More Than Policies: Crafting an Employee Handbook That Inspires Your Team

After all these years working with HR teams and businesses of various sizes, I’ve seen how employee handbooks can serve as vital resources for both employees and employers. 

A well-crafted handbook offers clear guidelines on policies, benefits, and company culture, but when done poorly, it can lead to confusion, legal issues, and disengaged employees. So the question of how to create an employee handbook is pretty fair. 

In this guide, I’ll explain everything you need to know to create an employee handbook. From understanding the key sections to including best practices and ensuring legal compliance, I will share insights from my experience to make the process more manageable.

What Is an Employee Handbook?

An employee handbook is a comprehensive document that outlines an organization’s work policies, procedures, expectations, and benefits. It acts as a one-stop portal that provides employees with a clear framework for understanding their roles and responsibilities in your company. 

It covers employment policies, code of conduct, compensation and benefits, work schedule, leave policies, and legal compliance. It helps establish a standard set of guidelines, foster consistency, and promote transparency, ultimately contributing to a positive work environment. 

For example, an employee handbook for a tech startup would include sections on company culture, remote work policies, performance expectations, and benefits like health insurance and stock options. It would also outline details on legal compliance, such as anti-discrimination policies and workplace safety standards.

Let me show a real-life example of how you can use employee handbook software to improve information search for your teams:

What Are Some Tips & Best Practices for Creating an Employee Handbook?

But, how to create an employee handbook for a small business? Crafting an employee handbook takes time and effort, regardless of your business size. Here are a few tips:

1. Understand Your Audience

Collaborate with HR and managers to tailor the handbook to your employees’ roles, backgrounds, and departmental needs.

2. Design a Logical Structure or Use a Template

Organize content into clear sections, such as company policies, benefits, and a code of conduct. Use bullet points, subheadings, and a table of contents for easy navigation.

3. Provide On-the-Go Access

Ensure the handbook is mobile-friendly and accessible on all devices, promoting self-learning and continuous development.

4. Include Real-Life Examples

Share employee stories or testimonials highlighting how policies and values have positively impacted their growth and success within the company.

5. Use Interactive Visuals

Add and create quizzes, clickable links, videos, and infographics to engage employees and improve knowledge retention.

6. Write in Clear, Conversational Language

Avoid jargon and complex legal terms. Use simple, approachable language to make the handbook easy to understand.

7. Seek Legal Review & Compliance

Have legal or HR professionals review the handbook to ensure it complies with applicable laws and regulations.

8. Regularly Collect Feedback

Continuously improve the handbook by collecting employee feedback on its usability and relevance, and updating it as needed.

How to Create an Employee Handbook Your Teams Will Love to Use

Now that we’ve discussed the importance of a great employee handbook and its key components, let’s see how you can build one your teams will love to use.

Our team uses ProProfs Knowledge Base to create employee handbooks and related documents in the following manner:

1. Choose Your Handbook Template or Start Fresh

Kickstart your employee handbook by selecting a template that aligns with your company’s structure, whether it’s a comprehensive policy guide or a quick-reference FAQ. No perfect fit?

Start with a blank canvas and build out sections intuitively. Focus on core categories like ‘Company Culture,’ ‘HR Policies,’ and ‘Benefits’ first, then populate with detailed pages. Follow these steps:

• After you have logged in, go to Sites and click on + Create New
• From the dialog box that opens, choose New Site
• After you’ve picked a template, set up your site, and your new employee handbook is ready.

2. Brand Your Handbook with Custom Design

Upload your logo, select your brand colors, and refine the layout to create a truly welcoming and professional space.

Adjust menu items and navigation to ensure your teams can find critical information quickly and without hassle. Follow these steps:

• Click Edit Home to access the builder
• Start with the logo. Navigate to the highlighted icon in the top right and upload your logo
• Add menu items to your header to help users navigate efficiently. You can customize these items by adding a URL, making it a button, and adding a background.
• You can further customize your homepage to make it completely yours.

3. Import Existing Policies & Resources

Already have scattered policies, training manuals, or onboarding documents?

Gather them all and centralize them in your new handbook. You can upload and organize existing Word files, PDFs, videos, or presentations. Follow these steps:

• Click Settings in the header menu
• From the dropdown menu, select the site where you wish to import the files
• Go to Import Sites > Import Files.

Check this help page if you want to prepare for the pre-import process.

4. Ensure Handbook Privacy & Security

Your employee handbook contains a wealth of sensitive company-wide policies, proprietary information, and sometimes even employee-specific details. 

Secure it from external viewers, unauthorized personnel, or even former employees to protect your organization’s confidential data.

For example: 

Set up a single sign-on (SSO) integration or an invite-only system so that only current employees with valid company credentials can open and browse the handbook, keeping it entirely off the public internet.

Follow these simple steps:

• Go to your site settings and toggle privacy settings to make your handbook accessible only to authorized users
• Enable password protection for your handbook to restrict access
• Use the “Private” option in your site settings to ensure only invited users can view content.

5. Create & Refine Content with AI Writer

With your handbook structure in place, use the AI Writer to streamline content creation or refine existing policies.

