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7 Things You Need To Know Before Creating An Employee Handbook

7 Things You Need To Know Before Creating An Employee Handbook

Starting your own business is a difficult venture. You have to take care of a plethora of things and even then success is never guaranteed. Only after you go through several trials and tribulations, and learn from your experiences will you finally be able to carve your name in the world of entrepreneurship. In this world, the one who perseveres is the one who survives.

Employees are the part and parcel of any company. Having employees on board is one thing; making them follow your lead is entirely another. The success of a company is engrained in the ability of the employers to manage their employees. Discipline, work ethic, professionalism and dedication are vital components of a well-run organization. All these requirements are encapsulated in an employee handbook that is generally unique to a company. An employee handbook guides all employees on how to behave and conduct themselves in the realm of an office space. Basically, it is a summary of the organization’s policies and regulations.

The following are some of the things you should know before you write an employee handbook. Mind you, these are just guidelines to help you with the writing process. Writing the perfect employee handbook is an art in itself. You cannot simply conjure an all-encompassing, well-written handbook out of thin air. In fact, it takes years of experience, effort and constantly updating yourself with the times to write the perfect one. As always, practice makes perfect.

1. Why do you need an employee handbook?

All companies have policies––formal or informal––that dictate the terms of employment and expectations from its employees. Having clearly defined policies in one document creates an easily accessible record for the company hierarchy.

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For new employees, you may use this handbook to easily introduce them to the company’s rules and regulations. With an employee handbook, you don’t need to run around telling everyone how to behave in the office.

2. A handbook can protect you in court.

Running a company is not easy work. There are a thousand things that can go wrong, and sooner or later, you might even have to be in a court battling a disgruntled ex-employee. Say, he files a case believing he didn’t deserve to get sacked –– you might have to take the blame for someone else’s wrongdoing.

The same laws may not be universally applicable, or there may be distinct laws based on the nature of your business. Having a hard copy of your company’s rules and regulations is. therefore, vital as everything you want to address will be established in writing. Further, if you do not have the policies deemed necessary by legislation, you could be prosecuted and fined.

3. “Must have” handbook provisions

There are many indispensable provisions that must be included in your handbook. Some of these are related to the well-being of the employees. Violence and harassment in the workplace are inexcusable and must be forbidden.

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A company must include an occupational health and safety policy. Human rights is another issue that has been in the spotlight for several years now. The latter two policies are absolutely necessary, especially in the construction industry.

4. “Good to have” and other handbook provisions

Your employee handbook can cover an extensive scope of policies that sometimes may include some unorthodox policies as well. They may be out-of-the-box, but addressing these policies may sometimes be crucial for the functioning of your company.

Say that two employees fall in love at work and start exhibiting public displays of affection much to the chagrin or amusement of other employees. This may affect the overall performance of the company and having a policy on such issues can firmly draw the line between work and personal life.

Privacy, computer and internet policy, work attendance, overtime, pregnancy, etc. are some other policies which may be instrumental to the company’s operation.

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5. Remember, it’s only a guide

Sometimes, an employee handbook may be misinterpreted as a contract statement. But unless you want it to be treated so, it is better to explicitly state at the outset that the handbook is not intended to be used as a contract document.

This is critical, like in the case of employment-at-will, which means that the boss can fire an employee at his will for any reason (except discrimination or other exceptions). Every now and then, you might want to exercise that power to let people off whenever you want.

But, if your handbook specifically lists reasons for termination, without proper disclaimers, these may be considered as the ONLY legal base for termination, if the handbook is considered a contract.

6. Communicating your employee handbook

As mentioned above, a handbook can help defend your company in a court case. But if an employee can somehow prove that they never saw or read a copy, the court can’t help you at all.

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So, make sure that all your employees have read and agreed to the terms written down in the handbook. Ask them to sign a statement saying that they have done so and also notify them in case of any updates or new additions. A meeting to review policy changes will also serve well.

Make your handbook pleasing to the eye and easy to understand, avoiding jargon wherever possible. Title it unconventionally if you want; this is your company’s handbook, not a lesson in literature. Use one that will engage your employees and articulate your company’s culture right away.

7. Consult an employment attorney

As your company grows, and your handbook incorporates a wide range of policies, it may become tedious to update these policies regularly. Not to mention, when your company opens a branch in a new part of the country, it may require new policies in accordance with the jurisdiction there.

