If you’re the owner or manager of a small to mid-sized company, you may feel that an official employee handbook is just something for larger corporations. If thats the case, there are some important benefits provided by employee handbooks that you may not be aware of.
The reasons that larger corporations maintain and provide employee handbooks are just as applicable to a smaller company. One benefit, that many business owners aren’t aware of, is that insurance companies look favorably on companies that have their employment policies written out in a manual and is kept up-to-date. A document that clearly identifies the rights and responsibilities of the employer and employee relationship in a business can greatly decrease the potential liability risk to your insurance carrier. Many insurance companies recognize this factor and provide reduced rates or other incentives for employers that provide an employee handbook to their employees.
This decrease in liability risk is a benefit itself, even if it doesn’t improve your insurance rates. Legal litigation costs are something every employer wants to avoid. Having your policies in written form can protect an employer from the types of misunderstandings that often lead to employment-related suits.
Of course, an employee handbook is only as good as the contents. If a manual isn’t kept up-to-date as policies and employment laws change, it loses its value. This is another excuse employers often use when they hesitate to create an employee handbook in the first place. They don’t want to spend lots of time and money creating a manual that will have to re-done every 6 to 12 months. With the technology available through small business HRIS (human resource information systems) software, this excuse is easily eliminated.
Small business HRIS software packages that include an employee handbook and company policy feature makes creating and updating those HR documents simple and inexpensive. The companies that create and sell HRIS software for small businesses recognize the importance of providing their clients with the proper legal language and keeping that language up-to-date. This eliminates the need for hiring an attorney to create your manual or to review it periodically. Just as payroll accounting software provides you with the most up to date tax information, HRIS software can help with the issues related to the employer-employee relationship.
Small business HRIS software is not just for creating employee handbooks. It includes a full range of data tracking options related to human relations. So, for one small price, a company can take full control of their HR needs with the employee handbook option being just one of the many benefits