25 May 2009

Rules of the Game

Imagine playing a game with four people and each person has a different set of rules to the game. How do you know if you are winning or losing? This is the premise that many businesses are operating on because they don't have a set of rules for their employees or an employee handbook. An employee handbook is your rule book for workplace behavior, policies and procedures. Although you may assume that everyone knows the rules and are playing by the same rules, how do you really know?

Let's say you hire two employees and they start work on the same day. You have an orientation and give them the exact same rules at the exact same time. Two weeks later, one employee begins breaking one of the rules while the other is following procedure. You chastise the 'bad' employee for their behavior and they respond, “I didn't know I wasn't supposed to do that.” Without proper documentation that those rules were explained, the employer has no evidence that the employee is acting improperly – even if employee #2 is doing all of the right things.

Every employer that maintains employees should have an employee manual that spells out how they want their employee's to behave and what the employee can expect from their work environment. These guidelines should be clearly spelled out and can not show bias in any form. Your manual should include, at least, the following sections:

  • Attendance policy – when do you expect your employees to come to work, when are they allowed breaks and at what time can they leave?
  • Use of company property – will you allow employees to check personal email during down time or is personal use of computers prohibited?
  • Confidentiality - are your employees privy to confidential client information and if so what happens if they betray that confidentiality?
  • Dress code – what image do you want your employees to portray? Will you have a business casual dress code or will they be allowed to wear what they want? Will they be allowed to wear denim on Fridays or required to wear a suit and tie everyday?
  • Safety and accident rules – how will you prevent workplace accidents? Are there any rules that should be followed to decrease your liability and the probability of an accident occurring?
  • Substance abuse – what will be your policy regarding employees using illegal substance? Will you have a zero tolerance policy which means they can not use illegal substances under any circumstance thus requiring random drug testing or will you only require that they not use illegal substances while working?
  • Sexual harassment – it is imperative that your company have a sexual harassment policy that lets everyone know that this behavior will not be tolerated and that spells out disciplinary action for violating the policy.
  • Performance reviews - all employees should receive a performance review at least once per year (preferably quarterly) so that they know how you feel about their work. Each person should be judged using the same criteria which should be spelled out in advance so that they know what your expectation is for their performance.

Additionally, employees want to know what benefits they can expect from their employer. Having these benefits in writing ensures the employees that everyone is being treated fairly and equally. The following sections are the most popular guidelines for compensation and benefits:

  • Payroll – everyone wants to know when and how they will be getting paid (weekly, bi-weekly, monthly, etc). Also, will you require direct deposit or will they be able to pick up their checks at a certain location at a specific time?
  • Holidays – you should establish at the beginning of each calendar year which holidays your business will be closed for and which holidays your employee will be compensated.
  • Vacation/Sick Leave – you should decide if you will allow your employees to have paid vacations and how they will accrue sick time off. How do they earn time off – after one year, six months, etc? You must also consider policies for funeral leave, jury duty, military service and the family and medical leave.

It can be a pain to put this manual together because it requires time and effort (something many of us don't have much of) but ensuring your employees are all playing by the same rules is a smart way to mind your business and reduce your legal liability.

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