People & Leadership

Employee handbooks: What to include and how to write one

A great deal of workforce management is about keeping everyone aligned with your company goals and culture. Staff can easily look up these guidelines in the employee handbook.

How can you build a strong, responsible workforce if your staff don’t know what’s expected of them?

Just like a successful marriage, communication is the key.

One of the best ways to communicate your company’s culture, policies, and expectations is through the employee handbook.

We know, running a business is hard enough—and now you have to write a book as well?!

It’s not as bad as it seems. A lot of the information you require is already distributed across your systems.

This guide shows you how to compile a well-crafted handbook that ‘literally’ gets you and your employees on the same page.

Here’s what we’ll cover:

What is an employee handbook

An employee handbook is a brochure for the benefit of your staff, outlining your business’s policies, expectations, and culture.

It’s a reference guide, ensuring everyone understands their roles and responsibilities.

The handbook lists company rules and establishes boundaries on what is acceptable workplace behaviour.

More importantly, it spells out the requirements for legal compliance in the workplace, helping to protect both your employees and your business.

By clearly communicating these guidelines the handbook sets standards that are applicable to everyone, no matter how big your company is.

This helps to reduce misunderstandings or disputes.

Why your business needs an employee handbook

Businesses of all sizes need an employee handbook to document policies that meet legal standards and reduce risks.

It protects you and your company from potential disputes, misunderstandings, and legal challenges.

At the same time, it safeguards your employees by clearly outlining their rights and responsibilities.

It’s particularly important for small businesses that don’t have the resources to deal with litigation.

Having a handbook shows professionalism and helps new hires quickly understand your workplace culture.

It also serves as a useful tool during conflicts or disciplinary actions by clearly stating expectations.

Beyond compliance, a good understanding of your company values and benefits improves employee engagement because it fosters trust, motivation, and a sense of belonging.

Ultimately, the handbook is a foundation for transparency between you and your employees.

What should be included in an employee handbook

The employee handbook should cover all areas that affect your workforce and workplace culture. It needs to be comprehensive but easy to understand.

Here are the key sections to include:

Mission statement and company values

Start with your mission and values.

This sets the tone and explains what your business aims to achieve.

It helps employees align with your goals and understand what drives your company culture.

Code of conduct

This section outlines expected behaviour and ethics at work.

It covers topics such as professionalism, punctuality, dress code, and communication standards.

We all see a wide variety of corporate styles in the media and may perceive that acceptable behaviour is becoming more flexible.

However, it’s up to you to decide where your company stands on this spectrum and to make those boundaries clear to your staff.

This helps maintain a respectful and productive workplace that reflects your company’s values.

Workplace policies

While the code of conduct dictates your corporate image and interpersonal interactions, workplace policies address practical matters like attendance, scheduling, health and safety, data protection, and remote working.

These are the formal rules and procedures that keep your business running smoothly and compliant with regulations.

They provide a consistent framework that supports both management and employees in understanding their rights and obligations.

Pay and career development

Here, you explain how pay is structured, including salary bands, bonuses, and raises.

It’s important to outline how compensation is determined without revealing specific salary figures across the hierarchy.

Keeping exact salaries confidential helps maintain fairness and privacy among employees.

You should also describe opportunities for career development, such as training, promotions, and skill-building.

This motivates staff and shows a clear path for growth within your company.

Benefits and perks

Detail any benefits you offer such as pension schemes and health insurance, or non-cash benefits such as wellness programmes and discount agreements with local businesses.

This shows your commitment to employee wellbeing, while also adding value to their overall compensation package.

Highlighting these perks helps attract and retain talent by demonstrating that you care about your employees’ health and work-life balance.

Leave and holidays

Clarify policies for annual leave, sick leave, parental leave, compassionate leave such as funerals, and public holidays.

It’s important employees understand how their days of annual leave are calculated, what they are entitled to by law and company policy.

They also need to know the correct process for requesting time off and who to clear it with.

Well-defined rules allow everyone to plan their absences without disrupting business operations.

