EMPLOYEE HANDBOOK BASICS

David Grusenmeyer[1]
Senior Extension Associate, Cornell University

 

 

I wish I had a nickel for every time I’ve been asked “How tall are you?” or  “How’s the weather up there?”  Sometimes I just want to spit and say “Raining!  How’s the weather down there?”  Ever notice how getting the same question over and over again gets old fast?  I have to remind myself that even though I’ve answered that question hundreds of times I haven’t answered it for THIS person, or if I have they’ve forgotten.  On the positive side, at least they care enough to ask!

 

In business these frustrating and tedious questions also exist.  Fortunately they can be eliminated or at least reduced through effective organizational communication.  By formulating standard answers, instructions or explanations and putting them in writing you place the information where everyone can see and refer to it whenever necessary.  That’s why developing internal organizational communication tools like newsletters, informational bulletins, standard operating procedures, job descriptions, employee handbooks, and policy manuals make so much sense.

 

Effective organizational communication will allow you to spend less time answering the same questions over and over and focus more of your attention on important management issues like strategic business planning. 

 

Investing your management time and energy in which of the following questions will have the greatest long-term payoff for your business?  Focusing on questions like; over the next two years what changes do I anticipate in my business, my industry and related industries?  Based on those predictions, should I buy these calves now?  At this price?”  vs.  “Where do I park?”, “How will you handle work scheduling for 4^th of July this year?”, “I really need the money this week.  Can I get an advance on my pay check?” and “Can I use the farm shop and tools this weekend to work on my car, and can I borrow a farm truck while it’s being repaired?”

 

While strategic management issues are far more difficult to deal with compared to answering questions like, when and where do employees pick up their pay checks, the long-term payoffs to the business for dealing with them are much higher.

Benefits of an employee handbook

 

Developing an employee handbook requires significant management effort, but investing the time and energy will return numerous benefits, including:

¨    Provides a resource book to answer many reoccurring questions that employees have about their employment.  This relieves owners or managers from having to answer the same questions over and over again.

¨    Lets the employee know something about the business, it’s organization, history, growth through the years, traditions, values, mission, and vision for the future.

¨    Sets out guidelines and eliminates gray areas so that everyone, given a particular situation is treated fairly and equitably (not necessarily equally).  This is especially important when there are multiple managers or multiple work locations.

¨    Sends a message of open communication.  Here for everyone to see and refer to are the “rules and principles” we operate and work by in this business.

¨    Shows the employer and the employment environment in a positive, professional light. 

¨    Lets the employee feel more at home and comfortable in their new employment.  Gives them basic information so there is less, “Learn by screwing up”.

¨    Lets employees know what’s expected and sets certain guidelines for behavior and potential consequences of that behavior, both positive and negative.

¨    Lets the employee know what benefits the company provides including holidays, vacation, health insurance, personal use of business resources such as the shop and tools for projects or the business phone, computer and internet access.

¨    Can be useful in avoiding unintended contractual relationships with employees.

¨    Can be useful in a legal defense.

 

 

Getting Started Writing the Employee Handbook

 

As staff size grows employee handbooks provide a valuable tool to improve employee management and communication.  But before diving headlong into writing a handbook, time and frustration can be saved in the long run by answering a few questions and thinking through a few issues up front.

 

Are you ready to write and effectively implement an employee handbook?  Are you prepared to:

·       Make decisions and commitments about policies and rules for your farm business?

·       Consistently enforce the policies and rules?

·       Continually revise and update the handbook as needed?

·       Discuss and explain the handbook contents to your employees (new and old)?

·       Comply with applicable labor laws?

 

Think about which questions above are important to the success of your business.  How would you answer each question?  Rate each question on a scale of 1 – 3, 1 for "No", 2 for "Maybe" and 3 for "Yes".  Then add up your score.  If your score is 5 – 7, you may want to discuss your answers with other farm owners, developing a handbook will probably not be very effective.  If your score is 7 – 11, read the rest of this article or complete an employee handbook development workshop and try again.  If your score is 12 – 15, get started, you’re in a good position and frame of mind to effectively utilize a handbook.

 

Thinking through and answering the following questions will give you useful guidance during your employee handbook development process.

 

1.     What is your purpose or objective in writing an employee handbook?

 

2.     Which employees and employee levels will the handbook cover? (If managerial employees are treated differently from non-managerial employees, it may be preferable to develop two different handbooks.)

 

3.     Will the handbook cover both full and part time employees?  Year round and seasonal employees? 

 

4.     Will it apply equally to son and daughter employees or other non-owner/manager family members?

 

5.     Once written, how will you monitor policies for timeliness and ongoing accuracy?

 

 

Although some of these issues may seem elementary, addressing and resolving them early in the drafting process will save considerable time and frustration later.

 

Experience has shown that problems may arise when an employer fails to do the follow-up work of consistently enforcing policies in the employee handbook.  If you write rules and policies, publish them in a handbook, and then don’t follow them, you may have a serious negative impact on morale, lose the respect of your employees, and risk possible legal problems.

 

 

Organizing the Effort

 

If you have not already done so, identify one individual who will be primarily responsible for the handbook development.  Ideally this “coordinator” should be a management level person with the ability and authority to develop and implement policies or, at very least, make effective recommendations in that regard.

 

Depending on the size and complexity of the farm and the size and complexity of the handbook being developed, one or more management level individuals may also be assigned to help the person primarily responsible for the handbook.  This helps insure the development of viable policies that are applicable and effective in all phases of the operation. 

