CHICAGO – An employee handbook clearly states what the company expects from an employee and what legal obligations the employer has to protect a small business like a self-service laundry from lawsuits and claims by employees.
It is designed to prevent misunderstandings and dissatisfaction that can lead to what Karen A. Young calls the “HR drama”.
Young, SPHR, SHRM-SCP, is a veteran human resource professional and writer beginning her 16th year as President of HR Resolutions. Her Pennsylvania-based company supports small businesses such as self-service laundries on a national basis.
“We’re advocates for the organization so that employees can have employees, but we also need to be advocates for the employees so that the organization’s work can be done,” she says.
Part 1 of that story looked at the impact on workforce size and areas of employment that should be covered in a manual. Let’s conclude today by looking at the review periods and seeking help creating your company’s employee handbook.
READ EVERY YEAR, CHECK EVERY FEW YEARS
“I recommend that managers and executives read (manuals) every year and probably have them reviewed every two to three years,” says Young. “I wouldn’t go more than five years. Five is really driving it forward in an HR world.
“The reason I say I read it every year is because I get into trouble that can get you into trouble. When I post a guideline that I no longer follow but that I still find in the manual that’s trouble. “
Young offered an example that doesn’t necessarily fit the lingerie profile, but it’s worth going through. A company has an attendance policy – “Be at your work place at your assigned start time” – and a separate work-from-home policy that prohibits working from home. No manual revisions have been issued, but employees can now work from home due to the pandemic.
The business owner notices an employee who does not log on to their computer at their allotted time each day. He talked to her about it, documented it and made her aware that there could be disciplinary action up to the termination.
Ultimately, the owner decides they have enough and fires the employee based on the attendance policy.
When applying for unemployment, the former employee advises that she is allowed to work from home despite the company guidelines, so she is not sure which company guidelines are current.
“That is why it is so important to review the employee manual every year. I’m not saying you need to reissue, but if you have a policy that you will no longer follow please include an attachment to be included. “
YOU CAN DO IT YOURSELF, BUT SHOULD YOU?
Small business owners are known to be jack-of-all-trades, but Young doesn’t recommend going into creating or revising an employee handbook without assistance.
“You should look at your payroll company. HR support may be available to them. … you should speak to your lawyer. … Look for an independent recruiter in your market. Reach them. “
Your regional chamber of commerce is another potential source.
Regardless of how you choose your company’s employee handbook, it is always recommended that an attorney review it and sign it out. And when a counselor says they can handle it on their own without legal review, Young says it is a cause for concern.
“Talk to your employees. Let them know what you are doing. Find some input from them. What do you want to see? And think of them as guidelines that are not set in stone. Don’t write a guideline that you have to follow letter by letter. Write it in a way that is flexible for your business. “
The first time you’re creating a manual, share it publicly during a staff meeting, allow time for review, and then take the time to speak to each member of staff to answer specific questions.
In their experience, the most common mistake a small business makes with their manual is to include unnecessary guidelines.
“Introduce guidelines you don’t need. For example family and sick leave. If you have less than 50 employees, don’t say you are offering family vacation because once you post it in the manual, you are required to follow the family vacation guidelines. “
The Family Medical Leave Act entitles eligible employees of insured employers to unpaid, job-protected leave for certain family and medical reasons, according to the U.S. Department of Labor.
“Don’t do this to yourself,” says Young. “Make sure the manual conforms to the regulations that apply to your size of company and your state.”
An employee handbook is a worthwhile tool that, if handled correctly, can save you a lot of stress.
“It’s worth a small investment on the upside,” says Young. “The average equal opportunity entitlement is around $ 292,000 and it takes two years to reach that point, but it is most likely five to six. Who has that much time? How Much Laundry Do You Have to Do to Save $ 292,000? “
Miss part 1? You can read it HERE.
(Photo: © londondeposit / Depositphotos)
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