The 3 C’s of Employee Handbooks for Small Business Owners
When it comes to employee handbooks, don’t make the mistake of thinking you are too small to need an employee handbook. If you have at least one employee there are laws for which you want to comply. The three C’s of employee handbooks that make such a difference for small businesses are: Communication, Consistency and Compliance.
Recently, I was asked by a Dentist that has 4 employees, if it was really necessary to have an employee handbook. She stated, that were all friends and got along great. I asked the dentist three simple questions:
1. How do you feel about employees dating one another?
2. Are you open to your office manager hiring her relatives?
3. Do you allow employees to work through their lunch and leave a little early?
There is nothing magical about these questions, however the answers can prompt a discussion around other issues that warrant communicating to employees.
Employee Handbook
Here are a few more questions I have asked:
1. Do you want to prevent chaos in the workplace?
2. Is the new guy you just hired bogging you down with constant questions about vacation time or benefits?
3. Would you like to reduce your chances of being hit with a lawsuit because a disgruntled employee “didn’t know” about your company policies?
The list of questions could go on, but the point I am trying to make here is an employee handbook cuts down on the questions by communicating clearly the policies of your company, creates consistency among employees, and helps you demonstrate compliance with employment laws. So why is compliance, communication and consistency so important?
Compliance
As a small business owner you know the importance of complying with the law. Whether it’s paying B&O tax, acquiring the proper licensing or adhering to consumer protection laws, it is sort of a “no brain er” and most business owners want to do the right thing.
Employment laws are fairly straightforward and pleading “ignorance” is often time not a sufficient defense if a lawsuit is filed, or you are audited. Take the time to determine the employment laws that apply to your employees and make sure you have written policies in place.
Communication
You will never be sued for over communicating a policy that complies with the law and is consistently applied. So, communicate, communicate, communicate. Caveat….you can be sued by anybody for anything, but prevailing is an entirely different matter. Reduce the likelihood of these legal hassles to begin with by communicating the written policies you have in place. Communicate company rules in written form, verbally and at regular intervals during the tenure of an employee.
Take advantage of the opportunity to connect with new employees by telling them about your company’s philosophy and the policies that govern their employment relationship. Conducting a new employee orientation provides the best avenue for this type of communicating, however be sure to provide a written copy of the employee handbook and get the employee to sign an acknowledgment of receipt form.
Remind employees of various policies during the year to reinforce existing policies and procedures. Prior to national holidays, remind employees of the compensation, leave and scheduling procedures.
Provide employees the opportunity to provide feedback on various policies and procedures. This can help you as the business owner better understand the needs and desires of your employees and also create a sense of commitment and loyalty among employees which reduces turnover. Remember one of most common reasons employees resign is because they are dissatisfied with company management. Company management can enhance their relationships with employees in a number of ways being consistent is one way, which leads us to the third “C” – Consistency.
Consistency
Just as you want your services and/or products you sell to be of a consistent quality, so should the rules that govern your employees be consistent.
You would not treat your customers different depending on their gender, religious background, or disability. Likewise, you would not treat your employees any different based on their background. You already know there are laws in place which prohibit discrimination, so there is no need to spend much time on that topic. If you need more information on discrimination laws visit the EEOC website.
However, one area of consistency that doesn’t get much attention is the impact it has on employees. Employees that know policies and procedures are applied consistently remain employed longer than those that work in environments that lack consistency. Even if the policies and procedures are invasive, illegal and otherwise not good, employees are more likely to remain employed when they know the policies are being applied consistently.
Don’t invite problems and lawsuits JUST apply policies and procedures consistently and most employee relations issues are addressed. Remember you need to first demonstrate compliance to employment laws by writing you’re your policies, and then communicate the policies.
A few resources to check out:
1. You don’t have to spend money to learn more about employee handbooks. Conduct a Google search “employee handbooks” and enjoy the multitude of results.
2. If you are ready to get started writing policies and you are a Do-it-yourselfer visit About.com, where you will find great instructions on how to develop your own policies and free templates you can download.
3. If you don’t have the time, a few resources to pay for the service hire a virtual HR professional through Employee Essential. We can create a customized handbook tailored to the needs of your company. Get the policies and procedures you need and not the ones you don’t. Visit the website for more information.
EE Staff
This blog post is not intended for use as a source of legal advice. Seek legal counsel for these and any other personnel matters.
