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15 Common Employee Handbook Mistakes To Avoid

Forbes Human Resources Council

There’s a reason why the employee handbook is one of the first documents given to new hires. It not only outlines essential information regarding processes and policies, but it also communicates company culture and core values.

As such, HR professionals must put extra care into creating, distributing and maintaining this crucial document. Your employees rely on it as their guide to working for your company, so it's important to get it right.

Below, the members of Forbes Human Resources Council share 15 common mistakes HR teams make when developing their employee handbooks and what they should do instead.

1. Not Having A Process For Updating It

A common mistake is not having a process in place to keep the employee book current or only updating it by a certain time interval. Implement changes as they occur and distribute the updated version promptly to employees. Another mistake is making it just about compliance. Instead, share the company’s story and its history, describe the culture and how it supports diversity, equity and inclusion. - Tobin Cookman, ON Semiconductor

2. Using It To Control Outcomes

Too many HR teams create a policy manual to control outcomes of the least able employees. HR teams that can't communicate culture and core values as the clear guides for action lose the majority who just need a compass to allow their diverse strengths to thrive. Create core value storybooks that inspire action. Provide basic policies after they are inspired to act without them. - David Alsop, Ultradent Products, Inc.


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3. Making Them Too Complex For Business Needs

Handbooks should only have in them what they need to have in them. Small or early-stage companies need so much less than the standard, template handbooks you buy on the internet. That level of detail can get a young company into serious trouble for promising adherence to rules that don't apply and/or the company can't honor. - Elizabeth Roberts, eGenesis, Inc.

4. Missing The Intent

Compliance is always the key when it comes to handbooks, so adding a dedicated person to oversee all updates/changes at the federal/state/local level will help mitigate the mistakes. I see a lot of teams miss the intent of the handbook. While preparing one, I would encourage teams to not forget that the handbook tells the employees what the employer cares about. - Greg Henderson, Whirks

5. Simply Creating A List Of Company Policies

An employee handbook provides an introduction of your company to new hires, so use it to communicate your mission and values. It should be more than just an overview of company policies. Remember to update your handbook regularly. The workplace is continually evolving and what’s relevant now may not be in a year’s time. Ask employees what they think and make improvements based on feedback. - Kim Pope, WilsonHCG

6. Excluding Manager Feedback

One mistake that HR teams make when developing the employee handbook is the exclusion of feedback across management levels. The best way to avoid this miscommunication would be to get input from leadership at the beginning of the process, followed by garnering feedback from managers before distributing it to the greater team. - Leigh Yanocha, Knopman Marks Financial Training

7. Not Notifying Employees Of Changes

Handbooks are living documents that should be regularly reviewed and updated to maintain compliance with all applicable laws and regulations. As HR changes the handbook, be sure employees are notified and have access to the most current version. Be sure supervisors know and follow the handbook. - Courtney Pace, FedEx Employees Credit Assoc.

8. Focusing On Acknowledgment Of Receipt

It's easy to issue a new policy or handbook, but we must communicate what changed from the previous version as most employees will not go back and re-read the entire document. It's also important to explain for understanding, not just acknowledgment. - Christina Hobbs, American Queen Steamboat Company

9. Assuming Everyone Will Read It

A common mistake is assuming that everyone will actually read it, even if they sign something to say they have! Remembering that the employee handbook probably isn’t the best way to ensure you’ve landed all the key information you’ve worked so hard to include in it is humbling, but helpful as a reminder that you will need to consider other ways of communicating important policies. - Philip Burgess, C Space

10. Not Aligning The Handbook To Company Values

Handbooks that don't truly align with company values will be doomed to fail. Handbooks are more than just details; they show employees how things should be done. If done right, they can set the tone for company culture. Making sure that the company values shine through the factual information is crucial. - Karla Reffold, Orpheus Cyber

11. Setting It And Forgetting It

Many HR teams make the mistake of setting it and forgetting it. They create a handbook of great policies they set on the website and check for continued legal compliance, but they forget to check for company practice. In reality, the handbook may not align with organizational practices. This leads to employee mistrust. Therefore, it is critical that HR aligns the handbook with actual practice. - Bridgette Wilder, Wilder HR Management & EEO Consulting

12. Relying On A Template

Although googling for handbook templates can lead to helpful results, it is not the best for creating a completely compliant and engaging handbook. Some states even have cities with separate laws that are not included in templates online. Talk with other HR professionals or lawyers. Look at HR handbook resources or government websites for help when needing to update or create a handbook. - Kelly Loudermilk, BuildHR, Inc.

13. Not Having A Renewal Or Review System In Place

Two things come to mind: First, not putting a proper renewal system in place. Many handbooks become obsolete because no one updates them regularly. Second, not reviewing or assessing any resistance in the team before final deployment. When concerns are addressed, deployment runs smoothly. - Mofoluwaso Ilevbare, Procter and Gamble

14. Being Too Vague

Employers can be vague in benefit time-off accruals. I have found a lot of companies are not truly versed on what they are required to offer and how it applies to their practices. For example, several states (and localities) have regulations on whether employers must provide sick time and whether vacation time is a cash benefit upon termination. - Nakisha Griffin, Virtual Enterprise Architects

15. Only Discussing It During Onboarding

One mistake is to only discuss the employee handbook at onboarding and when changes are made. An employee handbook describes "the way we work around here," including values, code of conduct, policies and procedures. Each day, The Ritz-Carlton discusses one of its 12 service values during its 10-minute "lineup." Such a practice keeps the employee handbook top of mind to guide excellence. - Brett Wells, Perceptyx

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