An employee handbook is also known as an employee manual or policy handbook. It's given to employees by an employer and should incorporate all employment and company-related information that staff need to know.

While current employees will find it useful too, an employee handbook is predominantly given to new hires (on day one or even before they start). As software firm Basecamp states in its employee handbook, there’s “as much to unlearn as there is to learn” when a person joins a new business.

A well-written employee handbook will do a lot to speed up the onboarding process and ensure crucial information isn't forgotten. In this guide, we'll explain how to write a handbook, the contents to include and how to make sure employees actually read it.

Of course, every business is different and has its quirks. That said, there are a few core things that should be included in all employee handbook contents.

1. Your mission, vision and culture

Start with a why. What is the problem your business solves? Why does it exist? Remember that an idea or mission that seems patently clear to you as the founder, might not be so for new employees.

A step further is to outline your company’s culture. The video game maker Valve’s handbook is a great example of how to write an employee handbook. Its company manual went viral a while ago because of how effectively it outlined its unique culture.

When considering what to write about your culture, think about what a new employee might struggle with. Is the hierarchy quite flat? Do you value independent thinking and self-directed working? Are you risk-takers?

Digging into these values will give a new hire the framework they need to hit the ground running.

2. Employee conduct and expectations

The employee handbook is also for you, as the employer. A well-written handbook sets what the company expects from all the people it employs. By codifying these guidelines, you can make difficult conversations go much smoother.

Working hours are a classic example of what needs to be made clear. There are standard working hours, but if the company expects employees to go over and above during key periods, the employee handbook is your chance to say so. Lunch and break times should also be clearly outlined.

Your handbook is a good place to link to your holiday policy and your sick leave policy. Many businesses now also include a sexual harassment policy in their handbook.

Think carefully about all the conduct-related points you want employees to know. If job roles are client-facing, for example, you may want to include a dress code policy.

3. The legal aspects of employment

You may want to get legal advice to ensure absolutely everything relevant is covered in your employee handbook’s contents. But there are a few staple things your handbook should touch on.

Equal opportunities: This section specifically explains the nine protected characteristics outlined by the Equality Act 2010:

• age
• disability
• gender reassignment
• marriage and civil partnership
• pregnancy and maternity
• race
• religion or belief
• sex
• sexual orientation

Health and safety: All businesses with five or more employees are legally required to have a written statement of general policy on health and safety. You may need an extra section if your business does dangerous work or hazardous activities.

Drugs and alcohol policy: Not a legal requirement, but if you want to carry out random drug and alcohol testing as an employer, it needs to be stated in a written policy. The employee handbook is a good place to do this.

Email and internet: Like with drugs and alcohol, if you wish to monitor employee activity during work hours, there needs to be a written agreement in place. If you do allow some personal use of the internet, you should clearly outline what is and is not acceptable.

Data protection: You are legally required to ensure the safe storage and processing of data about employees. The employee handbook is the perfect place to inform employees about your policy and what rights they have.

Parental, adoption and other leave policies: Your employee handbook should clearly explain your approach to maternity, paternity and adoption leave. Some of this is statutory (i.e. you’ve got to do it), but some businesses also offer time off for the care of ill or injured pets, for example. Let employees know what they can expect.

Sickness policy: Set out how absences will be managed and what responsibilities the employee has, like properly informing their manager or providing medical certificates.

4. Perks and benefits on offer

In Valve’s employee handbook, one section simply tells new hires to relax.

“All these things are here for you to actually use,” the guide explains. “Don’t worry that somebody’s going to judge you for taking advantage of it.”

That’s an often overlooked part about clearly outlining all of the perks and benefits in your employee handbook. Yes, it’s good practice – but even more than that, it’s an important way to put staff (specifically new hires) at ease.

Let employees know about all the things they can enjoy working at your company and that the use of these perks is absolutely encouraged! This is also a good place to say who the employee can speak to if they have any questions (whether that’s you or HR, for example).

An employee handbook can easily be boring: something flicked through on day one and then completely forgotten about. But if you’re serious about your values, culture and business ethos, a well-executed handbook is a must.

Think outside the box. A physical handbook is nice and concrete, but is there a way you can go beyond the plain pamphlet vibe? The American online retailer Zappos turned its employee handbook into a comic book, for example.

Another increasingly popular option is a digital handbook. These are quicker to update and make it effortless to link to resources. Host it somewhere that’s easy to access – the last thing you want is new employees struggling to find it.