Employee Life Cycle

The Importance of an Employee Handbook for Small and medium-sized businesses



“Everyone talks about building a relationship with your customer. I think you build one with your employees first.”– Angela Ahrendts

The giddy feeling of nervousness and excitement is something that every new employee goes through at the time when they join a new organization. If one is looking for diversity under one roof, they are sure to find it in any running business operation. Different people bring different talents and skills to the table. When there is so much diversity, how else is it possible for organizations to bring them on the same page?


The answer to this is by setting the correct expectations and bringing everyone at par with the help of a well-drafted employee handbook. Going by the quote that I have stated, starting on the right foot to strengthen an employer-employee bond is very important and is what nurtures a strong relationship in the long run. And, in order to do so, an employee handbook is something that can get you started on the right track.


In this blog, we will take a closer look at how an employee handbook can help set a clear outline of all the company policies and can also help in shielding your company from any legal trouble. Let us understand how an employee handbook can help small and medium-sized businesses establish that strong relationship right from the start.

Help set the right expectation settings in terms of culture, mission, and values: Each organization has a different culture, a different lifestyle, and different principles. To make sure every new employee gets a head start and understands the core working ethics, an employee handbook is the starter pack. It basically acts as a typed guide that can help you understand:

  1. How the business got to where it is
  2. What the company is passionate about
  3. How can someone new become a part of the same culture and principles?

With the employee handbook in place, each new member of the team can understand the very pulse of the company and can work according to the principles and the guidelines that are set aside.


Helps them to become productive faster: When all the criterias and their responsibilities are listed out in the handbook, it gives the new team member a clear idea of what is expected from them. Once the initial step is taken to educate them through the handbook about the rules and regulations and their obligations when it comes to job descriptions, it will be easier for them to get in the flow and work in a better and productive manner. The handbook clearly spells out all their general responsibilities when it comes to safety, timekeeping, and the regular reporting structure.


Educates the employees about the management and leadership team: Every organization has a different hierarchy that is followed along with all the details such as the core leadership team and how to approach them. An employee handbook is a starter guide for an employee to understand all the policies that are designed not only for the upkeep of the organization but for them as well.  All the employee rights like paid leaves and other benefits are also clearly highlighted in the employee handbook.


Ensures communication of all the key policies and rules: Righteous policies that can safeguard the interests of both the employer and employee is something that the employee handbook does first and foremost. Often issues and challenges occur when there is no clarity of the code of conduct and policies. Whatever an employee might face as a grievance needs to be handled and addressed in the employee handbook, so as to ensure their ease and comforts.


Highlights all the employee benefits that are offered: Annual appraisals, leave policy, health insurance, and bonus payments, all these are some of the benefits that employees look for when they join an organization. An employee has a better dedication to work when they know that they are being taken care of as well, which is why highlighting all the benefits that you offer them in the employee handbook, will give them a sense of security and well being.


Informs the employees who to approach for help: Having in place an employee handbook is basically ensuring that nothing goes wrong in the future. An employee handbook is a step by step guide to inform employees of who to approach if and when things go wrong. It protects the interest of both the parties which is an employer and the employee.


It is very essential to make sure that you have the employee handbook updated and in place. So, take a few extra steps to construct an employee handbook to ensure a longer and stronger employer-employee bond.


For more information and free consultation get in touch with our experts at info@emgage.work

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