One in five companies has experienced an employment-related lawsuit in the last five years. Judgments against companies in these actions averaged over $326,000 per incident. Your best defense against becoming another statistic is to have a complete, up-to-date employee manual.
The purpose of an employee manual is to educate your employees on the legal regulations that guide you as the employer and the policies that guide your employees in the workplace. Along with legal defense, employee manuals improve workplace culture by explaining rights and responsibilities, preventing disagreements, and ensuring everyone are treated equally.
Employee manuals should contain a combination of federal and state employment policies along with company-specific guidelines and expectations.
What is an Employee Manual?
- An employee manual is a business manual that includes HR policies and procedures that explain how your workplace functions for employees.
- These manuals are living documents regularly updated to reflect industry regulations, labor laws, or company policy changes.
- These may be printed or in digital form, or both.
- Many companies require that their employees sign a document showing that they have reviewed the manual and understand the policies.
Is there a difference between an Employee Manual and an HR Manual?
Yes! Your Employee Manual should outline your organization’s expectations for employee conduct, whereas your HR Manual should explain the process for dealing with employees who violate the code of conduct.
What are the goals of an Employee Manual?
- To communicate your company policies.
- To set and define company expectations.
- To reduce potential liability.
- To give new employees a strong start with your company.
How can SACS Consulting help?
SACS Consulting & Investigative Services, Inc. can review and update your existing manuals, or start from scratch to establish one. We will ensure your employee manuals cover everything from hiring to termination – including the policies and procedures that reduce your risks of ending up in court or out of business. Contact us to speak with one of our HR Policies specialists today!