How to Make an Employee Handbook (Best Practices, Samples & Templates)

An employee handbook is a document that is drafted for prospective employees and applicants as a guide to a company’s mission, values, policies, and SOP. Employee handbooks are useful in protecting an employer from allegations of discrimination. Employees and job applicants are similarly protected as employee handbooks provide a clear-cut description of the company’s modus operandi and transparently outline useful information like employer expectations and standards. 

Creating an employee handbook is challenging. Not only is an employee handbook a direct reflection of your company and its fundamental values and mission, but it is one of the first interactions that prospective employees will have with your company. The precise wording of your employee handbook must also be meticulously conceptualized to avoid misunderstandings and confusion on the employee’s side!

In this article, we will dive into the complexities of a well-crafted employee handbook and will tell you everything you need to know to create a contained and comprehensive employee handbook that you can use as the face of your company!

An employee handbook relays your company’s expectations, goals, and measures of success. Employee handbooks are usually publicly available so that both current and prospective employees can understand your company's operation and standards!

From an employer's perspective, an employee handbook can protect against misunderstandings or formal proceedings filed against you in the event an employee feels like they have been wronged by your company. Whether it be a misunderstanding on paid/unpaid days off, or a mix-up of the dress code, an employee handbook contains all the information an employee needs to know to operate at your company daily. 

Given the significance of the material, the contents of an employee handbook should always undergo a serious editing and revision process, with the final version being vetted by a legal professional!

Although an employee handbook can provide a legal safety net for employers, it is not a required document. If you do not have the resources to make a legally sound employee handbook, it may benefit you not to include one as part of an employee’s package. Poorly written employee handbooks can leave you liable for lawsuits down the line. 

Let’s begin by going over the basic points that must be included in an employee handbook.

Employment type

In this section of your employee handbook, delineate the different forms of employment that your company offers. Employment may be full-time, part-time, an apprenticeship, or an internship. Including this in your employee handbook is important so that employees clearly understand which category of employment they fall under and the benefits/responsibilities that have as a result. 

Statement of Equal Employment Opportunity (EEO)

The Statement of Equal Employment Opportunity (EEO) in an employee handbook is an expression of the company’s commitment to equality and non-discrimination in the workplace. An employee handbook tells employees everything they need to know about the company they work for, and the EEO ensures that they are treated fairly and equitably at work!

The EEO in an employee handbook covers an employee's rights to not be discriminated against due to their age, gender, sexual orientation or identity, ethnicity, religion, or medical status. The EEO also covers how employees can settle disputes arising from company-side breaches of the aforementioned conditions. 

General recruitment process

This section of an employee handbook outlines the process through which new hires are found and onboarded. This employee handbook section is of particular importance to new hires or job applicants as they can get a good understanding of the steps of the hiring process. 

For instance, a referral program can be included in the employee handbook. Such programs encourage current employees to recommend qualified people that they know to apply to the company. Referral programs are beneficial to both the employees and the employers as the former gain financial benefit and the latter gain qualified talent. 

Policies & Regulations

A ubiquitous part of an employee handbook is the section outlining the various policies and regulations of the company. Here are a few of the most important policies that should be covered in your employee handbook. 

• Attendance: This section of your employee handbook should clearly set out the working hours expectations and the procedures/conditions that an employee can request time off
• Confidentiality: The confidentiality section of an employee handbook is a statement guaranteeing the privacy of employer-employee, client information, and private company information and that the personal information of employees is well-protected by the company. The confidentiality policy in your employee handbook should be tailored specifically to your company and include the necessary conditions your company needs to meet to secure employee and client information at the highest level possible.
• Harassment & Violence: A policy protecting employees against harassment and violence in the workplace is an essential part of an employee handbook. Employees should feel safe and protected within their workspace. Acknowledging and acting on this should be a priority for your company, and your stance against violence and harassment must be included in your employee handbook, both for professional and legal reasons. Your employee handbook should clearly outline the parameters of violence/harassment and the consequences of such acts. 
• Workplace safety & health: Similar to the previous section, the workplace safety and health section of your employee handbook should state the measures your company is taking to comply with the health and safety laws of your country and protect employees in the event of emergencies. Examples of policies to include in your employee handbook are policies for smoking, mental health, and drugs. 

