6 Reasons Your Company Needs Employee Manuals

Writing an employee manual might seem like an unnecessary task on your never-ending to-do list for your business. However, having a well-written employee manual benefits you in multiple ways.

1. Sets Clear, Measurable Expectations

A business runs more smoothly when everyone has specific standards and responsibilities. Your employee manual should outline the duties for each position, allowing every new hire to know exactly what they are signing up for. This can also protect you if an employee consistently fails to meet your expectations.

2. Outlines Policies 

Policies are crucial for business owners. When you follow specific policies for your personnel decisions, you reduce the risk of being accused of discrimination or unfair treatment. If employees know what to do if they have to call in and what will happen if they act against your policies, they’re less likely to be angry or surprised when you have to enforce your rules.

3. Compliance With State and Federal Regulations

As an employer, you’re held to a stringent list of federal and state regulations. These regulations protect employees’ rights in a wide range of situations. Explaining your employees’ rights in each situation shows your dedication to meeting regulations and standards.

4. Protection Against Employee Complaints and Lawsuits

Perhaps one of the most important benefits of an employee handbook is protection against employee complaints and lawsuits. When you make personnel decisions on a whim or based on your feelings, you put yourself at risk of getting sued for discrimination. Even if you are able to win in these lawsuits, the negative press can be devastating to your company. Having a clear set of rules for every employee is important for your legal protection.

5. Tells Employees Where They Can Get Help 

Every company needs resources for employees who feel they have been treated unfairly. When you include this information in an employee handbook, you give employees a way to stand up for themselves that doesn’t immediately take them to an employment lawyer. As an added benefit, having a complaint process in place hold managers accountable and prevents them from treating employees unfairly.

6. Protection Against Unemployment Claims

Unemployment claims can be extremely expensive, and most state’s laws heavily favor an employee’s right to unemployment benefits. If you want to successfully deny an unemployment claim, you have to demonstrate that a terminated employee was fired because of consistent poor performance and failure to follow company policies. Your handbook can be valuable evidence in an unemployment case.

 When writing an employee manual, you have to include carefully worded and accurate information. Working with a business lawyer ensures that you meet local regulations and protect your company. To discuss your business needs, contact Wilson Law Group at 804-864-5268.

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Wilson Law Group

Jim Wilson is the founder and principal attorney of the Wilson Law Group. For the past 25 years he has been combining legal dexterity with an entrepreneurial mindset to help aspiring and established business owners start, finance, buy, sell, and run their companies.

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