Everything You Need to Know … About Employee Handbooks

Employee handbooks should be designed to do more than just communicate information and answer routine questions; your handbook should help you achieve your organizational goals and objectives. Thus, while a list of rules of conduct and a summary of benefits are important information, you should evaluate your handbook on its ability to help your organization meet its objectives.

One purpose of your employee handbook is to help you attract and retain employees. Your employee handbook should help your employees answer — hopefully in the affirmative — two important questions: “Why should I work here?” and “Why should I continue working here?”  If your employees are not receiving a positive message about your organization, your handbook is not doing its job.

Your handbook should also help convey useful information about hours of work, paydays, leaves of absence, and benefits. More importantly, your handbook should help create an atmosphere of trust and respect and give your employees a sense of belonging.

At the same time, your employee handbook must help you comply with your legal obligations and ethical requirements. It must also help you protect management’s right to make changes and adapt the organization’s policies and programs as needed.

Since your organization and its employees are affected by all of your written and unwritten policies and procedures, you should ensure that your employee handbook incorporates as many of your organization’s written and unwritten policies and procedures as practical. You must further ensure that your handbook communicates top management’s commitment to your policies. As a result, your handbook will promote consistency and assist you in preventing claims of disparate treatment.

You should regularly assess your employee handbook, not only from the standpoint of how well it communicates policies and procedures, but also from the standpoint of how well it helps you achieve your organization’s goals and objectives. Employee handbooks that fail to help your organization succeed in these areas should be rewritten.

Below is a recommended list of employee handbook topics:

SECTION ONE: GENERAL EMPLOYMENT POLICIES

This is where you define the basic policies that explain how, when and where your employees are expected to work. You may want to include the following information in this section:

Purpose of Handbook
Vision and Mission
At-Will Nature of Employment
This Handbook is not a Contract Statement
Reservation of Rights Statement
Statement of Non-Discrimination
Sexual and Other Unlawful Harassment Policy
Disability Accommodation Policy
Business Ethics and Conduct Expectations
Ownership of Work Materials Policy
Conflict of Interest Policy
Whistle Blower Policy
Access to Personnel Files Policy
Non-Disclosure (Confidentiality) Policy

All of these elements are important in their own way. Without a non-disclosure agreement, your employee could breach confidentiality and have no idea that they were not supposed to discuss a topic outside of work. Without a conflict of interest policy, you might have an employee seek a business relationship with another organization that puts your operation at risk, yet have no recourse as your policy was not spelled out. Therefore, it is important to include most, if not all, of the sections above in your employee handbook.

SECTION TWO: EMPLOYMENT STATUS

This is another category that is important in your employee handbook. You may want to include the following two sections:

Introductory Period: if you wish to have a “trial” period for new employees, define what that period will look like and how long it will last.

Employment Categories: what does it mean for someone to be defined as temporary, part-time, full-time, exempt, non-exempt, etc.?

SECTION THREE: RECRUITING AND HIRING

Your employee handbook should lay out the ins and outs of your employees’ legal obligations during their employment at your organization as well as your process for recruiting and onboarding. At a minimum, you need to cover your policy on eligibility to work in the U.S. The following categories are also recommended, but not required:

Job Posting and Employee Referrals Process
Employment Applications Process
Employment Reference Checks Policy
Policy on Employment of Relatives
Relocation Expense Policy
Process for Reemployment of Former Staff Members
Employment Offer Policy
Position Descriptions
Promotion Policy
Transfer Policy

SECTION FOUR: COMPENSATION AND SALARY ADMINISTRATION

Include the following items in this section:

Timesheet Policy
Overtime Policy
Pay Periods

These items are also recommended:

Compensation Philosophy
Pay Deductions and Setoffs Policy
Direct Deposit Process
Personnel Data Changes Process
Administrative Pay Corrections Policy
Compensatory Time Off Policy
Pay Advance Policy

SECTION FIVE: GENERAL WORKPLACE POLICIES

What time should I show up for work? What is the dress code? How many breaks can I take? Spell this out. In order to ensure the best work ethic and safe work environment, you may want to include the following sections in your employee handbook:

Working Hours
Attendance and Punctuality Expectations
Safety Protocols
Workplace Violence Prevention
Smoking in the Workplace
Drugs in the Workplace
Security Inspection Policy
Acceptance of Gifts, Gratuities, and Services Policy
Authorization to Sign Contracts & Agreements
Communication with the Press

