoother transition during onboarding, easily integrating new team members into the company culture and workflow.

A comprehensive handbook can also provide a transparent overview of compensation, benefits and growth opportunities. When your team knows the processes for performance reviews and improvement plans, they are more likely to feel secure in their roles and stay with the company longer.

Mitigating legal risks

Employee handbooks play a crucial role in safeguarding businesses from legal entanglements. They detail the company’s adherence to employment law, ensuring management and staff understand their rights and obligations. By outlining important policies, handbooks can help you avoid compliance issues.

A static handbook can become outdated as employment laws change. To maintain its relevance, your business should regularly review and update the document. This ensures that your handbook reflects the latest company practices and legal standards. It is also necessary to communicate any changes to the handbook to your team.

As an employer, you can benefit from developing a comprehensive and engaging employee handbook.