The problem is not every company utilizes this practice, as many don’t see the need for or value of employee procedures. To address this, we’ve compiled a list of reasons why establishing employee procedures should be at the top of your priority list.
What Are Employee Procedures?
Reason One: Employee Procedures Can Protect Your Business from Litigation
Reason Two: Employee Procedures Means Better Training
Reason Three: Clear Processes & Procedures Creates Better Team Morale
Reason Four: Introduces The Culture of Your Business
Reason Five: Promotes Workplace Transparency
Reason Six: Your Business Will Be In Compliance With State/Federal Law
Reason Seven: You Can Show Off Your Employee Benefits
What Are Some Examples of Company Policies?
Am I Legally Required To Provide An Employee Handbook?
How Often Should I Update My Employee Handbook?
What Are Employee Procedures?
Employee procedures often take the form of an employee handbook. This handbook or packet is typically given to every team member that joins your organization and should be a key part of your hiring process. This handbook allows team members to be briefed on company policies, guidelines, and codes of conduct, in addition to providing the perfect introduction to your business.
Reason One: Employee Procedures Can Protect Your Business from Litigation
We recommend that you have a sign-off for every team member stating that they have read and understood the employee handbook. Why? Your employee handbook will lay out your company standards and expectations. Your handbook should also state the reasons for which employees can be terminated, setting clear expectations of their behaviors and job performance. If need be, you can now terminate your employee and know that the termination won’t lead to a court case. By having them acknowledge that they understand your company policies, your company is fully protected from any kind of dispute.
Another great example of procedures that protect your business is providing a stolen property policy in your handbook. This policy can state that if damage occurs to your employee’s property or if said property is stolen, your company can not be held responsible.
Reason Two: Employee Procedures Means Better Training
By setting a clear understanding of day-to-day workplace processes, your new employee can quickly get a grasp of what is expected of them. By providing them with a layout for any process necessary to their role, you eliminate the risk of employees creating their own process. You can now have peace in knowing that their work is being done the way it was intended and that nothing falls through the cracks.
Reason Three: Clear Processes & Procedures Creates Better Team Morale
Everyone is happier when they know what’s expected of them. What’s even better than knowing what to do is knowing how to do it. When everyone understands their roles and responsibilities within their workplace, they can work efficiently and effectively.
Another perk to this is that you can hold everyone accountable. We all have had to work with someone at one time or another that seemed to have no idea what to do. This can create a toxic work environment, as the other employees will grow frustrated at the lack of accountability. By having employee procedures in place that set clear expectations and standards of work ethics, you can hold everyone accountable.
Reason Four: Introduces The Culture of Your Business
Culture is one of the most important aspects of your business. Culture creates a sense of belonging and pride in what you do, increasing productivity and team morale. By explaining your mission and values, as well as the culture you are dedicated to creating in your business, your new hire can quickly and easily become accustomed to your company’s purpose, beliefs, and goals.
Reason Five: Promotes Workplace Transparency
By letting your new hires understand your culture, your mission, and overall goals, you can create a space of trust and open communication. This helps to foster a sense of transparency and let employees know that feedback and questions are not only allowed, but welcomed.
Open communication is key in a business setting, and by promoting your dedication to transparency in your employee handbook, your staff will feel comfortable talking to you or other management members with their questions and concerns.
Reason Six: Your Business Will Be In Compliance With State/Federal Law
Another purpose for your handbook is to inform and educate employees on any and all state and federal laws regarding safety, termination, and health regulations. By providing these to your employees, you not only fulfill your legal obligation to do so, but also grant yourself an extra layer of protection if an employee decides to participate in illegal activity while on the clock.
Reason Seven: You Can Show Off Your Employee Benefits
By defining employee benefits, each team member will be aware of the following:
- Your company’s sick days policies.
- The company’s paid time off policies.
- The number of allowed vacations.
- Any company acknowledged holidays.
- Whether or not a 401k is offered.
- How often employee evaluations happen.
- Healthcare benefits.
- Employee discounts on any products or services.
- Any other incentives your company may provide.
Your employee benefits are part of what keeps your staff engaged, so it’s important for them to know about them!
What Are Some Examples of Company Policies?
There can be quite a bit of policies that goes into your employee handbook, but here a few you will want to include:
- Code of Conduct
- Workplace Safety
- Privacy Policies
- Drug and Alcohol Policies
- Equal Opportunity Policy
- Employee Benefits Policy
- Termination Policies
- OSHA Requirements
Am I Legally Required To Provide An Employee Handbook?
No, but the benefits listed in this blog prove that the pros of having clear employee procedures outweigh the time and effort it will take to build an employee handbook.
How Often Should I Update My Employee Handbook?
It’s always a good idea to review your employee procedures yearly at a minimum. This way you can update your handbook to accommodate company-wide shifts or changes. However, that doesn’t mean the rest of the year it should go untouched. As new issues arise that you didn’t account for, or new industry standards are released, you should update your handbook accordingly to protect yourself and your employees from liabilities.
How Davis Business Law Can Help Your Business