 

Developing of an employee handbook is a management function.  Employee involvement in the policy development process may make implementation of the handbook and acceptance by the employees easier.  Additionally, a trusted long-time employee may be a valuable resource in developing an employee handbook.  However, the handbook and its’ contents are 100% the responsibility of owners and upper management.

 

During the planning stage consider the format and organization of the handbook contents.  Consider first your audience and what purpose the handbook will serve.  Generally, dividing the handbook into sections, each containing related policy topics, is the most effective way to organize the material.  This makes it easier to find specific items when referencing the handbook later.  Employees will refer to it to find out details of such things as taking vacation, using farm vehicles, getting pay advances, etc.

 

As you develop your handbook be sure to emphasize the importance of the employees to the business.  Once that importance has been conveyed, management must then follow up with positive actions.

 

The order used to present the topics is mostly a matter of personal preference.  It generally makes sense to put the employers’ welcome, farm history, mission statement and core values, organizational chart and description of the business in the beginning to welcome new employees and acquaint them with the business.

Contents

 

There are literally hundreds of possible policy topics that can be covered in an employee handbook.  The basic rule for including a statement on a particular issue is:

If there is a legal need, if the situation has come up in the past, or if it comes up as a question or issue on a regular basis, include it.

If you don’t have a specific reason for including a particular policy, then leave it out.  Shorter and simpler is generally better.

 

There are however certain sections that every employee handbook should contain.  Those sections include:

·       Introduction to the Handbook and Welcome

·       Mission Statement

·       Business History

·       Organization of the Business

·       Equal Opportunity Employer Statement

·       Employment-At-Will Statement

·       Harassment Policy

 

Beyond this short list of highly recommended topics include only those you believe are necessary to help you better manage and communicate with your employees.  Refer to the Handbook Organization Worksheet  at the end of this article to help you get started.

 

 

Using The Right Words

 

With all the possible combinations of words, the risk of leaving out a word that should be there and including one that shouldn’t, combined with creative interpretation of what you actually mean, there is probably no way to get every thing worded 100% correct.  There are however some general principles to keep in mind that will help.

 

This is Not a Contract

Employee handbooks should include a prominent disclaimer saying it is not and does not constitute a contract of employment.  Any reference to continued or permanent employment should be eliminated.

 

Keep It Short & Simple

Go through the entire manual eliminating anything unnecessary.  If you don’t have a specific reason for wanting a statement in the handbook, it shouldn’t be in there.

 

 

Get The “Shall” Out

Look for phrases like, “…employer shall…” and “...employer will…”.  Replace “shall” and “will” with “may”, “might” or “could”.  This gives you more flexibility in dealing with individual situations.

 

State Consequences for Unacceptable Behavior

“Violation of this or any other rule or policy may result in disciplinary action, possibly including immediate termination of employment.”  Employees have been successful in claiming unemployment benefits or wrongful termination judgments, even though the handbook contained policy statements against a particular behavior, because the handbook did not say firing might be the result.

 

 

Employee Handbook Development Resource

 

Guide to Employee Handbooks.  Robert J. Nobile.  Warren, Gorham & Lamont, 1999, 13St. James Avenue, Boston, MA 02116.  1-800-950-1216

 

Writing an Employee Handbook: A Guide For Farm Managers.  Thomas R. Maloney and Kristine T. Petracek, Applied Economics and Management, Cornell University, 1994.  $7.00 payable to Cornell University, Resource Center, Cornell University, 7 Business and Technology Park, Ithaca, NY 14850.

 

Writing and Using Your Employee Handbook For Agriculture and Horticulture.  Ken McEwan, Wayne Howard, Ralph Luimes, and Lorne Owen.  Ontario Agriculture Human Resource Committee, Ontario Ministry of Agriculture, Food and Rural Affairs, 1996.  OAHRC Office (905) 765-0441, 320 Greens Road, Caledonia, Ontario, N3W 1X3.

 

A web search will turn up numerous useful resources.  One web site with up to date links to useful resources is http://www.hr-guide.com/data/023.htm

 

A search of your local library or bookstore or an on-line bookstore may also turn up some useful employee handbook development reference material.

 

The figure on the next page titled The Handbook Development Process gives a good overview of the steps involved in writing and maintaining an employee handbook.
The Handbook Development Process

 

Handbook Organization Worksheet

 

 

	If you need more than one handbook, mark which topics apply to whom.
Potential Handbook Topics	Full-Time	Part-Time	Seasonal	Management	All Employees	Who is responsible for developing the policy statement?
1.    Welcome
2.    Brief History
3.    Mission Statement
4.    Business Policies
General Policy Statement
Organizational Structure
Personnel Files
Confidentiality of Information
Employment at Will
Employing Relatives
Communication
Giving Notice
Layoffs
Medical Examinations
Job Posting
Drug-Free Workplace
Workplace Violence
Workplace Searches
Equal Opportunity Employment
Attitude and Team Cooperation
Harassment at the Workplace
Alcohol and Substance Abuse
Smoking
Dress Code
Personal Phone Calls
Employee Concerns-“Open Door” Policy
Parking Your Vehicle
Paying Mileage
Company Tools/Equipment & Vehicles
Safety at the Workplace
Handling Visitors and Customers
5.    Employee Orientation and Training
Trial Period of Employment
Orientatio