Use it to summarize lengthy documents, draft new sections from custom prompts, or quickly improve, shorten, or proofread your articles. Follow these steps:

• Click on +New, select Page, and choose Article as the template.
• Click on the AI icon at the top, choose Generate with AI, and select Create Content.

Here’s an example of a prompt structure I use to create any type of employee handbook content quickly. 

You can tweak this prompt depending on your topic and other requirements:

Here’s what the result looks like:

6. Implement Granular Access for Departments

Once the entire handbook is secure, this step focuses on managing who sees what content within it. Not all policies are relevant or appropriate for every employee. 

Assign precise permissions to ensure that specific teams or roles can only view the sections of the handbook pertinent to their work, keeping information organized, secure, and highly relevant.

For example, you might configure the handbook so that only Sales team members can see the detailed Sales Commission Policy. 

At the same time, only HR managers can view the Compensation Bands and Performance Review Guidelines for different employee levels. General employees would see the standard Code of Conduct and Leave Policies.

Follow these steps:

• Use role-based access controls to define what content each team can view, edit, or manage.
• To control permissions at different levels, create different roles, such as “Admin,” “Editor,” and “Viewer.”
• You can assign team members to specific content, ensuring they only see what’s relevant to their department.

7. Publish & Distribute Your Handbook

After a final review, use the preview function to catch any last-minute errors, and hit publish!

Then, ensure your employees know it’s live through company-wide announcements on Slack, email, or your internal communication channels. Follow these steps:

• Click the Edit icon on the home page.
• Before publishing your employee handbook, you can use the Preview function to see how it will look to your audience. This lets you catch any formatting errors, inconsistencies, or broken links.
• Once satisfied, click Save & Done, and your handbook will automatically publish.
• You can also share the handbook URL, export it as a PDF, extract page details in JSON/XML/CSV, or create a backup in HTML.

What Are the Key Sections to Include?

The following sections ensure clarity, consistency, and alignment with company values, helping both new and existing employees understand the policies and expectations.

1. Company Overview & Mission Statement

This section introduces the company, its mission, values, and vision. It sets the tone for the culture and goals.

Example: “Welcome to [Company Name] – Company Overview”

2. Employment Policies

This section includes policies about employment types (full-time, part-time, contractual), work hours, probation periods, and termination.

Example: “Employment Classification & Terms”

3. Code of Conduct & Workplace Behavior

Outlines expected behavior in the workplace, including dress code, ethics, professionalism, and the handling of conflicts.

Example: “Employee Code of Conduct”

4. Compensation & Benefits

Details about salary structure, bonuses, overtime, health insurance, vacation, sick leave, and other employee benefits.

Example: “Salary, Bonuses & Benefits Overview”

5. Leave Policies

Defines policies on vacation, sick leave, holidays, and any other time-off provisions.

Example: “Paid and Unpaid Leave Policy”

6. Health & Safety Policies

Covers safety protocols, emergency procedures, and workplace accident reporting to ensure a safe working environment.

Example: “Workplace Health & Safety Guidelines”

7. Disciplinary Procedures

Explains how performance issues and misconduct are handled, including warnings, suspensions, and potential termination.

Example: “Employee Discipline Policy”

8. Anti-Discrimination & Equal Opportunity Policies

Details the company’s commitment to diversity, inclusion, and non-discrimination in hiring and treatment of employees.

Example: “Equal Employment Opportunity Statement”

9. Employee Benefits & Perks

Highlights benefits such as healthcare, retirement plans, professional development opportunities, and wellness programs.

Example: “Employee Benefits Overview”

10.  Intellectual Property & Confidentiality Agreements

Ensures employees understand the importance of protecting company secrets, intellectual property, and customer data.

Example: “Confidentiality and Non-Disclosure Agreement”

11.  Workplace Technology & Social Media Policy

Specifies acceptable use of company devices, email, internet, and social media during work hours.

Example: “Technology Usage & Social Media Policy”

12.  Performance Review & Career Development

Describes how performance is evaluated and the support offered for professional development, training, and career growth.

Example: “Employee Performance Evaluation Process”

13.  Grievance & Complaint Procedures

Outlines the process for employees to report complaints or concerns regarding their job or the workplace, ensuring a clear avenue for conflict resolution.

Example: “Employee Grievance Procedure”

14.  Termination Procedures

Defines the steps involved in voluntary and involuntary termination, including notice periods, exit interviews, and final paycheck details.

Example: “Employee Exit and Termination Procedures”

15.  Acknowledgement of Receipt

A form that employees sign to acknowledge that they have read and understood the contents of the handbook.

Example: “Employee Handbook Acknowledgement Form”

What Are the Benefits of Creating an Employee Handbook?

An online employee handbook serves as a compass, guiding employees throughout their journey in your organization and helping them work hassle-free.

There are countless reasons why your company needs an employee handbook. Let’s look at some of the major ones.

1. Facilitates Employee Onboarding

An employee handbook simplifies onboarding by providing new hires with a clear understanding of company rules, culture, and expectations. It streamlines the onboarding process, reducing the HR team’s workload.

