Do You Really Need an Employee Handbook?
(Yes, and Here’s Why)
Your business is small, but you want to see growth, and it’s starting to happen. Your team is expanding, even if it’s just by one or two people. Suddenly, questions start popping up: “Is there a PTO policy? Can we work remotely? Do I clock in? Is there a dress code?”
That’s when an employee handbook swoops in to save the day.
I’m sure you’re thinking: “Employee handbook? BLECK. Sounds corporate and boring and I don’t need it.”
FALSE.
Employee handbooks are freeing for you and your business. They’re not just for the “big dogs” with 500+ employees and strict policies. A handbook is actually one of the most valuable and foundational tools a small business can create. Let me explain why.
What Is an Employee Handbook?
An employee handbook is a simple yet powerful communication tool between you and your team. It’s a reference guide of expectations for how you want your business to run. It can include your company’s history, mission, and values, but also the important stuff like benefits, guidelines, and workplace policies.
A policy is just a written statement of an employer’s standards and objectives for employee-related matters or employee activities. It also provides basic protections for a business owner if ever any discrimination or unfair treatment claims arise. [1] By putting them in writing, you create consistency, fairness, and protection for both your team and your business. If questions or even legal issues ever come up, you’ve already documented what’s expected.
Why Small Businesses Need a Handbook
It’s easy to think only the big corporations need or require an employee handbook to be available to their staff. But even for small teams, it’s a critical tool for success. Here’s why:
Clear Expectations → Everyone knows what to expect when you have it clearly written out for reference.
Consistency & Fairness → Reduces favoritism and confusion. No more case-by-case where you forget what you decided every time.
Basic Protections → Covers legal basics and reduces risks of disputes. What a relief!
Defined Culture → Lets you showcase your values, the way you do business, and where you want it to go.
Even if you have fewer than 10 employees, a handbook provides clarity and stability as you grow.
What’s Included in a Handbook?
The best part: you can (and should) tailor it to your business. A high level overview of what you can include in your handbook could look like this:
Welcome to Our Company
Culture, Mission, Vision, Values
Key Employment Policies (harassment, EEOC, etc.)
Employment Expectations (work hours, pay, overtime)
Workplace Guidelines (safety, dress code, emergencies)
Time Off Policies (PTO, holidays, leave)
Benefits & Perks (like insurance, discounts, etc.)
Employee Acknowledgements
As a SHRM-CP, I recommend always having legal counsel review your handbook to make sure it’s compliant with state and federal laws.
The Benefits of a Handbook
Establishing an employee handbook is the foundation for long-term team growth. It’s the starting point for really sustaining your team. It will be an incredible way to establish trust and transparency, which reduces confusion and all those repetitive questions you get. When you start hiring more employees, an employee handbook is an easy way to onboard and train quickly with the basic information about the company they’re now working for.
Bottom line: it saves you time, reduces stress, and keeps your business running smoothly.
How Do I Get an Employee Handbook Started?
Easy! You can start with a basic template. Start with the core policies for your business and its culture and procedures. We can do the big policies later. When you’re writing out a welcome introduction or writing about the company culture, just keep it simple and you! Use the voice dictation and talk out what you would say if you’re welcoming a new employee and explaining what it’s like to work at your company. When you’re ready, I’d recommend getting expert HR support (hi, that’s me! 👋) to make sure everything is functional and compliant (like helping get those big policies in there), before you run it by your legal counsel for final approval.
I’ve Got Your Back!
An employee handbook can be a daunting task and may even seem pointless - especially if you’re a small business owner. However, it’s one of the best investments you’ll make. It’s a road map for your business operations and - I’ll repeat myself here - a kick-butt foundational tool for long term growth.
If you don’t have a handbook in place yet or your current handbook needs a little love, I’d love to help you build one that feels perfect for your business and team.
✨ Your first 1-hour consultation with me is FREE. Schedule yours today and let’s get started!
References:
[1] SHRM. (2025, January 15). Employee Handbooks. https://www.shrm.org/business-solutions/partner-products/employee-handbooks
Feature Photo by Enrico Mantegazza on Unsplash