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Top 3 Reasons To Have an Employee Handbook

Employee handbooks are the foundation of the relationship between an organization and its employees. Whether you have a small or large business, handbooks are one of the best tools to protect you from potential disputes and communicate policies and expectations uniformly to all employees. At EctoHR, Inc., we recommend every company have an employee handbook that is reviewed and updated regularly. Below are the top reasons why your organization should invest in a well-written employee handbook:


  1. Introduces the Company’s culture

The introduction to your organization is an essential part of every employee handbook, helping set the tone for the Company culture, introducing the mission and values, and shaping desired behaviors by employees.


  1. Prevents and protects from legal liabilities

An employee handbook is the perfect place to include applicable federal, state and local laws to ensure employees are aware of their rights and responsibilities, as well as the responsibilities of the Company. Including these laws and Company policies with a signed employee acknowledgment becomes useful when facing a legal dispute from a current or former employee. It demonstrates the organization’s commitment to compliance and employees’ agreement to follow the terms and conditions of employment.


  1. Communicates Company policies and expectations

An employee handbook should clearly communicate to employees what is expected of them and what they can expect from the organization. This can include the procedure to request time off, how to keep track of hours worked, or how to handle a customer complaint. Policies are only truly effective when they are executed consistently throughout the organization. Make this section serve as a framework for Managers and Supervisors to follow when enforcing policies or handling issues.


While Google is great, it is not the place to turn for such an important document. If you do not currently have an employee handbook and need one created, or would like to review your existing policies, we are here to help! Please contact EctoHR, Inc. at 810.534.0170 or


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