Creating an Effective Employee Manual

When businesses hire their first employees, they often start without having thought through fully all of the implications of what they are doing. This new person is going to be representing you and your company to your customers and clients, will be in your premises and will gain access to all of your knowledge and resources. Many people find that what starts out with great promise ends up in disaster when they haven't considered all of the implications.

As soon as you hire your first employee you seriously need to consider having an employee manual. The contents only need to be basic to start off with, but the benefits of having one will add value to your business.

So let's have a look at some of the reasons you need a manual.

To start with there are the legal reasons. If you have an employee you have instantly inherited a raft of legal obligations that you must fulfil. With most of these legal obligations if something goes wrong the first thing the courts will ask you is "what was your written policy on this issue". (I should know - after a number of years working with our Industrial Commission I saw many of the cases that went before the courts!).

The sort of legal areas you need to have coverage include workplace health and safety, anti-discrimination, workplace harassment, sexual harassment, bullying, racial vilification, privacy as well as the financial side of things such as pays and personnel records.

Then there are the time management reasons - if you have to tell more than one person the same information you will save time by having the information written down and then just sharing the information.

Next there are the making life simpler reasons - if an employee has a question about an issue (such as how many days before they go on leave do they notify you), it is easier for them to quickly look at the manual rather than try and catch you to ask you the question. It makes life simpler and easier for all of you.

Finally there is the no surprises reason. By that I mean both you and the employee are totally clear on what will happen and when on an issue, and what process will be followed. This is particularly important for issues such as probation, performance and grievance processes.

Your employee manual needs to cover off all of the common questions employees want to know about.

It needs to say "this is how we do things around here" and set a firm line in the sand that shows boundaries.

The sort of information that traditionally goes in employee manuals or employee handbooks include your:

• Position descriptions and job descriptions - what each role does.


• Recruitment and selection process - how you hire and reference check someone.


• New employee orientation and induction process - what process you will use to make sure new employees know what they are doing and the rules around their employment.


• Probation- Rules around any probationary period and how you will assess whether someone is permanently appointed.


• Hours of work and rosters - any rules you have about punctuality, changing rosters, public holidays, overtime, timesheets, friends and family visiting the workplace.


• Pay and personnel records - including pay days, payslip information.


• Staff Benefits - Any discounts to goods and services or other benefits you offer.


• Leave - annual, sick, maternity, paternity, adoption, long service, compassionate, study, jury service, ceremonial leave, leave without pay etc.


• Moonlighting - rules around working 2 jobs


• Termination of employment - what rules are there around resignation or being sacked, abandonment of employment, redundancy?


• Privacy, confidentiality and intellectual property.


• Appearance and standards of dress.


• Travel and expenses - if you need them to use their own transport for things or travel for their job what will you reimburse and how.


• Employee Performance Reviews - how you will conduct them.


• Learning and development - what training do you offer.


• Poor performance - what if they are not performing, what will you do?


• Behaviour - this is where you cover off anti-discrimination, workplace bullying and harassment, racial vilification, workplace health and safety.


• Code of conduct - what minimum standards of conduct do you require.


• Discipline and termination - what will you do if someone "crosses the line"? What is your termination process?


• Alcohol and drugs policy.


• Grievance procedures - how an employee with a problem about a manager or other team member can go about getting it resolved.


• Administration things - such as certificates of service, phone procedures, office appearance, email and blogging policies, computer policies, mobile phones and personal calls, cars, equipment, handing media enquiries, dealing with customer complaints or aggressive customers.

Your manual needs to be written in simple language. Assume a low level of literacy and keep jargon to a minimum.

Don't let your legal team rewrite your manual with lots of legal hereto and wherefore type language. Certainly it pays to run it past your legal team or lawyers, but don't let them run riot with red tape.

Keeping the language simple can be tricky if your manual needs to comply with external quality management requirements or formal internal procedures approaches ... but really fight with your bureaucracy to keep your employee manual language conversational.

Remember, you are trying to make it easy to read and be understood by all of your team - from the office junior to the janitor, from the CEO to the clerk.

Yes, you will need to have some way of controlling the versions of the manual as things will change.

The simplest way is to keep your document as an electronic version on some form of intranet that way everyone always has the current version of the employee manual.

If you decide to keep it paper based in a folder, keep version control as a simple note in the header or footer and reissue the whole section rather than create a huge song and dance with sheets that say take this out and put this bit back. You want things to be easy not hard to do!

You do need to keep one central file of every document and every change and the dates of these changes. I have seen too many cases before the courts where a policy was changed but because the company couldn't produce evidence of the date of the change they lost the case.

Having a great manual is only part of the issue - you need your team to know and understand where it is stored, how they can find it, what is in it and how they will learn of any changes.

This can be as simple as:

• being part of all new employees orientation process,


• including a briefing as part of all promotion to management roles,


• having a team meeting about the full manual at least once a year and specific bits such as workplace health and safety and harassment at least twice a year


• having a form of communication to your team such as notice boards, daily communication books, newsletters where you let them know of updates/changes


• getting different team members to talk about a chapter with you in your regular catch-ups with them

You also need to keep a note of what you do to keep people informed and updated - this again becomes an issue if you end up before the courts at any stage.

One way is to get people to sign an acknowledgement that they have seen/been trained in the manual for their personnel file.

New employee manual's can be very tedious to read. Here is an interesting take on employee manuals from Employee Manuals

Welcome aboard! You are one of our most valued new employees. Enclosed please find some helpful guidelines to company policy.

Overtime: The Company has an optional overtime policy - you have the option of working 40 hours of overtime or 80 hours of overtime.

Promotion: The Company rewards hard work and devotion. We like to think that if you work hard and devote enough time and energy to the company, you will be rewarded by being allowed to train the CEO's son when he is promoted to Vice-President over you.

Stock options: You may buy shares in the company when it goes public. So named because you'll be working in the stock room at Wal-Mart when the company goes belly-up due to your incompetence.

Termination: All employees will be given two weeks notice upon being fired. We like to feel that this gives an employee a grace period to steal all of the office supplies that s/he may have forgotten to take during his/her period of employment.

Complaints: May be made anonymously in the box marked "Complaints" in the employee break room. All complaints will be reviewed, processed, and fed to an angry Rottweiler named Frankie.