Ronald Adler
A nationwide survey of organizations revealed that while they use employee handbooks to address key business, legal, and talent management issues, they often limit the effectiveness of their handbook policies by using ineffective employee handbook practices. As the survey report noted, in many organizations there is a disconnect between the drafting and issuing of handbook policies and the practices that ensure those policies address critical issues and are effectively implemented. This disconnect can lead to missed business goals, increased legal action, and the loss of critical talent.
Employee handbooks are a critical tool in providing important information about your organization to employees. Employee handbooks typically describe what you expect of your employees and what your employees can (should) expect from you. Employee handbooks also provide critical information about your organization and your workplace, and how your employees are expected to fit in.
Employee handbooks further formalize mutual expectations. In delineating these expectations employee handbooks create opportunities and risks. Handbooks provide your organization with the opportunity to enhance the value of its human capital, make your organization more competitive, and improve individual and organizational performance. Conversely, handbooks can impede the achievement of business objectives, increase employment related liabilities, and reduce managerial prerogatives by making promises or commitments to certain procedural safeguards that your organization did not intend to make. As noted in a memorandum from a former General Counsel of the NLRB: “…incorrectly designed employee handbooks can violate the law and have a ‘chilling effect’ on employees’ activities.”
Thus, while your employee handbook provides you with the opportunity to make your work force more committed and supportive of organizational goals, it can also unfortunately serve as the basis for employees’ legal action and can significantly reduce employees’ commitment to your organization’s success.
Ronald Adler
Speaker, President-CEO of Laurdan Associates, Inc