You might think that a company handbook is a relic of the past. Could be. But there’s still a place for it in your business. You’re not legally required to have a company handbook. But there are good reasons to have one.

First, a handbook can help you communicate your company culture and values to employees. Second, it can help you establish policies and procedures that promote fairness and consistency in the way you manage employees.

I’ll show you how to create a handbook for your business and provide you with some inspiration.

1. Start with a welcome letter

No matter how you decide to organize your company handbook, it’s a good idea to start with a welcome letter that introduces new employees to your company culture, values and goals. This is an opportunity to set the tone for the rest of the handbook and make a great first impression on your new hires.

„Welcome letters are a great way to introduce new employees to the company and to set the tone for what they can expect when they start working with you,” said David Lefkow, CEO of family-first recruiting platform Lyghtning. „It’s an opportunity to highlight the company’s culture and values, as well as to introduce the team and to let the new hire know how excited you are to have them join.”

In addition to the welcome letter, you can also include letters from other team members, such as the new hire’s direct manager or team leader, to help them get to know the people they will be working with.

2. Explain your company’s mission and vision

Your employees should know what your company stands for. You can use your company handbook to explain your company’s mission and vision, and how your company’s values inform your work.

You can also use this section to explain how your company got started, and how it has grown. This can help employees feel connected to the company and give them a sense of ownership in the company’s success.

3. Define company culture

Your company handbook is the perfect place to define your company culture. This can include listing your values, mission statement, and anything else that makes your company unique.

You can also include information about company traditions and events, like team-building activities, holiday parties, and more.

Your culture is one of the biggest things that will set you apart from competitors, so don’t be afraid to show it off.

4. Explain company policies

You can’t expect your employees to follow company policies if they don’t know what they are.

Clearly explain all of your company policies in your employee handbook. This includes policies on:

• Compensation

• Employee benefits

• Time off

• Attendance

• Code of conduct

• Employee discipline

• Termination

• Confidentiality

• Outside employment

• Drug and alcohol use

• Dress code

• Workplace safety

• Internet use

• Social media use

• Sexual harassment

• Discrimination

• Bullying and violence

• Grievance procedures

• Whistleblower protection

Make sure you include any other policies that are unique to your company.

5. Set expectations for all employees

Every employee should be held to the same standard, and your company handbook is the perfect place to outline what those standards are. This includes everything from the dress code to how employees are expected to interact with one another.

The more specific you can be, the better. For example, if your dress code is business casual, include examples of what that means. You can also include a section on communication and conflict resolution and outline how employees should handle disagreements with one another and with management.

6. Explain your company’s history

This is a great opportunity to tell the story of how your company came to be. You can give a brief overview of the founder’s journey to make the company a reality and how the company has grown since its inception.

If you have a unique origin story or if your company has been around for a long time, employees may be curious to learn more about the history of the company. This is a great way to show your employees that they are part of something bigger than just their job.

7. Add a section on workplace safety

If you haven’t already, you should create a workplace safety program to ensure your business is compliant with OSHA and other workplace safety laws.

In your company handbook, you should include an overview of your workplace safety program, as well as information on how to report hazards, accidents and other safety concerns.

You should also include information on how to evacuate the building in case of an emergency, as well as information on where to find the nearest emergency exits and fire extinguishers.

8. Explain employee benefits

Employee benefits are an important part of any employee’s compensation package. In fact, 80% of employees said they would prefer new or additional benefits to a pay increase, according to a survey by Zenefits. In your company handbook, you should explain what benefits employees are eligible for and how they can access them.

This could include things like health insurance, retirement plans, paid time off, and more. Be sure to go into detail about each benefit, including eligibility, when employees can sign up, how much it will cost them, and any other important information.

In addition to explaining what benefits are available, you should also include information about how employees can request time off, how they can access their retirement accounts, and more.

9. Add a section on employee conduct

Every company needs to set expectations for employee conduct. This section should include things like:

• Equal employment opportunity and anti-discrimination policies

• Anti-harassment policies

• An explanation of what constitutes harassment and discrimination

• A clear explanation of how to report harassment and discrimination

• An explanation of the disciplinary actions that will be taken if an employee is found to have harassed or discriminated against another employee

• A dress code policy

• A policy on personal hygiene and grooming

• A policy on using the internet, email (e.g., verify emails are genuine before replying), and social media

• A policy on the use of drugs and alcohol in the workplace

• A policy on gambling in the workplace

• A policy on fraternization and romantic relationships in the workplace

• A policy on solicitation and distribution of literature in the workplace

• A policy on conflicts of interest

This is just a starting point. You should also include any other conduct policies that are relevant to your business.

10. Create a section for frequently asked questions

Your company handbook is the perfect place to answer frequently asked questions (FAQs) about working at your company.

This could include questions about:

• Time off policies

• Health insurance

• Payroll and compensation

• Performance reviews

• Company culture

• And more

Remember, your company handbook is a living document. As your company grows and changes, make sure to update your FAQs to reflect the most current information.

11. Make it easy to read

A wall of text is intimidating and can make it hard for employees to find the information they’re looking for. Make your employee handbook easy to read by breaking up the text with headings, bullet points, and images.

You can also use color to help employees navigate the handbook. For example, you could use a different color for each section or use colored boxes to highlight important information.

12. Add a signature page

The last page of your company handbook should be a signature page. This is where you’ll have employees sign and date that they’ve received, read, and understood the information in the handbook.

This signature page should be kept in their employee file. If you make any changes to the handbook, you’ll want to have them sign and date that they’ve received the updated version.

This signature page can be as simple as a few lines that allow for their signature and date.

13. Make it accessible

Finally, you’ll want to ensure that your company handbook is accessible to all team members. That means it should be easy to find, easy to read, and easy to understand.

One way to make your company handbook more accessible is to create a digital version. This will allow team members to access the handbook from anywhere, at any time.

You can also make your handbook more accessible by breaking it up into smaller, more manageable sections. This will make it easier for team members to find the information they need.

Conclusion

Company handbooks are a great way to set the tone for your company and give new employees a sense of what they can expect. They can also help prevent legal trouble by clearly outlining what is and isn’t acceptable behavior in the workplace.

I hope these examples have given you some inspiration for creating or updating your own employee handbook.