These laws may sometimes be overlooked, which can have serious implications for the company. Having an attorney comes in handy in these situations. And these employee handbooks should be reviewed at least once every two years.

The times change fast, and updating these policies regularly may be the key to your company becoming the next big thing or languishing in bankruptcy.

Featured photo credit: Wikipedia via upload.wikimedia.org

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Nabin Paudyal

Co-Founder, Siplikan Media Group

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Published on March 20, 2019

How to Write a Powerful Mission Statement for Your Business

How to Write a Powerful Mission Statement for Your Business

Have you ever felt lost in the minutia of your job?

As a business owner, I can relate to getting bogged down in the day to day operations of my business. Things like inventory, payroll, scheduling, purchasing and employee management take up the bulk of my day.

While these things are important and need to get done, focusing too much on the details can make you lose sight of the big picture. This is why having a good mission statement comes in handy.

What is a Mission Statement?

Put simply, a mission statement is an internal document that provides a clear purpose for the organization. It provides a common reference point for everyone in the organization to start from.

In other words, after reading your company’s mission statement, managers and employees should be able to answer the question “What are company’s main objectives?” For example, Southwest Airlines mission statement reads:[1]

“Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth.”

In this single statement, Southwest conveys the company’s goals of providing the highest level of customer service as well as providing a good working environment for their employees.

Mission Statement VS. Vision Statement

While the mission and vision statements are related, there are subtle but distinct differences the you should be aware of.

First of all, a mission statement is designed primarily as an internal company document. It provides clarity and direction for managers and employees.

While there’s nothing wrong with sharing your company’s mission statement with the outside world, its intended audience is within the company.

While a mission statement provides a general framework for the organization, the vision statement is usually a more inspirational statement designed to motivate employees and inspire customers. Going back to Southwest Airlines, their vision statement reads:[2]

“To become the world’s most loved, most flown, and most profitable airline.”

This statement inspires good feeling from the customer while motivating the employees to achieve that vision.

What Does a Good Mission Statement Look Like?

When coming up with a mission statement, it’s important to take your time and do it right. Too often, people (especially entrepreneurs) just write down the first thing that comes to mind and they end up with worthless or (worse yet) a generic mission statement that is utterly useless.

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Remember, a mission statement should provide a common framework for everyone in your organization.

When writing a mission statement, you should always try to incorporate the following;

  • What we do?
  • How we do it?
  • Whom do we do it for?
  • What value are we bringing?

Now, you can see how tempting it is to just come up with something generic that ticks off those four boxes. Something like “We provide the best widgets available online for the consumer.”

After all, that did check off all the boxes:

What we do? Provide widgets.

How we do it? Online.

Who do we do it for? The consumer.

What value we bring? The best widgets.

The problem with this mission statement is that it could apply to any number of companies producing the same widget. There is nothing to distinguish your company or its widgets from any of your competitors widgets.

Compare that mission statement to this one:

“We provide the highest quality widgets directly to the consumer at an affordable price backed up with a 100% satisfaction guarantee. If our clients aren’t 100% satisfied, we’ll make it right.”

What’s the difference?

Both mission statements answer all the same questions of what, how, whom and value. But in the second statement, they are differentiating their company from all other competitors by answering the question “what makes us unique”.

Another way to read that is, “Why you should buy from us.” In this example, it’s because our widgets are of the highest quality and we stand behind them 100%.

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You might have noticed the statement didn’t say that we sell widgets at the lowest possible price. That’s because we are emphasizing quality and satisfaction over price.

A different company’s mission statement may emphasize selling widgets at the lowest possible price with little to no mention of a guarantee.

Hallmarks of a Good Mission Statement

1. Keep It Brief

Your mission statement should be no longer than three sentences. This is not your company’s magnum opus.

You should be able to distill the what, how, who and why questions into a succinct message.

2. Have a Purpose

A company’s missions statement should include the reason it even exists.

Make clear exactly what the company does with statements like “We strive to provide our customers with …….”

3. Include a “How”

Take this as an opportunity to differentiate your company from its competitors.

How do you provide a product or service that’s different or better than how your competitor provides it?

4. Talk About the Value You Bring to the Table

This is where you can really set yourself apart from the competition. This is the “why” customers should buy from you.

Do you offer the lowest prices? Fastest delivery? Exceptional customer service? Whatever it is that sets you apart and gives your particular products, services or company an advantage talk about it in the mission statement.