These items can also be helpful:

Work Breaks Policy
Lactation Breaks Policy
Emergency Closings Policy
Flexible Work Arrangements
Personal Appearance/Dress Code
Open Door Policy
Housekeeping Policy
Visitors in the Workplace
Children in the Workplace
Staff Travel Recommendations
Corporate Credit Card Policy
Political Activity Policy
Solicitation Policy
Confidentiality Policy

SECTION SIX: EMPLOYEE BENEFIT PROGRAMS

You may want to include some or all of the following items in this section, depending on your specific benefits package:

Benefits Overview
Medical/Dental/Vision Benefits
Flexible Spending Accounts
Transit/Commuting Benefits
Life Insurance/Disability Benefits
EAP
Retirement Savings Plan
Statutory Benefits (Workers Compensation, Social Security, Unemployment)
Education Assistance
Benefits Continuation

SECTION SEVEN: LEAVE

By creating guidelines of when it is appropriate to paid time off (PTO), vacation, or sick days, your employees will be better able to manage their leave time. Include the following sections in your employee handbook:

Holidays
Vacation Policy
Sick Leave Policy
FMLA/State FMLA
Military Leave Policy
Jury Duty

The following items can also be helpful:

Personal Leave Policy
Bereavement Leave Policy
Parental Leave Policy
Medical Leave Policy
Pregnancy-Related Absences
Unpaid Leaves of Absence
Court Leave
Other State-defined Mandated Leaves
Severe Weather and Emergency Situations
Overtime

SECTION EIGHT: ORGANIZATIONAL PROPERTY AND TECHNOLOGY

Every organization is different as to whether they allow their employees to use their phone or computer at work, and whether they supply their employees with these tools.  Include the following policies in this section:

Document Retention Policy
Phone and Mail Systems Policy
Computer and Email Usage Policy
Social Media Policy
Smart Phone Issuance and Use While Driving

The following items can also be helpful in this section:

Personal Property
General Use of Equipment
Internet Usage Policy
Use of Cell Phones Policy
Business Expense Reimbursement
Company Vehicles

SECTION NINE: EMPLOYEE PERFORMANCE AND WORKPLACE CONDUCT

How do you expect your employees to behave while at work? What qualifies as misconduct? What kind of performance is considered grounds for termination? How will employee performance be evaluated? Include these policies:

Personal Relationships Within the Workplace
Employee Conduct and Work Rules
Progressive Discipline Process
Problem Resolution Process

You may also consider adding the following items in this section:

Outside Employment Policy
Performance Evaluation Process
Employee Relations
Complaint Procedure
Suggestion Program

SECTION TEN: SEPARATION FROM EMPLOYMENT
Include the following items in this section:
Employment Separation
Return of Property
Non-Compete and Conflict of Interest Policy

You may also consider including an item on references for current and former employees.

SECTION ELEVEN: EMPLOYEE ACKNOWLEDGMENT FORM

Employers often worry that their employee handbooks will be used against them in litigation. In particular, you could be concerned that employees will claim that your policies are contracts that must be followed exactly. However, the simple act of putting your policies in writing should not create a binding contract, if the policies are written as guidelines that explain "generally" or "typically" what your requirements are and how employees "normally" will be treated.

Label your “introductory period” policy carefully. Do not use the traditional phrase "probationary period" with its union security clause connotations. Instead, use you might want to use the term, “introductory period”, meaning that the new employee is being introduced to the organization and that both the employee and the company have the opportunity to evaluate fit.

Include a clear at-will statement in the policy. An example of an effective statement is: "Your employment with the Company is considered to be at-will, and the employment relationship may be terminated at any time by either party." Make sure other policies also include appropriate at-will disclaimers. It is not enough to include the at-will statement just in the introductory period policy. You also should have a separate at-will policy and discuss the issue in other policies, such as those addressing hiring, termination, discipline, performance evaluation, and complaint resolution.

No matter the size of your organization, a well-written, up-to-date, legally compliant employee handbook is a best practice that will benefit you and your employees.

Communication Matters

As a human resources consultant, I have conducted many employee surveys over the years to ascertain what employees like about their workplaces and what they think needs to be changed. In many cases, one of the key recommendations from employees to make the workplace better is “provide better communication.”

What do employees want to know about? They want to know before a change occurs that it is coming. They want to know why the change is happening. And most of all, they want to know how it will affect them. If you can get ahead of your communications efforts by providing answers to these questions, your employees will be less stressed, more productive, and your change efforts will be more successful.

