3 Reasons Your Small Business Needs an Employee Handbook

Complying with workplace laws and handling employee issues is often one of the biggest challenges for small business leaders. A lack of HR expertise leaves many small employers in danger of employment law violations that can result in significant penalties.

One thing small business leaders can do to help prevent these HR compliance issues, while at the same time help other areas of the company, is to create an employee handbook.  Here are 3 reasons why you should.

1. Helps Your Business Comply With federal, state & local laws

No matter what state you do business in, or how many employees you have, you will be subject to state and federal employment laws. Having a handbook not only communicates the various entitlements and obligations to employees (some of which you’re legally required to notify them of), but it also demonstrates that your business adheres to employment rules and regulations.

2. Helps defend against employment claims

Certain provisions included in a well-written Handbook will go a long way in defending your business against potential employment actions.  Example: If an employee sues you, claiming they were wrongfully terminated, you can point to the employee’s signed acknowledgement page of the handbook as evidence that you have clearly spelled work conduct rules with disciplinary consequences and that the employee was aware of such expectations and consequences. 

3. Provides Your Employees a Go-To Resource

Want to save time from having to answer a barrage of questions?  One of the great things about having an employee handbook is that if your employees have an employment or work policy-related question, they know that they can turn to their handbook to seek an immediate answer – or you can simply remind them of that.

Whether your small business has two employees or 20, having an employee handbook makes it easy for you to communicate rules and responsibilities to employees, so there’s no question about what’s expected from them — or from you, as the small business owner.  Need a handbook for your business – let’s talk.  Visit thehrhotline.com or email us at info@thehrhotline.com