Employee handbooks MGT 3513 - Marler

Overview of discussion Purpose Commonly included topics Pros and cons Steps to follow Common mistakes Tips on terminology Trends Questions

Employee handbook ≠ _____________manual

What is the purpose of an employee handbook? Clearly communicate relevant information Summary of employment policies and procedures Orientation information for new employees Legal obligations & rights of employer and employee Responsibilities of employer and employee to each other Source: SHRM White Paper  11/1/1996  By Dale Scharinger, SPHR, Reviewed November 2002  

Three handbook examples “World’s shortest” http://www.businessinsider.com/nordstroms- employee-handbook-2014-10 Traditional format https://www.stonetrustinsurance.com/pdfs/LA SampleEmployeeHandbookRev08.pdf More modern format http://www.airmason.com/book/sterling

Commonly included topics Employer information Purpose of handbook Benefits information At-will disclaimer Policy information Safety information Procedure information Employee receipt form Employee responsibilities

What can a company do to get employees to read handbooks? Zappos https://www.youtube.com/watch?v=9I1Rq1KjEMI Valve http://www.valvesoftware.com/company/Valve_Ha ndbook_LowRes.pdf http://mashable.com/2012/04/22/valve-employee- handbook/#SgtdMtfiskqB

Answer: _____________ Are employee handbooks legally required?

Should every employer have an employee handbook? PROS CONS Fosters good employee relations Communicates well- defined, standard policies Establishes a common understanding between employee and employer Prevents lawsuits or provides legal defense Leads to workforce dissatisfaction Fosters inflexibility Does NOT guarantee that managers uniformly apply policies Risk of implied contract May prompt or support employee lawsuit Not required by law

Steps to follow: Don’t reinvent the wheel Before starting the process, educate yourself on employee handbooks!!! Look at examples from other companies Find handbooks the company has previously used Take advantage of templates (Warning: Use them only as a guide)

Creating an employee handbook: Steps to follow Step 1: Review and revisions to the current company policies Step 2: Create an outline Step 3: Summarize policies and procedures Step 4: Add each summary according to the outline Step 5: Review the entire handbook Step 6: Send to legal counsel for review Step 7: Select a means of publication Step 8: Distribute handbooks Step 9: Update as necessary Source: Shrm.org, “How to develop an employee handbook,” 6/1/2009

Common mistakes Using long, overly detailed handbooks with __________ language Putting the company on shaky legal ground Neglecting to include anti-harassment & discrimination policies Failing to consider federal, state, and local laws Inadvertently creating contractual rights (implied contract) Neglecting to have a lawyer review handbook Failing to obtain __________ employee’s acknowledgement that they have received, read, and understand the handbook Not educating __________ on policy Failing to regularly __________ the handbook

Consider using the term: Tips on Terminology Consider using the term: ___________ instead of permanent ______________ instead of probationary ______________salary rather than annual salary

Tips on Terminology Don’t imply that an employee will keep a job by following the stated guidelines Use ___________ e.g., “we are an at-will employer” NOTE: Even if you use a disclaimer, the court may still interpret the handbook as an _______ contract

Tips on Terminology Leave “wiggle room” “We will provide a safe work environment” “We strive to provide a safe working environment” Keep it _________ - - realize that your handbook will need to be changed in the future

Making handbooks more approachable Handbook Trends Making handbooks more approachable Digital handbooks (live documents) Acknowledgement forms Giving an employee the chance to _____ policies Policies related to technology Cellphone use and electronic monitoring Privacy of employee information

Advice on handbooks for small businesses: Useful websites Advice on handbooks for small businesses: https://www.sba.gov/starting-business/hire-retain- employees/employee-handbooks Interesting handbooks: http://www.nasdaq.com/article/6-inspiring- employee-handbook-examples-cm459464 Sample handbook: https://www.nfib.com/documents/pdf/faststart/mod el-employee-handbook.pdf with information about employee handbooks

Employee handbooks Questions???