Common Employee Handbook Mistakes & How to Avoid Them

Creating a thorough employee handbook provides a valuable resource for your employees, both during the onboarding process and throughout their employment. A well-written manual also sets your business on the right track to staying in compliance with federal and state labor laws and avoid fines and potential lawsuits.

Conversely, a poorly written employee handbook can create confusion around existing company policies and expectations. And if critical processes and rules are not laid out properly, unnecessary liabilities could arise.

Building an effective employee handbook should be considered a priority. Errors in your handbook can be problematic in the long run. But if you do it right the first time, you won’t have to worry about making corrections as often.

There are several common mistakes employers make when setting up an employee handbook. Luckily they can all be easily avoided.

Don’t: Use a Cookie-Cutter Approach

Your business’s employee handbook should be a direct reflection of your operations and culture. Every business is unique and has its own set of policies and expectations. While templates are an efficient place to start in the handbook creation process, it’s a mistake to adopt it outright instead of adapting the manual to fit your business and employees.

If you use a template, review it thoroughly and tailor it to your organization’s specific needs.

Do: Focus On Your Values 

Your handbook should not only include your policies, but also reflect your company values. Successfully implementing a strong sense of culture for your team relies heavily on their understanding of what your business is all about.

Include a mission statement, a history of your organization, and your workplace philosophy. Educate your employees on the vision that drives workplace decisions and inspire them to actively participate in the culture you’ve worked hard to create.

Using your handbook as a way to motivate employees to positively participate in building your company culture can result in a more fulfilling workplace environment for everyone.

Do: Include All Policies 

Employment laws change often, and when this happens, you need to draft new policies based on the new rules to show that you are up to date with your compliance requirements. New policies are also created as new workplace situations arise that need to be addressed.

It can be easy to draft these new policies and forget to include them in your handbook, especially if it’s already completed. However, it’s critical to include all policies. A good rule of thumb is that if you plan on enforcing the policy every day, put it in the handbook.

That way your employees don’t have to search through other methods of policy distribution to find the information they need on new rules, and all your proof of compliance is in one place.

Don’t: Forget a Disclaimer

Your team members should be aware that the handbook in no way creates an employment contract. Just because an employee follows all the rules laid out in the manual, at-will employment is still in effect and you have the right to terminate them.

The best way to get this point across is to include a disclaimer. The disclaimer should also stipulate that while the handbook covers a wide range of workplace situations, it is not an exhaustive list. Include this caveat to guarantee that you have the flexibility to address unique occurrences.

Make sure to include the disclaimer in your handbook and have your employee sign and acknowledge they read it.

Don’t: Skimp on the Anti-Harassment Policy 

Your anti-harassment policy is one of the most important aspects of your employee handbook. Your team members need to understand what exactly harassment means and how to report it if they experience workplace harassment. Failing to include a well-written policy could lead to a less effective harassment prevention strategy.

Lay out the required procedure in your handbook for reporting a harassment incident, and include a designated person your employees should go to in order to do so. It’s also a good idea to include an alternate person to report the incident to if the designated employee is the alleged harasser, or the employee feels uncomfortable with reporting to the primary individual.

You can also include a form employees can complete and submit to the designated person to report harassment. If you do, be sure to make it clear that you will thoroughly investigate all harassment allegations, even if they don’t submit the complaint in writing.

Many states have additional laws requiring anti-harassment training. Inform yourself on any requirements in your area to ensure your policy is compliant with local laws.

Don’t: Include Overly Restrictive Disciplinary Practices 

Your employee handbook should lay out what types of conduct can lead to discipline. It should also detail the penalties for different behaviors. However, it’s a mistake to create a restrictive process that applies to all cases.

If you set your disciplinary policy up this way, you lose the flexibility to handle unique situations.

Your policy should include a disclaimer that you have the right to skip a disciplinary step as necessary. It is possible that an employee’s unacceptable behavior may leave you no choice but to terminate them for cause. Let your team know you will assess the severity of each issue on a case-by-case basis.

Do: Make it Easy to Read

The point of an employee handbook is to clearly distribute company policies to your team. If the language is hard to understand, your team members could end up more confused than ever.

Keep your policies concise and get rid of any potential ambiguity. Avoid attempting to detail every possible scenario or laying out every management policy in extreme detail. An effective employee handbook provides necessary information without turning into an extensive “terms and conditions” manual that no one reads.

Don’t: Skip the Review 

You might not notice inconsistencies or ambiguities in your policies if you’re writing your own handbook. Errors like this can lead to employees feeling that you don’t enforce policies the same way for all team members.