Anti-harassment, discrimination & equal opportunity

This section must be a strong, unequivocal statement against harassment, discrimination, and unfair treatment.

 Failing to address these issues properly can lead to severe legal consequences—not only for your company but also for individual staff members involved in misconduct.

A robust policy protects your business from costly lawsuits and reputational damage.

 At the same time, it empowers employees to report incidents confidently, knowing they will be taken seriously.

This shows your commitment to creating a safe and respectful workplace for everyone.

Resignation & termination

Explain the conditions under which employment may be terminated, whether by the employer or employee.

Outline the proper procedure for resigning, including required notice periods so both sides can prepare.

You should also include information about exit interviews, which help gather feedback and ensure a smooth transition.

Finally, specify which company property—such as keys, devices, or documents—must be returned by departing employees to protect your business assets.

Employee acknowledgment form

End with a form for employees to sign, confirming they have read and understood the handbook.

This protects your business and reinforces accountability.

How to write an employee handbook (step-by-step)

You can see that an employee handbook touches on many facets. It’s easier to put together if you break it down into basic steps.

Follow this process to create a clear, useful handbook for your team:

1. Gather your existing policies, legal requirements, and company values. Decide how much of this your employees need to know to understand their roles and your expectations.
2. Decide on the handbook’s structure, organising content logically. For example, start with company culture and values, then move on to workplace policies and end with formal procedures.
3. Write each section clearly and simply, avoiding jargon. Use plain language that all employees can easily understand.
4. Include real-world examples or scenarios to clarify complex points. For example, describe how to report a grievance or request time off.
5. Review the draft with managers or HR specialists for accuracy and completeness.
6. Seek legal advice to ensure compliance with employment laws and regulations.
7. Format the handbook for easy reading, using headings, bullet points, and an index for quick reference.
8. Prepare for regular updates as policies or laws change. This keeps the handbook relevant and factually correct.
9. Plan whether you’ll distribute the handbook digitally or in print, and how to ensure they acknowledge receiving it.

Employee handbook examples

Many online resources offer free or affordable handbook templates designed for small to medium businesses.

Online examples can greatly simplify the handbook writing process, but don’t skip step 6 in the above list—seek legal advice to be sure the outline covers all necessary angles.

Look for examples tailored to your industry and company size, as handbooks typically differ across sectors in terms of policies, regulations, and workplace culture.

The handbook should balance thoroughness with readability, focusing on practical, actionable information.

Check that it doesn’t rely on overly complex legal jargon. Remember, online examples are not set in stone.

Use them purely for reference, adding or removing sections according to your needs or circumstances.

Rolling it out: How to deliver your new handbook

It’s not enough to casually deliver the handbook as if it’s just a formality.

Set up a meeting or training session with employees to explain its purpose and highlight key sections.

Offer both digital and printed copies—whichever format each employee finds most accessible.

Encourage questions and feedback to ensure everyone understands how to use the book and what they can get out of it.

Remind employees that the handbook is a living document and will be updated as needed.

Regular reviews help maintain its relevance and reinforce your company’s commitment to clear communication.

Tools & software to create employee handbooks

Today, there is specialised software on the market that can streamline creation and management of employee handbooks.

These tools offer templates, collaboration features, and easy customisation.

They often include compliance checks and digital signature capabilities for acknowledgment forms.

Some solutions integrate with corporate HR systems for seamless employee management, pulling in data such as employee roles, benefits, and leave balances.

Specialised software reduces manual errors, saves time, and helps ensure consistency in format, layout, and structure across your policies.

The content of the policies themselves will vary based on the specific needs of different departments or roles, but consistent formatting keeps your handbook professional, easy to navigate, and accessible for all employees.

Final thoughts

Creating an employee handbook is an important step for any growing business.

It clarifies expectations, supports legal compliance, and strengthens your company culture.

By investing time to map out and design a user-friendly handbook, you make onboarding and daily management easier for you and your team.

Use the right tools to deliver a handbook that is clear, current, and accessible to foster a positive and professional workplace.