According to A Manager’s Guide to Communicating with Employees, “from a communications perspective, employees feel appreciated and valued when:

• §  they are the first to hear important news
• §  they are regularly consulted
• §  they are listened to
• §  their suggestions are acted upon.”

Some of the best ways I have found to communicate with employees are as follows:

• 1.      Send mass emails for communicating information that is timely such as an office closing due to bad weather.
• 2.      Conduct regular staff meetings to discuss department news, delegate work, and share information from senior management.
• 3.      Conduct regular Town Hall meetings, hosted by senior leaders, to provide high-level information about upcoming events or give status updates. Anticipate and welcome questions from your audience.
• 4.      Encourage employees to let you know what’s not working and offer their suggestions for improvement. Create a culture where open communication – the good, the bad and the ugly – is sanctioned.
• 5.      Provide a suggestion box and reward good ideas. Let employees know that suggestions need to be positive, respectful of others, and doable. For example, “Fire my manager” is not an appropriate use of a suggestion box.
• 6.      Walk around the office and be available for spontaneous conversations.
• 7.      Meet regularly with employees, one on one, to discuss their performance.
• 8.      Conduct fun teambuilding exercises and meeting ice-breakers for employees to get to know one another.

Finally, to be a good communicator, make sure that you have been heard. Ask questions to learn if your message has gotten through to your audience. As George Bernard Shaw is quoted as saying: “The single biggest problem in communication is the illusion that it has taken place.”

I am curious … what are your best ideas for effective workplace communication?

Judy Lindenberger, MBA, is President of The Lindenberger Group, an award-winning human resources consulting firm located in New Jersey (www.lindenbergergroup.com). To contact Judy, call (609) 730-1049 or email info@lindenbergergroup.com

A Case for Conducting Reference Checks

With resume falsification an ongoing concern, many organizations have become more aggressive in conducting reference and background checks. Doing so is a best practice and is not required by law. If you plan to conduct reference and background checks, which I highly recommend you do, here are some pointers to follow.

As a starting point in your reference checking activities, you may want to verify the correct spelling of applicant’s name(s), check for aliases, verify the applicant’s SSN, verify current and previous addresses, and verify the applicant’s home telephone number. Next check information related to educational, business, and professional achievements. You can verify degrees earned, certificates received, and professional designations obtained. And, depending on the nature and requirements of the job, such as bonding or security clearance requirements, the degree of contact with the public, and other factors, check the applicant’s credit history and conduct a criminal conviction check.

Since some references may be reluctant to discuss an employee’s work performance or conduct, it has become common practice to have applicants sign a form, releasing their references from liability for responding to your inquiries.

In my experience, telephone or email inquiries are usually the quickest way to contact references. You could also send a letter on your company stationary requesting a reference. As a rule of thumb, I like to get three references for each qualified job candidate.

Seek only information that is relevant to the position being filled and which will help you to choose the best candidate. Never request or collect information about an applicant — or employee — that you can’t or won’t use. Reference questions about an applicant’s propensity for filing discrimination charges, OSHA and workers’ compensation claims, union grievances, or employment practices lawsuits, for instance, place you on a slippery slope, since you may not be allowed to use this information in making a hiring decision. For example: if you do not hire an applicant after receiving information about previous discrimination claims activity — even though your decision was based on other factors — the EEOC may charge both you and the organization ­that provided you with negative information with unlawful retaliation.

Plan your questions and ask each reference the same list of questions. Give the person time to respond, don’t put words in his or her mouth, and, if you aren’t sure what he or she is trying to say, ask follow up questions. Here are of some of my favorite questions to ask when doing a reference check:

§  How do you know this person? For how long?

§  How would you describe him/her professionally and personally?

§  On a scale of 1 – 10, with 10 being the highest, how would you rate this person on meeting his or her business goals?

§  We all have strengths and areas of weakness. What is his/her greatest strength and biggest challenge?

§  What would you advise me about how to manage him or her?

§  Would you hire this person again? Why or why not?

§  Tell me about this person’s level of integrity.

§  In your opinion, what is this person’s growth potential?

§  Is there anything else I should know?

Given how important each hiring decision is, I believe it makes good sense to spend the extra time to conduct a reference check. What about you? What have been your experiences in conducting reference checks and how has it benefited you?