9 Things To Know About Company Handbooks and Why They Matter

June 07, 2024
Creating and maintaining a thoughtful and strategic company handbook is an essential, but often underappreciated project for any organization. A well-developed handbook not only sets clear expectations for new employees, enhancing their onboarding experience and increasing retention, but it also protects organizations from the legal risks associated with outdated or insufficient policies. 

When you outline your company's values, procedures, and policies in an excellent handbook, it serves as a vital resource for both employees and employers. Here are some thoughts on the creation and maintenance of great company handbooks from the experts at Axios HR.

What should be the handbook bare minimum?


Every company handbook should include the fundamental things that ensure compliance and operational efficiency. These are the bare minimums that every handbook must cover and should be a top priority if your company currently doesn't address these in the current iteration of your handbook.

  • Company’s Statement or Commitment to Employees

Your handbook should start with a clear statement or commitment to your employees, setting the tone for your company culture and reassuring employees that their well-being and professional growth are things that the company values.

  • Federal and State Mandated Labor Law Notices

Incorporate any required federal or state labor law notices, often found on Labor Law & Employee Rights posters, to ensure employees are aware of their rights and protections. 

  • Operational Requirements

Outline any specific operational requirements that are critical in your business, such as work hours, attendance policies, and guidelines for remote work. This ensures that everyone is on the same page, and gives individual departments and teams a base to build their own culture and rhythms around.

3 things employees value but are often overlooked


While the basics are necessary, there are other cultural and company-specific information that employees highly value but sometimes can be ignored as an organizational handbook gets created. Addressing these can significantly enhance employee satisfaction and clarity, and leave no room for miscommunication, which can significantly impact an employees experience from day one.

  • Dress Code Expectations

Clearly outline any expectations regarding how employees should dress. This avoids potential misunderstandings and ensures everyone knows what is expected in terms of attire. Many companies have shifted into more casual, "dress for your day" policies. While many employees appreciate those policies, ensure that the dress-code expectations for different business situations and environments is clearly stated, and that any non-negotiables are communicated clearly and thoughtfully.

  • Easy-to-Understand Leave Policies

Leave policies should be simple and straightforward. Clearly explain eligibility requirements, the process for requesting leave, and any necessary documentation to help both managers and employees follow the guidelines. Include specifics on the different types of situations where an employee may require leave. If you have policies on bereavement, mental health, family situations, or injury, be specific about how employees engage with their managers or human resources department in these situations, to ensure that employees feel supported and that they know how to properly address any difficult situations.

  • Company’s Commitment to Safety

Include a section on your company's commitment to employee safety, outlining the steps taken to ensure a safe working environment and reassuring employees that their well-being is a priority. Include information about how employees should report unsafe conditions.

3 things to avoid


To ensure your handbook effective, helpful, and employee-friendly, it’s equally important to know what to avoid. Here are three things that should not be part of your handbook unless there are unique circumstances:

  • Department-Specific Content

Handbooks should cover the entire company rather than being specific to a department. If your company has operationally unique divisions, you may have specific guidelines for each division, but the main handbook should apply to all employees.

  • Detailed Job Descriptions

The handbook should guide employees on how they are expected to perform rather than detailing their specific duties. Job descriptions should outline specific tasks, while the handbook should focus on performance standards and behavioral expectations. At times, job responsibilities and job descriptions change and can be negotiated from employee-to-employee. Avoiding including specific job descriptions to avoid confusion within organizations, teams, and departments.

  • Binding Language

Remember, a handbook is not a contract. A signed acknowledgment of the handbook is not legally binding. Avoid using language that suggests the handbook is a contract to prevent potential legal misunderstandings.

Looking for help?


At Axios HR, we recognize that updating or creating a company handbook can feel like an overwhelming task. If you feel like your organization doesn't have the manpower, or expertise to execute a handbook project like this, we would be happy to help!

 Our handbook services are tailored to businesses of any size, ensuring your handbook is comprehensive, compliant, and easy to understand. Contact Axios HR today to learn more about how we can assist you in creating a handbook that supports your company's success and your employees' satisfaction.
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