No matter how many people you employ, an employee handbook is essential for businesses of all sizes. Your handbook is a living document that outlines policies, establishes company culture, clarifies expectations, and explains employee rights. It can also protect your company from internal misunderstandings, compliance gaps, and legal risks.
If it’s been more than a year since you reviewed your employee handbook, or if your business has recently undergone structural changes, it’s time to dig in and make updates.
In this article, we’ll walk through what your handbook should include, what it should avoid, and how LBMC Employment Partners can serve as your guide in getting it right.
Why Updating Your Employee Handbook Matters
An effective handbook should evolve with your business and the world around it. It’s important to make sure expectations of the policies are in alignment with local, state, and federal law—and also align with how your company actually operates today. This helps both employees and employers navigate new workplace changes in productive ways.
Remote work, AI tools, shifting leave laws, and workplace safety are just a few reasons regular handbook updates are necessary. Without timely policy and procedure updates, your handbook could be:
- Leaving your business exposed to compliance risks
- Creating inconsistency in how policies are interpreted or applied
- Undermining your culture or employee experience
- Exposing leadership to accusations of unfair treatment
Updating your handbook annually helps mitigate risk, eliminates confusion, supports a smooth onboarding experience, and gives your team a resource they can trust and refer to with confidence.
What an Updated Employee Handbook Should Include
All too often, employee handbooks become a collection of standard policies pulled from generic templates. An updated, relevant handbook should do more than list benefits or explain PTO. Instead, it should serve as a clear reflection of how your company operates and what it values. Here are five ways to make that happen:
1. Clearly communicate your company’s culture.
Your handbook is often one of the first internal documents a new employee reads. It shapes their first impressions of your organization’s priorities and approach. Use it to explain what inclusion looks like in practice, how decisions are made, and what values are upheld.
- Instead of simply stating, “We are an equal opportunity employer,” explain how your company creates inclusive team norms and supports employee resource groups or DEI training.
2. Explain how and where work gets done.
Workplaces have evolved, and so have expectations around when, where, and how work gets done. Whether your team is fully remote, back in the office, or working a hybrid schedule, your handbook should reflect your current reality. The key is clarity. Set expectations that support productivity while aligning with your culture and operational needs.
- Example: If your company has returned to a full-time office schedule, outline expectations for in-person attendance and use the opportunity to reinforce the benefits of face-to-face collaboration.
3. Clarify expectations without using legalese.
Handbooks are sometimes written in dense, compliance-first language. But unclear policies, especially around attendance, technology use, or discipline, can lead to inconsistent enforcement. Use plain language that helps employees understand what’s expected and why it matters.
- Rather than a blanket statement like, “excessive tardiness may be subject to disciplinary action,” clarify the desired action. Try: “If you’re running late, notify your manager as soon as possible. Repeated tardiness can impact team productivity and may lead to a performance conversation.”
4. Review AI usage policies.
The rise of AI tools and cybersecurity breaches brings new responsibilities and challenges to the workplace. Your handbook should set guidelines for the ethical use of generative AI to clarify how data, intellectual property, and confidential information should be handled. It should also outline what employees can use AI tools for and which tools are allowed.
- Example: Dedicate a section of the handbook to detailing how employees can use AI tools responsibly for tasks like content drafting or research. You can also include specific examples of when they should avoid these tools, such as when handling confidential client information.
5. Include key information.
Certain policies and expectations must be captured in an employee handbook. We recommend including the following sections, although your handbook may differ based on the size of your company and your industry:
- Acknowledgements
- Commitment to Diversity
- General Employment Practices
- Workplace Conduct
- Time Off and LOA
- Payroll Practices
- Employee Benefits
- Safety and Security
- Leaving the Company
6. Leave room for growth and change.
New laws, evolving practices, and shifting priorities are inevitable, and employee handbooks need to be able to evolve alongside internal and external changes. Be sure your handbook communicates how often it’s reviewed and how changes are shared.
- Example: Add a note explaining that the handbook is reviewed annually and share how employees will be notified if changes are made.
What to Avoid
A well-meaning policy can still backfire if it’s poorly written, misaligned, or too rigid. Here are a few traps to avoid when updating your handbook:
1. Don’t use generic templates without customization.
Standard policies can be a good starting point, but failing to tailor them to your business can introduce contradictions or irrelevance. A policy written for a manufacturing environment won’t translate well to a professional services firm. Always customize your language and intent.
2. Make sure policies accurately reflect how the company operates.
When your handbook says one thing but your managers do another, it can create confusion or open you up to potential liability. If you say performance reviews happen annually, but haven’t done one in two years, it’s time to align.
3. Be careful not to overpromise.
Language that sounds supportive, such as “We offer flexible work for everyone,” can come back to haunt you if it’s not consistently applied. Be careful not to set unintentional precedents. Use words like “may,” “typically,” or “as business needs allow” to keep policies flexible and realistic.
4. Don’t write like a law firm.
Handbooks should be legally sound, but that doesn’t mean they need to read like a legal document. Jargon-heavy content alienates employees and defeats the purpose of clear communication. Use plain language to explain both what your policies are and why they exist.
5. Check for consistency.
Using the right language matters in a handbook. Review yours to make sure you haven’t written anything that could create unintended legal obligations or contradict employment laws. Your handbook also should not include any proprietary company information, excessive procedural detail, inconsistent or duplicative policies, or outdated benefit information.
Need a Partner to Help You Get It Right?
You don’t have to tackle handbook updates alone. Whether you’re building from scratch or aligning policies with evolving laws and workplace norms, LBMC Employment Partners can help.
Our dedicated HR professionals work alongside your leadership team to ensure your handbook is legally sound, culturally aligned, and easy for your employees to understand and use. From compliance to clarity, we’ve got you covered. Contact our team to get started.
