An Effective Employee Handbook



Why do you need an effective employee handbook?

Because the average employment legal settlement is in the neighborhood of $100K, to well over $1 Million! Can your small business sustain this type of loss for something that can be easily avoided?















The entire purpose of an effective employee handbook is to inform your employee staff of your employment policies and what the consequences of violating them would be! It's that simple.


This is exactly what they will do in the workplace also…


Think of an employee handbook as a traffic speed limit sign. If you are traveling on a highway that does not have a speed limit posted, what do you suspect people will do? I am pretty certain a number of them will go as fast as they feel they can! This is exactly what they will do in the workplace also. They will interpret what they think is allowed! This is a formula of disaster.

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progressive discipline process


Complete the Open Blocks to Prepare an Employee Written Warning Notice



An effective handbook will lay out your employment rules/policies, which will include your progressive disciplinary program. A progressive disciplinary program is a policy that defines what will happen when an employee violates your employment rules/policies. As an example if you have a policy against an unexcused tardy, your progressive disciplinary program may state that the employee will be subject to disciplinary action if they violate any of the employment policies. Along with this you will outline how the progressive disciplinary program will work.

an effective employee handbook




Finally, if they violate another employment policy you would seriously…


As an example that is normally included in an effective employee handbook would be to start with the least amount of discipline and progress toward termination, if necessary. So too put this into perspective the first time someone violate a policy they may receive an employee counseling. The second time they may receive a written warning. The third they may receive another written warning. Finally, if they violate another employment policy you would seriously consider termination. This would all be within a twelve month rolling calendar period.

good leadership skills
Good Leadership Skills For Life – Presidential Quotes:

“Power always thinks that it is doing God’s service when in fact it is violating all his laws!”

President John Adams – Served 1797 to 1801




Now an effective handbook should also define those employment violations that may be cause for immediate termination. Violations such as stealing, fighting, gross insubordination, intoxication, willful destruction of company property, falsifying a time card, etc. Some people may refer to these as deadly sins.


Things such as overtime pay, vacation and sick leave policies, a definition of full time and part time employee


Other items you should see in an effective employee handbook would be things such as overtime pay, vacation and sick leave policies, a definition of full time and part time employee, an employee at will policy, etc. Although these types of policies are not related to disciplinary action, they certainly are important to the employee. In addition, if there is ever a question about how much vacation or sick pay an employee earns, these policies will answer their questions.

Although there is much more that can go into an effective employee handbook this should give you a good idea to get started. The important thing is to make sure you have one.




Good Luck and May God Bless You!

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