Employee Handbook How-To

Even though they may be unaware of the benefits of having one, many businesss owners realize they should have an employee handbook. Creating one can be simple, and when done properly, save you a lot of trouble.

“An employee handbook will not make you more money, but it will eliminate a lot of headaches,” says Bob Clements of Bob Clements International. “Most small business owners dislike dealing with employee issues. A handbook helps.”

Why a Handbook is Helpful

As Clements explains it, many business owners expect their employees to think the same way they do about running a business, and offer little instruction.

“The reality is that if our employees thought like us they would have their own businesses,” says Clements. “So with an employee handbook we have the ability to clearly define, communicate and standardize what we as owners expect of our employees.”

An employee handbook also answers questions about things such as time off, dress codes, acceptable behavior and discipline policies, before they are even asked. If it is thorough enough, it isn’t necessary to have a separate handbook for each department.

“Dealers should make sure that they have job descriptions and expectations for each position in the dealership, which feed into the policies outlined in the employee handbook,” says Clements.

Implementation & Creation

Creating an employee handbook is a smart step. Once it is completed, it can only help you, your business and employees if it is used properly.

“Each new employee should be given the handbook and expected to sign off on each page to show they have read and understand what the expectations of the dealership are,” says Clements. “Each year the dealership should review the handbook, make changes based upon behavior they want to encourage or change, and update the handbook accordingly.”

After the initial training, each year employees should be presented with the new or revised handbook. “At the time the employees are given the updated handbook, they should be asked to sign off on the changes, and are then held accountable to standards outlined in the handbook,” Clements explains further.

Handbook Contents

Below is a suggested outline for an employee handbook. It can be expanded upon or simplified to better reflect the goals of your dealership.

1. Brief Welcome

2. Company History & Mission Statement

3. Company Overview

In the company overview, there should be an explanation for what the handbook is designed to do and what actions will be taken if the guidelines aren’t followed.

Outline what the employee can expect of the company and what the company in turn expects from them. Lastly, explain that the customers are the root of any business success and should be treated as such.

- Introduction
- At Will Employment
- Wavier of Breach
- What You Can Expect
- What is Expected of You
- Customer Relations

4. Employment Policies

The Employment Policies section explains how employee conduct should mirror the beliefs of the company. Explanations of suitable and unsuitable behavior and appearance are outlined, as well as consequences.

- Code of Ethics
- Employee Non-Compete & Confidentiality
- Outside Employment
- Company Vehicles and Property
- Personal Appearance
- Reporting Concerns / Complaints / Grievances
- Progressive Discipline
- Sexual and Other Unlawful Harassment

5. Hiring & Terminations

Explain employment laws and agreements as well as specific job descriptions in this section. Doing a thorough job of explaining job duties, schedules and attendance policies will leave little room for dispute when and employee underperforms.