Every time your company hires a new worker, whether they are your first employee or your four-hundredth, you take on some risk.
That worker could get hurt on the job and make a major claim against your workers’ compensation policy. They could make a mistake that hurts a client relationship or affect a production batch of your company’s products. They could even sexually harass one of their co-workers and cause a huge lawsuit against your company.
Proper training and good paperwork can help reduce how much liability your company has due to its workforce. An employee handbook that outlines your company’s practices and expectations for its workers can help train your workers and protect the business from many common forms of employment-related liability. There are many compelling reasons to create an in-depth employee handbook for your business.
You can establish a uniform approach to compensation and benefits
When your company’s policies about pay and benefits aren’t clear, workers may feel like they don’t receive the same treatment as their co-workers or feel entitled to benefits or compensation you never promised to give them.
Transparent company policies in writing about benefits, raises and other employment terms will reduce the likelihood that workers feel like they have received unfair or discriminatory treatment by the company.
You can create expectations about worker behavior
A worker who mistreats other people on their team or who is rude to a customer can cost your business money. Having clear anti-harassment and anti-discrimination policies in your handbook will deter workers from engaging in inappropriate behavior.
Good company policies will also create clear consequences for those who do so anyway. You can also have policies regarding the reporting and investigation of harassment or discrimination claims to further protect your business.
You can provide training on workplace conduct and safety
Handbooks are valuable reference tools for employees. They can refer to their handbooks to discover company policy and best practices.
Businesses can include everything from internet and social media policies to safety practices depending on their industry. Your handbook can help guide workers and staff members to make good decisions on the job and to resolve conflicts when they disagree about important matters.
Understanding your responsibilities as an employer and trying to limit your liabilities can help protect your business from worker-related liability.