2. Promotes On-the-Go Learning

The handbook provides easy access to training materials and company policies, encouraging continuous learning and professional development and helping employees grow at their own pace.

3. Eliminates Confusion Around Work Policies

An employee handbook clearly outlines policies like work hours, compensation, and leave, ensuring consistency and reducing misunderstandings or confusion regarding company guidelines.

4. Imparts Clarity on Roles & Responsibilities

The handbook defines roles and responsibilities for both new hires and existing employees, ensuring clarity in job expectations and helping employees align with company goals.

5. Outlines Performance Expectations & Evaluation

It outlines performance expectations and evaluation processes, promoting constructive feedback, career development, and fostering a high-performance work culture.

Employee Handbook Examples from Top Brands

Here are a few top-notch examples to keep in mind when you are creating your employee handbook.

1. Airbnb’s Employee Handbook

Airbnb’s employee handbook has a unique and creative approach to educating and engaging employees. The online manual is designed to be visually appealing and interactive. It includes employee stories, interactive elements, practical information, real-life examples, and helpful tips in clear and concise language.

2. Valve Employee Handbook

Valve’s handbook is another example to learn from while creating an employee handbook. It adopts a decentralized organizational structure to encourage self-direction and cross-disciplinary collaboration. Its visually engaging design and clearly organized sections offer a user-friendly experience.

The company also collects employee feedback and peer reviews to ensure continuous improvement. Overall, Valve’s handbook is a thoughtfully crafted resource to empower employees and promote a positive work environment.

3. Netflix’s Culture Memo

The Netflix Reference Guide on Freedom & Responsibility Culture sets itself apart in terms of content and design. The handbook highlights a flat organizational structure, inclusive policies, work-life balance, and adaptability. The manual is easy to navigate and user-friendly. It’s an engaging resource to educate employees and effectively convey the company’s unique culture of freedom and responsibility.

What Are the Legal Compliance Essentials & Pain Points?

Ensuring that your employee handbook meets legal requirements is essential to protect both the company and its employees. It helps to ensure compliance with laws while reducing the risk of legal issues.

Here are some key legal requirements to include in your employee handbook:

1. Anti-Discrimination Laws: Outline your commitment to a non-discriminatory workplace, ensuring equal opportunity for all employees regardless of race, gender, age, or disability.
2. Workplace Safety Regulations: Ensure compliance with OSHA guidelines and other workplace safety standards, providing clear safety protocols, procedures for reporting incidents, and emergency contact information.
3. Family and Medical Leave Policies: Include information about employees’ rights under the Family and Medical Leave Act (FMLA), outlining procedures for requesting leave and eligibility criteria.
4. Wage and Hour Laws: Make sure your handbook complies with wage and hour laws, such as overtime, pay rates, and employee classifications (exempt vs. non-exempt).

There are two common challenges many companies face: 

1. Keeping Your Handbook Up to Date

• Frequent Legal Reviews: Regularly consult with legal professionals to review your handbook and keep it in compliance with the latest legal changes. For instance, updates to anti-discrimination laws or wage regulations must be reflected promptly.
• Internal Audits: Conduct periodic internal audits to ensure that all policies, especially those related to workplace safety, health benefits, and leave policies, align with current regulations.
• Clear Version Control: Implement a version control system, which helps track updates made to the handbook and ensures that employees always have access to the most current information.

2. Avoiding Outdated Information

• Regular Updates: Set a schedule for reviewing and updating the handbook at least once a year or whenever there are significant legal changes or company policy shifts.
• Employee Feedback: Encourage employees to provide feedback on the clarity of policies. This will help identify areas that may need revision or clarification.
• Document Revision Tracking: Maintain a revision history that notes when and why changes were made. This provides transparency and ensures employees can see the most recent policy updates.

Delight Your Teams & Improve Productivity with Employee Handbooks

An employee handbook is essential for establishing a clear understanding of company policies, roles, and expectations. It serves as a comprehensive guide for new and existing employees, streamlining the onboarding process, promoting a culture of learning, and eliminating confusion around work policies.

Creating a well-organized handbook requires careful planning and attention to key sections, such as company overview, benefits, legal compliance, and performance expectations. Addressing common pain points, like outdated information and unclear communication, ensures that the handbook remains relevant and useful.

ProProfs Knowledge Base simplifies the process of creating and managing an employee handbook. Its AI features allow you to quickly generate and organize content, keeping your handbook up to date and easily accessible for all employees.

Frequently Asked Questions

Q. How many pages should an employee handbook have?

It depends on the number of topics you cover in the handbook and the details you add to each topic. The more your topics and the more detailed the sections, the more will be the pages in your handbook. 

Q. How much does it cost to create an employee handbook?

This depends on how comprehensive your employee handbook is. It can cost anywhere between $1200 to $4000.

Q. How do you end an employee handbook?

You can end the handbook on a positive note, encouraging employees to read all sections thoroughly and ask questions to their respective managers. You can also convey how happy you are to have them in your organization.