Company’s code of conduct

The employee handbook's section outlining the company’s code of conduct should illustrate the ways that employees are expected to behave in how they treat their colleagues, clients, and any other individuals they interact with during working hours. Some subsections you can include in your employee handbook code of conduct include policies for dress code, employee relationships, use of company/personal technology and devices, conflict of interest, and workplace visitors.

Compensation

Compensation and its terms of distribution should always be included in an employee handbook. This section of your employee handbook should specify details such as overtime rules, date of salary distribution, and, most importantly, the metrics by which performance is measured and the ways that employees can move up the ranks of the company! Properly done, this section of your employee handbook will go a long way in terms of motivating performance in your company. 

Benefits & other perks

Financial compensation is great, but benefits and other perks as a part of overall compensation can really sweeten a deal! Employee handbooks should outline the various benefits that being an employee at your company affords. Oftentimes, employees are unaware of the extent of their benefits, so this section of your employee handbook will help them stay fully informed. 

The benefits that you include in your employee handbook are highly dependent on your company, but some commonly included perks include insurance, paid leave, parking, the ability to work remotely, and access to company equipment (i.e. phones, cars, computers, etc.)

Working hours, PTO & vacation policies

To avoid confusion and potential lawsuits, it is standard for employee handbooks to include the stipulations for time off and paid leave from work. Your employee handbook can include the company’s policies for paid leave, vacation days, maternal/paternal leave, bereavement leave, and sick leave. For each section, your employee handbook should clearly illustrate the conditions for each situation, the number of days allowed, as well as the way that your pay is calculated while you are out of work.

Resignation & termination procedures

The final most important section that an employee handbook should include is that which details the terms and procedures for an employee’s resignation or termination.

Regarding the former, your employee handbook should provide a timeline for the resignation process, and include how much prior notice an employee must give, how they give it, and how final compensation is arranged. 

In terms of the latter, your employee handbook must clearly describe the conditions under which an employee could be terminated and the ways that their compensation will be arranged. 

Here is an example of a complete employee handbook table of contents:

Now, it’s your turn! Here is a template for an employee handbook table of contents page. You can use this employee handbook template as a guide for what you could include in yours!

A well-designed employee handbook draws the attention of the reader and ensures that the correct information is stated in the best way. A poorly designed employee handbook is confusing to navigate and makes the reading experience more challenging and confusing.

Here are some examples of excellently designed sections of employee handbooks that you can draw inspiration from!

McDonald's Employee Handbook

The McDonald’s employee handbook is a great example of well-defined terms and conditions.

Valve Employee Handbook

The Valve Employee Handbook is an excellent example of a well-structured employee handbook. In particular, the way that the table of contents is structured is robust and makes clear the contents of the handbook from the get-go. 

Amazon Employee Handbook

The Amazon Employee Handbook is a perfect example of an employee handbook designed in a website format! This is a good way to have an employee handbook that is easily accessible to all people from any place and allows it to be easily updated as the company evolves. 

Netflix Employee Handbook

The Netflix Employee Handbook demonstrates a unique way to list qualities the company looks for in prospective candidates. The above example is of particular importance to candidates seeking to apply to Netflix as they will see exactly the type of person that the company is looking for through its employee handbook!

Citi Employee Handbook 

The Citi Employee Handbook is a great example of an employee handbook that utilizes images to increase its overall attractiveness. The images draw readers in and focus their attention on the content. This employee handbook also does a great job of distinguishing between the responsibilities of the employer and employees!

Key Takeaways

Employee handbooks are an invaluable addition to your company’s paperwork and are a direct reflection of your company and values. Including an employee handbook as part of your vacancy listings can also help to filter out unqualified candidates and ensure that only those who fit the criteria you include make it through to the application process! Here are some key takeaways to keep in mind when creating your company’s employee handbook:

• Make sure you include all the necessary content. Refer to this article’s section on employee handbook contents to get a good idea of what to include in yours!
• Make sure that the contents of your employee handbook are reviewed by a legal team to ensure there are no confusing statements that can leave you open for legal problems in the future.
• Design your employee handbook with your company in mind. Although taking inspiration from existing works can give you a good idea of standard employee handbook standards, remember to adjust the contents of your own based on the scope of what your company is looking for and offers!

--- Originally written by Alexander Coye ---