Consider utilizing an outside expert to review your language and provide guidance on how your policies should be written. An expert can also give you insight on further policies to include based on industry trends.

Need help crafting an employee handbook? Homebase HR Pro gives you access to certified HR experts who can review your existing policies, help you create new ones, and even provide customizable templates to make crafting an effective handbook as easy as possible. Sign up today!

Employee Handbook FAQs

Should The Employee Handbook Be Customized For Each Organization?

For each organization, customization of the employee handbook is generally recommended. This is because individual organizations possess their own unique policies, values, and workplace culture. A customized handbook better addresses these unique aspects and the specific needs of an organization’s employees. Utilizing a generic handbook might not effectively cater to these needs and could result in misunderstandings or potential legal challenges.

Is It Important To Use Current Language In The Handbook?

Ensuring the use of contemporary and appropriate language in an employee handbook is significant. As language and societal norms evolve, handbooks should reflect these changes to avoid potential misunderstandings or offensive terminology. This involves avoiding outdated language and ensuring that the handbook’s language is inclusive and non-discriminatory.

How Can Ambiguous Or Vague Language In The Handbook Be Avoided?

To prevent ambiguity or vagueness in an employee handbook, clarity and conciseness in language are key. It’s advisable to steer clear of complex technical terms or legalistic jargon that might not be easily understood by all employees. Instead, using straightforward, detailed language, possibly supplemented with examples, can enhance clarity and comprehension.

What Key Policies And Procedures Should Be Included In The Handbook?

Employee handbooks should encompass a comprehensive range of policies relevant to an organization. These typically include areas such as employment practices, compensation, benefits, performance standards, and conduct guidelines. Careful review and clear presentation of these policies are important to ensure they are understood and followed.

Are There Any Policies That Should Be Avoided In The Handbook?

Including policies that conflict with state or federal laws should be avoided in employee handbooks. Such policies can lead to legal liabilities and can create confusion among employees. Ensuring legal compliance in handbook policies is an important aspect of its development.

How Important Is Addressing Workplace Diversity And Inclusion In The Handbook?

Incorporating policies that foster an inclusive and respectful work environment is considered very important. Without such policies, there is a risk of creating a workplace where employees might feel marginalized or discriminated against. Emphasizing diversity and inclusion can help in building a supportive and welcoming workplace for all employees.

Should The Handbook Have Restrictive Policies?

While establishing guidelines and rules is necessary, excessively restrictive policies could potentially affect employee morale and productivity negatively. A more balanced approach, which considers employee feedback and allows for some flexibility, may be more effective.

Is It Necessary To Outline Consequences For Policy Violations?

Outlining clear consequences for violating policies in the handbook is essential. This includes specifying a disciplinary process, which might involve steps like warnings, and detailing the potential for termination in case of serious violations. Clear guidelines help in maintaining order and fairness in the workplace.

Should Employees Be Allowed To Provide Feedback On The Handbook?

Encouraging employee feedback on the handbook is generally considered a good practice. Since the handbook is an evolving document, input from employees can be valuable in ensuring its effectiveness and relevance. Feedback can help in updating and improving the handbook over time.

How Often Should The Employee Handbook Be Updated?

Frequent updates to the employee handbook are necessary. These updates should reflect any changes in laws, technological advancements, and shifts in business processes. Regular revisions ensure the handbook remains relevant and compliant with current regulations.

Is It A Mistake To Copy And Paste Old Handbook Content?

Copying and pasting content from older versions of the handbook without reviewing and updating it can lead to issues. It is important to regularly review and refresh the content to ensure its accuracy, relevance, and clarity. This helps in maintaining a handbook that is useful and up-to-date.

How Detailed Should The Employee Handbook Be?

Finding a balance in the level of detail in an employee handbook is important. While it is necessary to include essential information, overly comprehensive handbooks might overwhelm employees. The aim should be to provide necessary information in a manner that is easily digestible and understandable.

Is Associated Training Necessary When Distributing The Handbook?

Providing training or guidance in conjunction with the distribution of the handbook can enhance employee understanding and application of its contents. Training sessions or guidance materials can help employees grasp the handbook’s policies and procedures more effectively.

Can Business Owners Assume Employees Will Read The Handbook?

Assuming that all employees will thoroughly read and understand the handbook on their own is often a misstep. It is generally more effective to reinforce the handbook’s content through discussions, training sessions, or other methods of engagement to ensure comprehension and adherence.

Is Legal Review Of The Handbook Important?

Seeking a legal review of the employee handbook is advisable. Consulting with HR professionals or legal experts can help ensure that the handbook complies with current laws and adheres to best practices. This review can help in avoiding legal pitfalls and ensuring the handbook is robust and effective.