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Should A Small Business Have An Employee Handbook?

Many small business owners that only have a few employees may think there is no need to have an employee handbook or guide. With so few people it may seem reasonable that anything that needs to be communicated can be done directly. However, there are benefits to having set guidelines on what is expected of employees in writing, regardless of whether you have one employee or hundreds.

Here are three reasons that even the smallest business should consider having an official employee handbook.

1. Clear communication. The main idea behind an employee handbook is to relay what is and is not acceptable at a company. While an employer can do this verbally, what they mean and how it is interpreted are not necessarily the same thing. By having a written policy on what is expected regarding issues such as time off, dress code, job duties and other standard human resource issues, there is no confusion on what the policies are.

2. Consistency. Having an employee handbook ensures that all employees are given the same information and have the same expectations. Instead of one employee insisting that they were told at one point that they could do x,y or z, the handbook clearly outlines the policies for everyone.

3. Legal reasons. Unfortunately, all employers, even those with only one or two employees must protect themselves from legal issues with their employees. By stating what is expected in black and white, this can be valuable if an employee must be terminated for breaking the rules. It can also deter discrimination and other lawsuits when policies are clearly communicated through a handbook.

In addition to these reasons, having an employee handbook can help when hiring new employees or address issues with tenured employees that have bad habits. Employers should have all employees sign and date a form relaying that they read and received the handbook and this should be done whenever it is updated with new information as well. In many ways, having policies written can alleviate many employee issues and make the workplace better for everyone.

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