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Why Employee Handbook / Policy Manuals are important for company?

HR Handbook

A comprehensive employee handbook is a necessity in today’s business community. Employee Handbooks are also often called Policy And Procedures Manuals. The Handbook/Manual is a statement of the Policies of The Business and How the Business Is to Be Conducted. The Company Employee Handbook is one of the most important Communication Tools between Company and its Employees. Not only does it set forth organization’s expectations from there employee, but it also describes what there employee can expect from the company. It Is Essential That Your Company Has One And That It Be Clear And As Unambiguous As Possible.

Employee handbooks set forth expectations between the employer and the employee. A handbook is a tool to provide clear boundaries for the employee and to let the employee know what his rules and benefits are. Employers can clearly communicate to employees how the employees should behave, what they should wear and how they will compensate, discipline and reward employees. Employees will understand their responsibilities and have a reference point for how to do their jobs and maintain their status.


An employee handbook has several advantages. The policy book helps an organization run more smoothly by outlining the do’s and don’ts of the workplace. It encourages employee accountability and maintains stable job performance because employees understand what is expected of them. Employee handbooks also explain disciplinary procedures, which helps make performance management more straightforward. Here are benefits of having HR Manual / Handbook for your company:

Important tool in Employee Orientation

The Company Employee Handbook and Related Personnel Policies should be one of the first Formal Communication that you will have with an employee after they are hired. The handbook can describe the background of the company and include the employer’s “mission statement,” providing new employees with a preview of their new employer’s “company culture.” In addition, a comprehensive employee handbook gives employees a source of information to consult when questions arise which can be easily answered without having to approach management.

Helps in setting expectations of its employees

An employee handbook should clearly describe an employer’s policies. Doing so allows all employees to gain access to the same information, and allows employers to set forth their expectations in a comprehensible and consistent manner.

Legal Protection

The most vital benefit of having an employee handbook is that it often protects companies from employees’ legal claims. For example: Employee handbook provide valuable legal protection is sexual harassment. Employers are allowed to make use of an “affirmative defence” when one of their employees alleges that a manager or supervisor has subjected him/her to a “hostile work environment.” Part of this defence involves the employer demonstrating that it maintained an effective anti- harassment policy, and the easiest and most efficient way of doing this is by being able to produce an employee handbook with well-drafted anti- harassment language. The successful assertion of this defence allows an employer to either reduce its damages or avoid liability all together.

Internalizing Disputes

An employee handbook should contain a policy which describes where to go and whom to seek out in the event that an employee has a problem or grievance. Having such a policy prominently displayed in an employee handbook stresses the notion that employees should seek resolution to their problems from within a company, as opposed to immediately bringing in an outside lawyer or government agency whenever a problem/disagreement arises.

Guidance for Managers

Employers can also use employee handbooks as a way of providing managers/supervisors with information on key management policies. It helps managers to guide their team members to conduct as per the company guidelines, such as how to recognize the signs of substance abuse, performance counselling and corrective action, and interviewing and hiring guidelines.

In the event of a dispute or Poor Performance review, this will be the first place that the employee turns, in this case employee manual encourages prompt resolve of workplace disputes by giving employees the proper procedures for voicing office conflicts. Make sure the first Impression should be good one. Handbook should contain enough detail to avoid confusion, but not so much as to overwhelm. Companies that use an employee handbook open the doors of communication between employees and management

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