7 employee handbook benefits and why your business needs one

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6 mins
7 employee handbook benefits and why your business needs one
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Mike Bandar
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    Every small or large business organization improvises some rules and policies to keep everything running smoothly. For this purpose, they may need a resource to enforce their workplace culture, vision, and mission among their employees. An employee handbook is a significant communication tool between employers and employees. It clearly reflects your company's culture to the existing or new employees.

    As a business leader, you can easily define employee guidelines and procedures in the manual. It paints a vivid picture of employment conditions for the staff. In order to make max out of it, you must be aware of key employee handbook benefits. Without further ado, let’s dive into the topic; 

    This article will cover the following;

    • Purpose of Employee Handbook
    • Benefits of Employee Handbook
    • Help to formalize policies and expectations
    • Clear Explanation of company culture
    • Promotes Employee equality and performance
    • Improves the onboarding
    • Manifests the company benefits
    • Ensures legal compliance
    • Promotes a healthy work environment

    Purpose of Employee Handbook

    Research shows that 87% of small-sized businesses have an employee handbook. Why do most companies prefer to have a directory? The optimal purpose of an employee handbook is to provide an outline of your business procedures and policies to your staff. It reduces the uncertainty among the employees and different departments and clearly communicates what is expected from them.

    Additionally, it promotes a healthy workplace culture and affirms the company's values. The handbook also integrates legal obligations and protects your business from employee lawsuits.

    Benefits of Employee Handbook

    Let's discuss the top 7 employee handbook benefits. 

    Help to formalize policies and expectations

    Suppose you want to assign a big project to your employees. You want the employees to accomplish their tasks efficiently. Is it possible without proper guidelines? Of course not. 

    Research shows that employees who have clarity about their work roles are 53% more efficient than those who have ambiguity at work. An employee handbook provides you with an opportunity to organize your expectations from employees in a comprehensive way. You make them familiar with the company procedures, and they have to follow them accordingly.

    Moreover, there is a clear explanation of company policies regarding appropriate dress codes, attendance expectations, time off procedures, employee benefits, and more. So, these manuals better showcase what the organization expects from the employees.

    Clear Explanation of company culture

    One of the top benefits of employee handbook is that it offers you a chance to clearly communicate your company culture to others. Your employee manual integrates your organization's purpose and provides detailed information about the mission, vision, and goals.

    Let's suppose you want to hire new employees who will embrace your company values. 

    Do you know what applicants look for in an organization? 

    Research shows that 46% of job seekers believe that company culture is an important factor when deciding on a company. So, if you provide them with clarity about your workplace culture, there are more chances that you can attract a pool of candidates that will help you fulfill your vision in the near future.

    Promotes Employee equality and performance

    An employee handbook defines the rules and regulations that are applicable to all employees equally. It states that all the staff members need to comply with these conditions. Thus, the employee handbook induces workplace equality.

    HBR study shows that a fair workplace environment improves employee performance by up to 26% and retention by up to 27%. So, when you ensure your employees that you make all the employees compliant with the workplace rules equally. They tend to perform their jobs more effectively. Therefore, an employee handbook fosters employee performance.

    Improves the onboarding

    When you hire new employees for a job position, you need to orient them properly to make them familiarize with your company vision and specific goals. Employee handbook benefits the employers to do this job efficiently. A written manual contains all the details about the company for which the new hires are looking.

    According to the survey, 86% of the respondents have an employee handbook. They are a valuable tool that improves the onboarding process of new employees in the organization. The employees who have just started working need a comprehensive guide. So, you can guide them through these manuals.

    Manifests the company benefits

    How can you showcase your company’s offerings? You can document all the benefits specific to different job positions in an employee handbook. A huge range of benefit packages attracts more employees. Research shows that 69% of employees report that they prefer a job that offers better benefits over others.

    So, you can list the company perks like health insurance, paid leaves, training programs, free workshops, appreciation programs, and more in your employee handbook.

    Ensures legal compliance

    The employee handbook benefits businesses by providing a legal shield. It ensures that your company complies with the federal and state laws related to employment. As the handbook integrates a clear definition of policies and employee relations, it protects your company from employee lawsuits. 50% of the respondents reported that they have handbooks with a legal company’s protective approach.

    Employees mostly complain about unfair treatment or a lack of clarity about workplace procedures. In the handbook, you ensure legal compliance with all the labor obligations to minimize disputes.

    Promotes a healthy work environment

    Employee handbook benefits include that it promotes a healthy working environment for the staff. How? The employee manual integrates policies related to personal security, anti-harassment, appreciation, benefits, and more. When employees feel that they are working in a safe environment, they perform their duties more effectively.

    So, the employee handbook plays a significant role in fostering a supportive workplace for the staff.


    In short, employee handbook benefits have taken the business marketplace by storm. The purpose of an employee manual is to set out clear policies, rules, and expectations for the employees. It is a significant communication tool that improves employee relationships. 

    Moreover, the employee handbook also ameliorates the onboarding process and makes the employees better understand the company culture. Designing employee handbooks can be a daunting task. Waybook facilitates you to make use of custom-made templates covering every major department of any organization. Just name it and have it. Customize it according to your business and enjoy unending employee handbook benefits. 

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