Put It In Writing! Here's Why Employee Handbooks are Necessary for Improving Employee Retention and More

Put It In Writing! Here's Why Employee Handbooks are Necessary for Improving Employee Retention and More

Company policies create a better workplace environment, improve retention, and streamline internal processes. The need for organization within a business should never be underestimated, especially when supporting employees, management, and the general culture and workflow. 

The most organized people are 397% more likely to report success. Imagine what a team of organized people could do! 

Companies need to have an employee handbook of policies, procedures, expectations, consequences, and clear communication about these processes. Without standards for attendance, safety, policies, etc. — efficiency, teamwork, morale, and culture can diminish. 

Here are the benefits of a company handbook and at least 13 reasons why a company policy manual is essential to the success of your business.  

13 Reasons to Have an Employee Handbook

1. Solidify your Company Culture, Mission, and Values

Company culture is one of the most important components of business nowadays. Not only does it increase engagement and productivity, but it ensures that only compatible job seekers are hired on. This, in turn, reduces employee turnover and improves employee retention. An employee handbook makes sure everyone is on the same page about culture, mission, and values.

According to recent research, a shocking 94% of entrepreneurs and 88% of job seekers say that success requires a healthy workplace culture. Moreover, the report found that at least 15% of people looking for a new job turn it down because of poor company culture, and another 86% will avoid that company for their reputation.

2. An Intro to your Company and what is Important

An employee handbook also ensures everyone has a proper introduction to what matters most to your company and what they can expect from it. New hires informed about what is expected of them have a higher chance of succeeding in their positions. This includes what is most important to the company because they'll be one of the ones representing these components for your brand.

3. Employees can find a Sense of Belonging and Purpose when Understanding your Mission and Values

Just as company culture will guide your hiring process, your missions and values will make new hires feel more welcome. When you hire based on capability with your current work environment — and the new hire gets a breakdown of mission and values that align with their own — both parties feel more confident about the decision. This will strengthen bonds and loyalty, leading to better retention.

4. Communicate Clear Expectations for Management and Employees

There shouldn't be any misunderstanding of what is expected of managers and employees. When everyone is fully aware of what they should be doing, production will go up, and satisfaction will follow. Often, team members fail to live up to expectations because they are unclear. Likewise, managers often expect too much or too little because there aren't any standardized responsibilities.

5. Employees Understand their Responsibilities

Moreover, businesses flourish most in environments where everyone knows their role and responsibilities. This allows everyone to participate to the best of their ability, with no confusion about who should do what. Written out obligations also reduce tension, arguments, and confusion, especially in cases where a certain responsibility isn't clearly defined in any roles.

In turn, you'll also witness more teamwork because instead of fighting over who isn't doing what, employees will be more inclined to help where needed if an employee is struggling.

6. Let Employees Know about Standard Procedures like who to Reach out to for Scheduling, etc.

Despite Human Resources being an important component of business for employees, not many employees know how to take advantage of their benefits. They also often don't know how to do simple tasks like requesting time off, fixing their schedule, discussing pay, and more. This could lead to more time looking for how to do something over getting more work done. Clearly define where to go and who to talk to when employees have any questions or concerns.

7. Safety, Timekeeping, Reporting

Other important components of business to have clearly defined are safety, timekeeping, and reporting. This way, your employees know exactly what to do when tracking their time and who to contact if there are any mistakes. There should also be clear preventative measures to take to keep staff safe, including steps that should be taken if something dangerous happens.

8. Social Media Policies

To protect the company and keep production up, social media policies typically include:

  • Refraining from Social Media Use at Work
  • Not Using Social Media During Work-Time for your “Side Hustle”
  • Refraining from Discriminatory or Harassing Posts, etc.

9. Explain what Employees can Expect from Leadership and the Company

This section will include the following and allow managers to live up to their roles with a clear understanding of their responsibilities as a leader for your company:

  • Objectives
  • Leadership Styles
  • Management Best Practices

10. Clearly Define Company Policies

Policies are in place to ensure everyone understands how business is expected to operate and ensures everyone is accountable for their actions. Some of the most important policies include:

  • Conduct
  • Behavior
  • Safety
  • Attendance
  • Pay

11. Managers can Refer to the Handbook when Making Decisions

Informed decision-making will always be more successful than its counterpart. Having a manual to guide all decisions, big and small, will allow your managers to easily access the information they need to reach the best conclusions for your company.

12. Everyone is on the same Page with Benefits and Eligibility

List all the benefits you offer. Employees need to know what they are entitled to. This includes having clearly stated eligibility requirements for important benefits such as:

  • 401k 
  • Sick Time 
  • Health Insurance, etc.

13. Disclose State and Federal Laws that Pertain to your Company

Your company needs to comply with state and federal laws, and having these laws disclosed in the employee handbook will ensure that you are. This will help you defend against potential claims, inform everyone how they are protected under the law, and tell employees what they are obligated to do.

The Benefits of Employee Handbooks

When establishing employee policies and procedures, you set your staff up for success. In turn, you also enjoy the following benefits and more:

  • Orientation for New Employees
  • Reduces Confusion
  • Keeps all Employees and Management on the same Page
  • Provides Guidance for Employees and Management
  • Provides Safety Guidelines
  • Fulfills Legal Requirements

Create Employee Handbooks with a PEO Partner

Did you know that recent reports found that the overall employee turnover rate is as high as 57.3%? This is because employee retention is difficult to sustain. Providing your employees with a clearly defined and easily understood employee handbook can make all the difference. Even better, partner with a PEO like PRO Resources for extra guidance.

Contact us today for more insight into how we can help you create the right company policy manual for improving employee retention.