10 Common Employee Handbook Mistakes That You Need to Avoid

What is an Employee Handbook? 

As an employer, you understand the importance of having an employee handbook that outlines the policies and procedures of your organization. The handbook serves as a guidebook for employees and provides them with information on their rights, responsibilities, and benefits. However, creating an effective employee handbook isn’t as simple as it may seem. 

There are many mistakes that employers can make when developing their employee handbook, and these mistakes can have serious consequences. 

10 Common Employee Handbook Mistakes

1. Not Customizing the Handbook

Each organization is unique, and the handbook should reflect the specific policies and procedures of your company. If you use a generic handbook that isn’t tailored to your organization, it may not address the specific needs of your employees. This can lead to confusion, misunderstandings, and potentially legal issues.

Take the time to customize your handbook to fit the needs of your organization. Include policies and procedures specific to your company and ensure that the handbook accurately reflects your company's culture, values, and mission.

2. Using Outdated Language

Language changes over time, and what may have been acceptable in the past may no longer be appropriate. Using outdated language in your employee handbook can be confusing or even offensive to your employees. It is important to ensure that the language used in your handbook is current and appropriate.

Examples of outdated language that you should avoid include:

• Gender-specific language (i.e., using "he" or "him" instead of "they" or "them")

• Terms that are no longer socially acceptable (i.e., racial slurs or derogatory terms)

• Terms that are no longer legal (i.e., discriminatory language) 

• Including Ambiguous or Vague Language

Your employee handbook should be written in clear, concise language that is easy to understand. However, many handbooks include ambiguous or vague language that can lead to confusion and misunderstandings.

Be specific and detailed in your language, and refrain from using technical jargon or legal terms that may not be familiar to your employees. Use examples and scenarios to illustrate your policies and procedures, and make sure that your language is consistent throughout the handbook.

3. Including Ambiguous or Vague Language

Your employee handbook should be written in clear, concise language that is easy to understand. However, many handbooks include ambiguous or vague language that can lead to confusion and misunderstandings.

Be specific and detailed in your language, and refrain from using technical jargon or legal terms that may not be familiar to your employees. Use examples and scenarios to illustrate your policies and procedures, and make sure that your language is consistent throughout the handbook.

4. Understating Key Policies and Procedures

Your employee handbook should include all of the key policies and procedures that are relevant to your organization, including those related to employment, compensation, benefits, performance, and conduct.

A good example of this would be outlining the company's health insurance coverage in detail for employees to use as a resource. You can also include a doctor email list database or phone numbers that may be used in case of an emergency, in addition to a list of approved medical facilities.

The company's policies and procedures must be reviewed carefully and included in your handbook. Having a table of contents and an index to make it easier for employees to find the information they need can help reduce confusion and frustration.

5. Having Policies That Are Unenforceable

Another common mistake is including policies that are illegal or unenforceable under state or federal law. This can expose your company to legal liability and create confusion among your employees.

Consult with legal experts to ensure that all of your policies are legally compliant and enforceable. Keep in mind that state and federal laws may vary, so it's important to stay up-to-date on any changes that may affect your policies.

6. Ignoring Workplace Diversity and Inclusion

One of the most important considerations when creating an employee handbook is the topic of workplace diversity and inclusion. It’s crucial that your handbook contains policies and language that promote a safe and welcoming work environment for employees of all backgrounds. Failing to address this topic can lead to employees feeling unsupported, marginalized, or even discriminated against.

You can include a statement of commitment to diversity, equity, and inclusion, policies on equal employment opportunities, and guidance on appropriate workplace conduct and language.

7. Implementing Restrictive Policies

While it’s important to establish rules and guidelines for employees, including policies that are too restrictive can lead to low morale, resentment, and decreased productivity. Employees need to feel trusted and empowered to do their jobs effectively, and overly restrictive policies can make them feel micromanaged or unsupported.

Take a balanced approach when creating policies for your employee handbook. Review the needs of your business and the expectations of your employees when establishing guidelines, and be willing to make adjustments as needed based on feedback and outcomes.

8. Failing to Provide Consequences for Violations

Another mistake in employee handbook creation is failing to provide clear guidelines and consequences for policy violations. This can lead to confusion and uncertainty for employees, which can ultimately lead to a lack of trust in the company and its leadership.

To avoid this mistake, ensure that your employee handbook clearly outlines the consequences of policy violations. This can include a progressive discipline process, including verbal and written warnings, suspensions, and termination. 

For instance, the handbook can remind your sales team that they risk having access to the company's sales platform cut off if they use it for personal purposes. 

9. Preventing Employees from Providing Feedback

Creating an employee handbook isn’t a one-time process, and it’s important to constantly gather feedback from employees to ensure that the handbook is effective and up-to-date. Failing to provide a way for employees to provide feedback can lead to a lack of engagement and a sense of disconnection from the company's policies and culture.

Consider including a feedback mechanism in your employee handbook. This may include a suggestion box, an anonymous feedback form, or regular surveys to gather feedback from employees.

10. Refusing to Train Employees on the Handbook

Finally, a common mistake is failing to train employees on the contents of the employee handbook. Simply providing the handbook to employees isn’t enough to ensure that they understand the policies and guidelines it contains.
New employee training or orientation sessions to review the employee handbook and answer any questions should be mandatory. Offer regular refresher training to all employees to keep the handbook fresh in their minds and relevant to their roles.

Wrapping Up

Creating an employee handbook is an important step in setting expectations and guidelines for your employees. However, it’s important to avoid common mistakes that can lead to confusion, frustration, and legal issues. 

By addressing workplace diversity and inclusion, avoiding overly restrictive policies, providing clarity on consequences for policy violations, providing a way for employees to provide feedback, and training employees on the handbook, you can create an effective and well-received employee handbook that supports your business goals and fosters a positive work environment.