From company background, to code of conduct and policies, this employee handbook guide will teach you everything you need to write a manual in minutes.

Create The Best Employee Handbook In 5 Easy Steps

Do you have an employee handbook in place? If not, how do you ensure all employees know your company policies? 

According to a recent survey conducted by the Harvard Business Review (HBR), only 52% of new hires were satisfied with their onboarding experience, while nearly one-third found it confusing, and 22% considered it disorganized. Additionally, 85% of respondents believed an employee handbook can significantly improve onboarding.

A handbook is more than a collection of policies; It is the easiest and most efficient way to set clear expectations, reduce misunderstanding, and ensure every team member is aligned with your company’s values, mission, and operational guidelines.

Whether starting from scratch or updating an existing manual, this post will walk you through practical ways to create the best employee handbook.

Table Of Contents

• What Is An Employee Handbook?
• Why You Should Create An Employee Handbook?
• What Does An Employee Handbook Contain?
• Employee Handbook Template
• How To Create An Employee Handbook: Step-by-Step Process
• Legal Requirements For Employee Handbooks
• Tips To Create A Handbook Your Employees Will Read
• Create Your Employee Handbook In Minutes With Excelforce
• Frequently Asked Questions (FAQs)

What Is An Employee Handbook?

An employee handbook, or an employee manual, is a comprehensive document that outlines your company policies, goals, vision, and mission. It tells employees what it means to be a part of your organization and serves as a reference whenever they have questions about company expectations, benefits, and responsibilities. It also offers guidelines on how various workplace scenarios should be handled.

The staff handbook should be handed out to employees during their onboarding process, either as a digital or printed document.

Why Should You Create An Employee Handbook?

While it is fine not to have a handbook for employees when you’re getting started, you should build one as your business grows.

An employee manual lays out your company policies and procedures so everyone knows what to expect. This makes communicating rules and responsibilities easier and reduces misunderstanding and confusion.

In addition, a handbook constantly reminds your employees about company values and goals, pushing them to work in a way that aligns with your business vision. Above all, a well-prepared staff manual will protect your business legally, acting as proof that you have made your employees aware of your policies.

What Does An Employee Handbook Contain?

There are no hard rules about what should be or shouldn’t be included in a staff manual. However, the more information you provide, the better your employees will work to support your organizational goals. Here is some key information that is usually included in a standard employee handbook.

Employee Handbook Template

• Opening statement
  
  
• Company background
  • History
  • Vision
  • Mission
  • Values
  • Goals

• Code of conduct
  • Dress code
  • Responsibilities
  • Anti-discrimination and harassment policies
  • Social media usage guidelines
  • Conflict resolution procedures
  • Drug and alcohol usage policy
• Company Policies
  • Recruitment and hiring process
  • Job roles
  • Meal and rest breaks
  • Equity sharing plans
  • Company holidays
  • Performance evaluation process
  • Procedures for promotion
  • Laws governing employment
  • Termination guidelines and procedures
• Compensation and benefits
  • Payment schedule
  • Bonuses
  • Overtime policies
  • Paid time off policies
  • Work-from-home policies
  • Insurance coverage
  • Retirement plans
• Safety and Security
  • Data protection and privacy policies
  • Confidentiality agreements
  • Workplace safety protocols
  • Technology Standards
• Acknowledgment form (To confirm your employees have read, understood, and agreed to abide by the guidelines and policies outlined in the document).

How To Create An Employee Handbook: Step-by-Step Process

#1 – Decide The Format

Before you begin writing, you must decide how to present the information to your employees. A presentation? A PDF file? A small booklet? A pamphlet?

Digital employee handbooks are the easiest to share and can be accessed from anywhere. They also offer the advantage of easy updates and interactive features, such as hyperlinks and embedded videos, which can enhance understanding. On the other hand, a physical handbook is ideal for those who prefer tangible documents.

Consider your company size and how frequently you anticipate updating the workplace handbook to choose the right format.

#2 – Define Your Objectives And Create An Outline

Ask yourself why you are creating an employee handbook. Are you looking to improve internal communication, ensure legal compliance, or create a positive working environment?

