5 Ways Your Employee Handbook Benefits Your Business

Employee Handbook Benefits.

Does your business have an employee handbook? If not, you’re not alone. Some statistics suggest that as many as three out of four small businesses don’t have an updated handbook. While they’re not legally required, providing employees with a handbook serves as simple yet detailed protection for employees and businesses alike. Employee handbooks outline policies, procedures, and benefits. They can be as simple or as detailed as you would like, but a well-written handbook can save you from more than one work-related headache. Here are five employee handbook benefits you should know about.

  1. New employees understand the work dynamic they’re entering

    A handbook can provide employees with a clear understanding of what they’re responsible for, including how to request time off, how to call in sick, and who to go to with questions about policies or procedures.

    Handbooks also promote healthy management-employee relationships. Just as a manual lets employees know what they’re expected to do, they can also be used to outline what employees can expect from management, including timekeeping policies, pay periods, performance management programs, and so forth. By outlining all policies and expectations on both sides of the fence, confusion and inconsistencies are essentially minimized in the workplace.

  2. Benefits are explained and utilized

    A solid benefits package can help you retain high-quality employees and prevent the side effects of high turnover. But if your employees are unaware of what’s offered, they could be under the false impression your benefits are lacking. Include summaries associated with your benefits package in your handbook, including paid vacations, 401(K), health insurance, dental insurance, vision insurance, paid parental leave, and college reimbursement programs.You should also include other fun perks you offer employees, such as company picnics, retreats, bring your child to work events, or company luncheons. If you believe there is something that sets you apart from competing companies and benefits your employees, include it. Highlight the positives and you’ll encourage loyalty and enthusiasm in the workplace.

  3. Ensures compliance with company rules as well as federal, state and local laws

    Use your employee handbook to lay out the rules within your company. This provides employees with one place to look and prevents disagreements if a disciplinary issue arises.Handbooks can also be used to outline and enforce state and federal laws. Take the time to learn the laws that apply to the size of your business and the area it’s located. This is also where you should include rules regarding safety. Include any Occupational Safety and Health Administration regulations pertaining to your industry.

  4. Serves as protection from litigation

    Unfortunately, lawsuits are a threat in every business, no matter its size or industry. If yours should face a lawsuit or discrimination claim one day from a current or former employee, your handbook could play an influential role in the final outcome. For this reason, make sure you have an expert review your handbook’s wording.

  5. Promotes open communication and transparency

    Open communication is key to a positive work environment. By giving new hires your handbook, you’re letting them know your mission, purpose, and core values. This sets the stage for a positive business relationship and lets team members know who they can go to with questions about their employment, rights, and work environment.


Handbooks also eliminate the “he said, she said” argument. You won’t have to worry about telling one employee one thing and a different employee something else. Even if your intentions are pure, mixing up your policies between employees can lead to massive headaches.

Put simply, a handbook can protect your business, promote growth, and provide employees with a one-stop-shop for information.

To maximize employee handbook benefits, make sure updated handbooks are given to every new hire and that they sign a document stating they have read and understand the handbook. Handbooks should also be readily available upon request, either in physical form or virtual.

For more information about employee handbooks or other HR solutions, contact us today at marketing@tandemhr.com or 630.928.0510.