Importance of an Employee Handbook for an Organization

Devising an employee handbook may seem like a boring, daunting, and in some cases, an unnecessary task to many companies, however, having one curated can provide a multitude of benefits to an organization.

  • An employee handbook is an effective tool to clearly define and establish boundaries for employees. It sets forth rules and guidelines pertaining to workplace regulations, which serves as a reference point for employees, helping them to understand how to execute their jobs and carry themselves in the organization.

  • Employee handbooks also come in handy while communicating the dress codes to the employees. For instance, it may define that any outfit or attire other than formal dress is prohibited at the workplace, which can help in enforcing the company’s dress policy without having to create a separate circular or draft an E-mail every time a new employee joins the company.

  • An employee handbook may also include policies and procedures that can serve as a legal shield for employers, protecting them from potential liabilities. Using a well-structured and effective handbook, an employer can demonstrate that all necessary information was communicated to the employee, in case of a dispute.

  • Some courts consider employee handbooks as a binding contract, however, this may depend upon the circumstances and may vary from one case to another. Thus, it is always advisable to use services of a competent risk management company to devise an accurate and detailed handbook.

  • Employee handbooks can also provide information about an organization’s policy pertaining to leaves, holidays, working hours, overtime payments, and performance reviews. Moreover, it may also list the orientation and termination procedures.

  • In this digital world, data theft is one of the biggest issues facing many organizations. An employee handbook can allow organizations to list terms and conditions related to data management such as limiting the use of devices that can capture or store confidential data and other precautionary measures to keep their valuable data safe and protected.

There are an abundance of other benefits of an employee handbook, especially if it is formulated by a reputable risk management company. Not only does it cover the legal aspects and protects the company from potential lawsuits by publishing necessary information such as employee safety measures and procedures, but also saves valuable time for human resources as it reduces their responsibility to communicate different regulations and protocols that are already available in the handbook.

However, employee handbooks can also be used against the company if some issues are addressed vaguely or open to interpretation, thus again, it is highly recommended that a company must procure services of an experienced risk management company to mitigate these risks and at least reduce them to an acceptable level, if not eliminate them completely.

If you want to find out more about employee handbook or wish to find more risk management solutions, contact SIA Insurance Group by calling at (630) 325-4000.

Employee Handbook


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