5. Make Sure It’s Plausible

It’s okay to shoot for the stars just to settle for the moon, but not in a mission statement.

Being overly ambitious will only set you and your employees up for failure, hurt morale and make you lose credibility. You will also scare away potential investors if they think that you are not being realistic in your mission statement.

6. Make It Unique and Distinctive

Imagine if someone who knew nothing about your business walked in and saw how it was operating, then they read your mission statement. Would they be able to recognize that mission statement was attached to that business? If not re-work it.

7. Think Long Term

A mission statement should be narrow enough so that it provides a common framework for the existing business, but open enough to allow for longer term goals. It should be able to grow as the business grows.

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8. Get Feedback

This is very important, especially from managers and employees.

Getting their input can clarify how they currently see the company and their role within the organization. It’s also a good way to get people “on-board,” as studies show that people are more likely to go along with an idea if they feel included in the decision making process beforehand.

9. Review Often and Revise as Necessary

You should review the missions statement often for two reasons.

First, as a reminder of what the essence of the company is. It’s easy to forget when you are in the day to day grind of the business.

And two, to make sure that the mission statement is still relevant. Things change, and not everything can be anticipated at the time a mission statement was written.

For example, if a mission statement was written before the advent of the internet, a company that use to sell things door to door now probably has a website that people order from. You should always update the mission statement to reflect these changes.

The Value of Mission Statements: Why Go Through All of These in the First Place?

It may seem like a lot of work just for a few sentences that describe a company, but the value of a well written mission statement should not be discounted.

First of all, if you are an entrepreneur, crystallizing the what, how, whom and value questions will keep you focused on the core business and its values.

If you are a manager or other employee, knowing the company’s basic tenants will help inform your interactions with both customers and colleagues alike.

Strategic Planning

A relevant mission statement acts as a framework for strategic planning. It provides guidance and parameters for making strategic decisions for the future of the company.

Measuring Performance

By having the company’s mission in a concrete form, it also allows for an objective measurement of how well the organization is meeting its stated goals at any one time.

Management can identify strengths and weaknesses in the organization based on the criteria set forth in the mission statement and make decisions accordingly.

Solidifying the Company’s Goals and Values for Employees

Part of a well run organization is nurturing happy and productive employees.

As humans, we all have an innate need for both purpose and to be part of something larger than ourselves. Providing employees with a clearly defined mission statement helps to define their role in the larger organization. Thus, fulfilling both of these needs.

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Now I’m not saying that a mission statement can overcome low pay and poor working conditions, but with everything else being equal, it can contribute to a happier and more productive workforce.

To Hold Management Accountable

By creating a mission statement, a company is publicly stating its highest values and goals for the world to see. By doing so, you are inviting both the public and your employees to to scrutinize how well the company lives up to its ideals.

So if you state that you only provide the highest quality products, and then offer something less, it’s fair for both the public and the employees to question, and even call for a change in management.

If management doesn’t take the mission statement seriously, no one else will either; and the legitimate authority that management rely’s on will be diminished.

To Serve as an Example

This is the opposite side of the coin from the previous statement. If the highest levels of management are seen taking the mission statement seriously and actively managing within the framework of the statement, that attitude filters down throughout the organization.

After all, a good employee knows what’s important to their boss and will take the steps necessary to curry favor with them.

Finally, use the company’s mission statement as a way to define roles within the company. You can do this by giving each division in the company a copy of the mission statement and challenge the head of each division to create a mission statement for their respective departments.

Their individual mission statements should focus on how each department fits in and ultimately contributes to the success of the company’s overall mission statement. This serves as both a clarifying and a team building exercise for all parts of the organization.

Final Thoughts

Developing a mission statement is too often just an after-thought, especially for entrepreneurs. We tend to prioritize things that we perceive will give us the biggest “bang for our buck.”

Somehow, taking the time and effort to sit down and think seriously about the what, whom, how and value of our business seems like a waste of time. After all, we got in the business to make money and become successful, isn’t that all we need to know?

That mindset will probably get you started okay, but if you find yourself having any success at all, you’ll find that there really is such a thing as growing pains.

By putting in the time and effort to create a mission statement, you are laying the groundwork that will give you a path to follow in your growth. And isn’t building long term success what we are really after?

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Featured photo credit: Fab Lentz via unsplash.com

Reference

[1] Southwest Airlines: About Page
[2] Fit Small Business: 10 Vision Statement Examples To Spark Your Imagination

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