Having a clear, concise and comprehensive employee handbook can be a powerful tool as a startup founder or small business owner. Why? Because an effective handbook not only communicates your company's culture, values, and expectations, but also keeps you legally protected.
See below our guide on how to create a comprehensive and compliant employee handbook for your company.
Employee Handbooks 101
What is an Employee Handbook?
An employee handbook, also referred to as a staff handbook, is a document that outlines your company's policies, procedures, and expectations. It serves as a reference guide, providing employees with clear information about what they can expect from the management, and what the management expects from them.
Why Your Business Needs One
An employee handbook is vital to your business for several reasons:
- It helps foster a positive workplace culture
- It establishes clear communication, and reduces misunderstandings
- It ensures legal compliance, as it provides written proof that your company has clearly communicated its policies to all employees.
What are Company Policies and Procedures?
Company policies and procedures are rules and guidelines that define how business should be conducted and how various situations should be handled. Policies can cover everything from data security, anti-harassment, to how expenses are claimed. Procedures, on the other hand, are step-by-step instructions on how to execute specific tasks.
Tips for Developing a Staff Handbook as a Small Business Owner in the UK
The Anatomy of a Robust Employee Handbook
A comprehensive employee handbook typically includes sections on company mission and values, general employment information, codes of conduct, compensation and benefits, workplace safety, leave policies, and procedures for complaints, disciplinary action, and termination. Ultimately, it is the MO of how your company is run on the people side.
Is an Employee Handbook Mandatory in the UK?
While there's no legal requirement in the UK to have an employee handbook, it's strongly recommended. It not only helps you to demonstrate that you're meeting your legal obligations in terms of policies and procedures, but it also sets clear expectations for your employees.
Can I Write My Staff Handbook Myself or Use an Employee Handbook template?
You definitely can write your staff handbook. However, given the legal implications, make sure it complies with UK employment law. We’d recommend consulting with a HR professional or an employment lawyer when doing so - it’ll be money well spent.
As for using a template, yes, an employee handbook template can provide you with a good starting point. However, customise templates to reflect your business's unique culture and needs.
Our Tips for Creating a Successful Staff Handbook
Ultimately, you’ll need to spend a bit of time crafting an Employee Handbook that reflects your company’s culture and values:
- Keep it simple and concise. You’ll want to ensure each section is well understood by everyone in the team.
- Write in a clear, friendly tone. This isn’t an employment contract!
- Regularly update it to reflect changes in your company or in the law. Let your team know when you do so.
- (optional) Include a sign-off sheet for employees to acknowledge they've read and understood the contents.
Standout Employee Handbook Examples
Companies like Valve and Netflix are renowned for their innovative handbooks that reflect their unique cultures. While these are larger companies, they offer inspiration that can be tailored to your small business.
We can also recommend the Founder Library which has a wealth of resources on policies, guides and Better Wiki which will give you dozens of Handbook examples from fellow startups and small companies.
Building the Core of Your Employee Handbook
What Policies Should My Employee Handbook Include?
Your employee handbook should comprise a range of essential policies, all of which should align with UK employment law. Let's delve into each one:
Employment Basics: This section should outline the fundamental aspects of employment within your company. Include terms and conditions of employment, job descriptions, probationary periods, and contractual agreements. Clearly define your company's approach to equal opportunities, diversity, and inclusion.
Workplace Policies: Highlight how your business functions daily. Key aspects include health and safety regulations, data protection and privacy guidelines, internet and email usage, and procedures for handling personal grievances and disciplinary actions.
Code of Conduct: Here, you set the behavioural standards for your company. Specify acceptable workplace behaviour, dress codes, punctuality and attendance requirements. Discuss your company's stance on harassment, bullying, and conflict resolution.
Compensation and Development Policies: Outline your approach to salaries, raises, bonuses, and performance reviews. Discuss opportunities for professional development, including training and advancement.
Benefits and Perks: Use this section to detail the extra incentives you offer, like private healthcare, pension schemes, or flexible working options. Be clear about eligibility and conditions.
Working Hours, PTO and Vacation: Provide clarity on regular working hours, rest breaks, and overtime rules. Explain how holiday time, sick leave, maternity and paternity leave, and any other types of leave are administered.
Policies on Employee Resignation and Termination: Detail the procedures for voluntary resignation and the grounds for termination or redundancy. Clearly state the process for notice periods, final pay, and exit interviews.
By covering each of these key areas, you'll create a robust and comprehensive employee handbook that provides a clear framework for your business and your employees.
Frequently Asked Questions (FAQs) About Employee Handbooks
How often should I update my employee handbook?
Update your employee handbook at least annually, or whenever there's a significant change in your company or in employment law.
Should my employee handbook be detailed or concise?
Balance is key. Your handbook should be detailed enough to cover key policies and procedures, but concise enough to be easily understood by employees.
What are some common mistakes in creating employee handbooks?
Common mistakes include not customizing a template to fit your business, using legal or technical jargon, not updating it regularly, and not getting employees to acknowledge receipt and understanding of the handbook.
How can I make sure my staff actually reads the handbook?
Make it engaging and readable. Use a friendly, conversational tone. Include visuals or infographics where appropriate. Also, make it accessible - both digitally and in print.
Conclusion: Employee Handbooks as a Strategic Business Tool
A well-designed employee handbook is more than just a list of rules. It's a powerful tool that can drive your business's culture, communication, and legal compliance. Make the investment of time and resources to get it right, and it will pay dividends in the long run.
Related articles:
- The Essentials of Holiday Pay in the UK: A Quick Guide
- What does pro-rata mean and how to calculate it?