These objectives will guide the tone and content of your document and help you craft a staff manual that is focused and manageable.

#3 – Decide What Policies To Include And What To Avoid

Research the relevant local, state, and federal laws. You can use professional forums, government websites, research papers, and legal sources to gather this information. Implement the most ideal policies and industry best practices to protect your workforce.

In addition, look at what other companies in your industry have implemented. This will give you valuable ideas on how you can shape your policies. 

#4 – Draft The Handbook

Your employee manual should be comprehensive and easy to understand. This means you should be selective about what you include in the document.

Identify information that every team member should know to ensure a fair and well-run workplace. This might include a code of conduct, working hours, paid time off policies, safety guidelines, anti-discrimination rules, etc.

Minor details can be left out to avoid overloading your handbook and confusing your employees. For example, if certain procedures are covered in other company documents or training modules, you can reference them briefly instead of duplicating content.

#5 – Get Feedback And Revise

After drafting your employee handbook, share it with a small section of people within your company and get their feedback on clarity and readability. Encourage honest opinions on what works well and what needs improvement.

Next, have your legal advisors review the staff manual to ensure it complies with current laws and industry standards.

Once you gather feedback, carefully revise the handbook and distribute it to your team.

Legal Requirements for Employee Handbooks

Laws and regulations change frequently, and your employee handbook must reflect these updates to remain legally compliant. 

Set time aside every six to twelve months to review and update your staff manual. During this process, you should check for state and federal law changes, updates to workplace policies, and new industry regulations. In case you don't have the time or resources to make these updates manually, use an HR compliance tool like Excelforce.

Excelforce's HR Support Center packages provide real-time alerts when state and federal laws change, along with detailed content updates. This keeps your company on top of changes and prevents legal trouble.

Tips To Create A Handbook Your Employees Will Read

1. Write as if you’re speaking directly to your team. Use a clear, friendly tone instead of heavy legal jargon.
2. Break up the text with clear headings, bullet points, and visuals, like infographics.
3. Regularly review the handbook based on feedback from your team, and keep the content relevant and up-to-date.

Create Your Employee Handbook In Minutes With Excelforce

An employee handbook is a vital document that can help foster a positive working environment, comply with laws governing employment, and improve your business functionality. However, making an employee handbook is a task that will consume a lot of your time, resources, and energy.

The good news is that you don’t have to do it alone. Excelforce’s innovative HR packages come with tools like a smart employee handbook maker that will help you build a comprehensive, personalized manual.

With our software, all you have to do is fill out a simple form to generate the draft. You can then edit it further to meet your organization’s specific needs and download the final handbook in the format of your choice.

That isn’t all! The employee handbook maker keeps you ahead of the curve by sending timely notifications about necessary policy updates. This will not only ensure your policies remain current and compliant but also save you countless hours spent on manual research and revisions.

Reach out to us if you don’t already have a documented staff handbook in place, and we’ll get you started!

FAQs

Is an employee handbook required by law?

While there are no federal laws that mandate businesses have an employee handbook, most states require you to inform employees about company policies, compensation, benefits, paid time off, etc. So, even if it isn't required, creating an employee handbook can protect your company from potential legal issues.

Can I use an AI-generated employee handbook?

AI can be a great starting point to write a basic employee handbook. However, you shouldn’t rely on it entirely since the information generated can be inaccurate and legally non-compliant.

If you want a legally sound employee handbook, consider using Excelforce’s employee handbook maker. It helps you create a custom, compliant handbook tailored to your specific business needs.

How long should an employee handbook be?

Most employee handbooks are around 10-50 pages, but there are no hard rules about how long a manual should be. The rule of thumb is to keep it long enough to cover necessary details but short enough not to overwhelm the employees.

Does Microsoft Word have an employee handbook template?

There isn’t a specific employee handbook template on Microsoft Word, but it does have a few templates you can modify to create a manual.

Does a small business need an employee handbook?

Regardless of the size, every business should have an employee handbook in place. While it might seem unnecessary for a small team, having a staff manual helps set clear expectations, prevent misunderstandings, and protect your business from legal troubles.