COVID-19 Resources

Professional Service Agreement

The Importance of Employee Handbooks

Should your business have an employee handbook? If you believe that consistent, clear employer-employee communication is necessary for productive and profitable employee relations, then your business (regardless of size) should not attempt to operate without a clearly worded, up-to-date employee handbook.

An employee handbook is a basic written publication that is designed, published, and distributed for the purpose of providing employees and their family members with two major pieces of information:

1. What can employees and their families expect from the business?
2. What does the business expect from its employees?

Between the covers of a well-written employee handbook, these two questions are answered clearly, persuasively, and honestly.


One important purpose of the employee handbook is to promote consistency in the day-to-day administration of personnel and benefit polices. Another major purpose is to prevent employee misunderstandings, complaints, grievances, and job dissatisfactions that often occur due to a lack of understanding or a misunderstanding of personnel and benefit policies.


Listed below are a few of the important benefits to a business in having an up-to-date, published employee handbook:

A handbook promotes understanding of the business's policies and procedures.

A handbook promotes consistency and management credibility.

A handbook is the supervisor's reference manual and human resources guidebook.

A handbook can be an effective recruiting tool.

A handbook is an excellent resource for orientation of new employees.

A handbook documents your fair employment practices and your compliance with equal employment opportunity laws.

A handbook will assist your business in complying with federal and state employment laws.

A handbook can be a valuable legal defense for your business if it is faced with an employee lawsuit.

Should you need additional information about developing or revising an employee handbook, you may contact SESCO Management Consultants by phone at 423-764-4127 or by email at