- Statutory Sick Pay (SSP): Calculator & Facts
- Time Off In Lieu, Day In Lieu Explained: Legalities, Benefits and How They Work
Having a clear, concise and comprehensive employee handbook can be a powerful tool as a startup founder or small business owner. Why? Because an effective handbook not only communicates your company's culture, values, and expectations, but also keeps you legally protected.
See below our guide on how to create a comprehensive and compliant employee handbook for your company.
Employee Handbooks 101
What is an Employee Handbook?
An employee handbook, also referred to as a staff handbook, is a document that outlines your company's policies, procedures, and expectations. It serves as a reference guide, providing employees with clear information about what they can expect from the management, and what the management expects from them.
Why Your Business Needs One
An employee handbook is vital to your business for several reasons:
- It helps foster a positive workplace culture
- It establishes clear communication, and reduces misunderstandings
- It ensures legal compliance, as it provides written proof that your company has clearly communicated its policies to all employees.
What are Company Policies and Procedures?
Company policies and procedures are rules and guidelines that define how business should be conducted and how various situations should be handled. Policies can cover everything from data security, anti-harassment, to how expenses are claimed. Procedures, on the other hand, are step-by-step instructions on how to execute specific tasks.
Tips for Developing a Staff Handbook as a Small Business Owner in the UK
The Anatomy of a Robust Employee Handbook
A comprehensive employee handbook typically includes sections on company mission and values, general employment information, codes of conduct, compensation and benefits, workplace safety, leave policies, and procedures for complaints, disciplinary action, and termination. Ultimately, it is the MO of how your company is run on the people side.
Is an Employee Handbook Mandatory in the UK?
While there's no legal requirement in the UK to have an employee handbook, it's strongly recommended. It not only helps you to demonstrate that you're meeting your legal obligations in terms of policies and procedures, but it also sets clear expectations for your employees.
Can I Write My Staff Handbook Myself or Use an Employee Handbook template?
You definitely can write your staff handbook. However, given the legal implications, make sure it complies with UK employment law. We’d recommend consulting with a HR professional or an employment lawyer when doing so - it’ll be money well spent.
As for using a template, yes, an employee handbook template can provide you with a good starting point. However, customise templates to reflect your business's unique culture and needs.
Our Tips for Creating a Successful Staff Handbook
Ultimately, you’ll need to spend a bit of time crafting an Employee Handbook that reflects your company’s culture and values:
- Keep it simple and concise. You’ll want to ensure each section is well understood by everyone in the team.
- Write in a clear, friendly tone. This isn’t an employment contract!
- Regularly update it to reflect changes in your company or in the law. Let your team know when you do so.
- (optional) Include a sign-off sheet for employees to acknowledge they've read and understood the contents.
Standout Employee Handbook Examples
Companies like Valve and Netflix are renowned for their innovative handbooks that reflect their unique cultures. While these are larger companies, they offer inspiration that can be tailored to your small business.
We can also recommend the Founder Library which has a wealth of resources on policies, guides and Better Wiki which will give you dozens of Handbook examples from fellow startups and small companies.
Building the Core of Your Employee Handbook
What Policies Should My Employee Handbook Include?
Your employee handbook should comprise a range of essential policies, all of which should align with UK employment law. Let's delve into each one:
Employment Basics: This section should outline the fundamental aspects of employment within your company. Include terms and conditions of employment, job descriptions, probationary periods, and contractual agreements. Clearly define your company's approach to equal opportunities, diversity, and inclusion.
Workplace Policies: Highlight how your business functions daily. Key aspects include health and safety regulations, data protection and privacy guidelines, internet and email usage, and procedures for handling personal grievances and disciplinary actions.
Code of Conduct: Here, you set the behavioural standards for your company. Specify acceptable workplace behaviour, dress codes, punctuality and attendance requirements. Discuss your company's stance on harassment, bullying, and conflict resolution.
Compensation and Development Policies: Outline your approach to salaries, raises, bonuses, and performance reviews. Discuss opportunities for professional development, including training and advancement.
Benefits and Perks: Use this section to detail the extra incentives you offer, like private healthcare, pension schemes, or flexible working options. Be clear about eligibility and conditions.
Working Hours, PTO and Vacation: Provide clarity on regular working hours, rest breaks, and overtime rules. Explain how holiday time, sick leave, maternity and paternity leave, and any other types of leave are administered.
Policies on Employee Resignation and Termination: Detail the procedures for voluntary resignation and the grounds for termination or redundancy. Clearly state the process for notice periods, final pay, and exit interviews.
By covering each of these key areas, you'll create a robust and comprehensive employee handbook that provides a clear framework for your business and your employees.
Frequently Asked Questions (FAQs) About Employee Handbooks
How often should I update my employee handbook?
Update your employee handbook at least annually, or whenever there's a significant change in your company or in employment law.
Should my employee handbook be detailed or concise?
Balance is key. Your handbook should be detailed enough to cover key policies and procedures, but concise enough to be easily understood by employees.
What are some common mistakes in creating employee handbooks?
Common mistakes include not customizing a template to fit your business, using legal or technical jargon, not updating it regularly, and not getting employees to acknowledge receipt and understanding of the handbook.
How can I make sure my staff actually reads the handbook?
Make it engaging and readable. Use a friendly, conversational tone. Include visuals or infographics where appropriate. Also, make it accessible - both digitally and in print.
Conclusion: Employee Handbooks as a Strategic Business Tool
A well-designed employee handbook is more than just a list of rules. It's a powerful tool that can drive your business's culture, communication, and legal compliance. Make the investment of time and resources to get it right, and it will pay dividends in the long run.
Related articles:
- The Essentials of Holiday Pay in the UK: A Quick Guide
- What does pro-rata mean and how to calculate it?
- Statutory Sick Pay (SSP): Calculator & Facts
- Time Off In Lieu, Day In Lieu Explained: Legalities, Benefits and How They Work
