Don't Minimize the Importance of the Employee Manual

By Michele Blandino

Many entrepreneurs, particularly those who have spent any amount of time in the corporate environment, say that one of the biggest appeals of being their own boss is the ability to steer clear of the bureaucracy and rules that encumber most large firms. And so, as their business grows and additional employees join the ranks, the business owner may minimize the importance of introducing an employee manual and choose instead to foster an informal environment in which few, if any, rules are in place.

On the surface, this appears to be the perfect place to work; after all, an employer that has few or no rules and total flexibility is usually highly coveted, and many people would value the opportunity to work in that type of environment. Unfortunately, the absence of at least some rules can actually cause problems – for both the employer and the employee.

A Short Case Study

To illustrate, consider the case of a small business office that employs 5 people and has no employee manual. Employees in that office are expected to work 8 hours a day and are allowed a 60 minute lunch break. Typically, employees come to work at 8:00 a.m. and leave at 5:00, taking their lunch either at noon or at 1:00.

One employee in that office arrives precisely at 8:00 each morning, but rather than going to her desk and beginning her work day, makes a stop in the kitchen to make a cup of tea, put her lunch in the refrigerator and talk with her co-workers. She finally arrives at her desk around 8:20, and spends the next 15 minutes browsing the Internet while sipping her tea. At noon, she heads out to run some errands during her lunch hour, returning at 1:10 p.m. Because she spent her lunch hour running errands, she hasn’t yet eaten lunch, so she settles down in the kitchen to eat, finally returning to her desk at 1:40 p.m. At 4:45 p.m., she packs up her desk, powers down her computer and at 4:55 p.m., heads out the door. When all is said and done, this employee typically puts in about 90 minutes a day less than her co-workers.

The Effect on the Employer

This happens virtually every day and even though the employee’s co-workers notice and are becoming increasingly frustrated, there is little that can be done to remedy the situation because the employer opted to not introduce an employee manual. Without the presence of a written attendance policy, the employer is essentially limited to simply encouraging the employee to stick more closely to the established hours. Warnings, threats of disciplinary action and other forms of admonishment are off-limits because should this employee take legal action against the employer, the absence of a set of written rules regarding attendance will only serve to support the employee’s case.

In the end, not only does the employer lose nearly 90 minutes of productivity each day, they will begin to lose the respect of their other employees and, in some cases, find their other employees falling into the same pattern.

How a Manual Can Help

If this employer had a manual in place that addresses the company’s attendance policies, chances are, this situation wouldn’t have been allowed to perpetuate itself. As in any human resource related issue, as soon as the employer recognizes that a problem is beginning to develop, the presence of a manual gives the employer the latitude to take the employee aside and review the company’s policy – in this case, attendance. And, if the situation doesn’t improve, the presence of the manual will allow the employer to take any remedial steps needed to resolve the problem.

How to Get Started

Fortunately, it is not overly difficult to develop an employee manual. While there are many services available that will allow you to purchase an already-written handbook, such services will charge several hundred dollars for a boilerplate handbook for which you will have to spend additional money to be reviewed by your legal counsel. Instead, it’s best to develop your own handbook so that you can be assured that the manual properly reflects the type of work environment you want foster.

Sites such as HR-Guide contain links to sample employee handbooks that will give you an idea of the scope of topics you should cover and the depth of detail that should be included.

When you are finished writing your handbook, you should have it reviewed by legal counsel to ensure there is nothing in the book that can bring you trouble down the road. While the cost involved of having this done may seem exorbitant today, keep in mind that it is only a fraction of what legal proceedings may cost.