Most larger businesses and organizations have sizeable human resources departments and use many resources to ensure they have the best employment practices in place. But this important piece of the successful business puzzle is often overlooked by small organizations with limited resources. Owners and operators of small businesses may see their employees as close friends or even family. As a result, they might believe critical human resources tools like an employee handbook or performance reviews aren’t necessary. But both employee handbooks and regular performance reviews are essential devices for building a resilient, people-centered workplace and protecting their organization from employment claims and lawsuits.
What is an employee handbook?
An employee handbook is a guide to company policies and procedures that employees can reference. It can contain company mission statements and core values. It typically also includes:
- Workplace rules and expectations
- Information on employee benefits
- Safety policies
- Complaint procedures
Employee handbooks should be reviewed and updated regularly as organizations grow and change. All employees should sign an acknowledgement that they’ve been given and have read the employee handbook.
The Society for Human Resources Management, or SHRM, details the steps for creating an employee handbook in this useful article. Important steps include creating an outline, summarizing important employment policies, and having the entire handbook reviewed by legal counsel. Aside from review by legal counsel, the drafting of an employee handbook is something that any employer can do themselves.
While it may seem like an unnecessary task for a smaller organization, it only takes one employee being treated poorly for a claim or lawsuit to cost a business a significant amount, financially and in terms of their reputation. By taking the time to put together a quality employee handbook, some of these issues can be avoided.
Why employee performance reviews matter
Just as handbooks provide structure, employee reviews support performance, development, and workplace morale. No matter what the industry, employee evaluations are vital, because they:
Measure and reward performance.
Reviews help employees stay focused and aligned with company goals. As business strategies shift over time, reviews offer space to reassess priorities and adjust.
Promote employee development.
Reviews are a good time to prioritize developmental needs, such as skills training, mentorships, or special projects. Employees can feel more valued if their jobs are aligned with future growth and opportunities.
Give employees a voice.
Not only is this a time for managers to speak, but employees should also be encouraged to provide honest feedback. Ask what part of their job makes them the happiest and if there’s anything that needs improvement.
Build trust in the workplace.
Managers don’t need to be best friends with employees, but they should get to know their team members to build relationships with them. People want to be treated as people, not numbers.
Some employees may need much more frequent feedback and recognition than a yearly review. Many companies are moving away from the standard annual process to a more continuous feedback model.
Employee handbooks and employee reviews are both important tools that help guide expectations, strengthen company culture, and minimize risk. While it’s easy for small businesses to overlook these practices, they play a crucial role in creating a transparent, communicative, and productive workplace.
