HR Perspective, May 2006

Reducing Risk With An Employee Handbook

In This Issue

• 7 Questions To Answer Before Developing An Employee Handbook 
• 3 Essential Human Resource Policies To Protect Your Company
• Top 4 Reasons To Have An Employee Handbook

7 Questions To Answer Before Developing An Employee Handbook

• How many people does your company employ?
• In which states do you have employees?
• Is your organization a federal contractor?
• What are the company’s current policies, written and unwritten?
• Which policies meet the needs of the business? Which do not and why?
• What types of employee issues steal time from critical business initiatives?
• What types of employee complaints have been made—sexual harassment, discrimination or other high-risk claims?

Answering these questions helps determine which federal and state laws your company must comply with. Aligning Human Resource policies with strategic goals and customizing policies to your company, industry, and culture, helps drive the business in the right direction. Understanding employee issues helps you develop policies that reduce your company’s risk. Publishing an up-to-date handbook helps ensure employees know what is expected of them.

3 Essential Human Resource Policies To Protect Your Company

• Sexual Harassment
• Electronic Communications
• At-Will Employment

With over $50 million paid by employers to settle sexual harassment claims in 2005, establishing a zero tolerance policy, mandatory in Massachusetts and many other states, is critical to protecting your company’s assets. Among the many statements that must be included in your sexual harassment policy are these 4—a definition of sexual harassment, sexual harassment and retaliation against employees complaining of sexual harassment will not be tolerated, a description of your internal complaint process and contact information for federal and state agencies in case an employee chooses to file a complaint with them.

While technology significantly increases productivity, used inappropriately, email, the Internet, cell phones and voice mail put your company at serious risk. Misuse of technology has resulted in successful claims of sexual harassment and even wrongful death. An electronic communications policy should include these 4 critical pieces of information—the company is the owner of its technology and has a right to monitor it; employees have no right to personal privacy with information stored, created, received or sent over the company’s computer systems including voice mail and email; policies against sexual harassment apply fully to voice mail and email systems and to the use of the Internet; and a description of approved uses of the company’s technology.

Succeeding in a rapidly-changing, competitive environment requires flexibility in staffing. As your business grows and your needs change, different employee skill sets may be required. When productivity declines due to poor performance, you can’t afford to retain those employees. An at-will employment policy gives you the flexibility to terminate employees as business needs dictate, within the law. At a minimum, your handbook should include 2 references to at-will employment—in a specific at-will employment policy and in a disclaimer explaining benefits are not contractual or a promise of continued employment.

Top 4 Reasons To Have An Employee Handbook

• Compliance with federal and state employment laws protects company assets
• Clarifying company expectations reduces high-risk employee behavior
• Increasing consistency, fairness and equity improves employee morale, productivity and retention
• Eliminating assumptions about policies, reduces unreasonable employee expectations

If your company already has an employee handbook, learn how an Employee Handbook Review can help you assess current risks. If your company doesn’t have a handbook, learn how a customized Employee Handbook can help protect your company’s assets.