Creating an Effective Employee Handbook: Tips & 7 Examples for Inspiration

Employee handbooks are an HR essential that ground workers by setting expectations on the relationship between employee and employer.

New hires (often the people most likely to read your handbook cover to cover) can use the handbook to learn about your company culture as they settle in.

Beyond those first few months, all workers in your organization will benefit from using the company handbook as a solid reference point throughout their tenure, especially if you’ve organized it in a way that makes it easy to access and, dare we say, fun to read (yes, it’s possible).

The problem is that many handbooks are token gestures when they could be so much more. It’s time to fix that. This guide explores how to write an employee handbook worth reading so it increases employee engagement and boosts your company culture.

TL;DR—Key Takeaways

• Employee handbooks introduce new hires to an organization. They document company policies, employee benefits, and cultural issues like expected behavior.
• Effective employee handbooks blend detail with creativity. They excite readers and inspire them to contribute to the company culture while delivering useful information to help employees navigate working life.
• Essential sections include equal opportunities and anti-discrimination policies. Chapters on healthcare and pension rights, time off, and the work environment should also be included. Most modern handbooks feature security guidance as well.
• Consider legal issues when writing an employee handbook. Include a disclaimer to avoid legal action if the handbook changes or you can’t deliver every promise.
• We recommend treating your employee handbook as a living document. Encourage feedback to improve the text and update it regularly as your company evolves.
• Make your employee handbook readily available to your workers 24/7. Your best bet is to store it in a central workspace where you keep other company documentation, like Notion.

The importance of an employee handbook

We know, we know. You’re likely shaking your head, thinking, “Is it really that important to spend time writing an employee handbook when so many other crucial tasks demand my attention?” Yeah, it honestly is. Here’s why.

Boosting communication

Employee handbooks convey important information about what the company stands for, the values that drive it, and how staffers fit into that vision. You can (and should) explain these things in meetings, sure, but handbooks assemble that information together in one place for everyone to access.

Defining your company culture

Similarly, employee handbooks help build a vibrant company culture — especially when they are crafted via inclusive processes. Handbooks that use consistent language to set rules and expectations are reference points for team members, explaining what makes your company unique and how you plan to sustain that uniqueness in the future.

As Will Fletcher, CEO of LeaseFletcher, explains, “There comes a growth point for all companies that you have to formalize and systematize things like company culture and behavior. Once it’s formalized, you can delegate responsibility to line managers and grow self-directing teams without worrying about whether they are developing siloed cultures.”

Streamlining onboarding

Employee handbooks are key in orienting new hires. Newcomers probably don’t know much about your vision and values, and that’s fine at the start, but to retain employees, they need to both feel connected to the company vision and understand what’s expected of them. The handbook clears up confusion and guides new staff as they learn the ropes.

Supporting recruitment

Talented candidates want to join companies that treat employees well and take company culture seriously. HR sourcing teams can use employee handbooks in talent pool management strategies to hook high-potential candidates.

Outlining behavior expectations

Modern workplaces are governed by codes of behavior. Employee handbooks that include information about etiquette and expectations allow employees to understand what internal company policies require and how they relate to the workplace.

According to Airto Zamorano, CEO of NumanaSEO, “Employees genuinely want to know what’s expected of them and what they can count on. A good employee handbook will give them that clarity. An employee handbook should be a living document that outlines what your company has learned over the years about how to cover the employer and the employees.”

Ensuring compliance

Internal policies should relate to compliance requirements (for instance, regarding discrimination, unfair dismissal, data security, or environmental conditions). Handbooks tell employees how to follow the law.

Achieving security standards

Keeping data and devices secure is critical in modern working life (no, our legal counsel didn’t force me to say that, but he’d be pretty proud). Companies rely on comprehensive security policies to prevent data exposure and cyber attackers. The employee handbook is a great place to explain these policies and reinforce training about safe working practices.

Delivering perks

Companies need places to showcase their employee benefits (and actually encourage the use of parental leave or time off). The employee handbook introduces the benefits on offer and how to claim them. This helps existing staff but can also snare great candidates who read handbooks before accepting job offers.

If you access the benefits section of our Candidate Booklet, here’s a quick look at what that looks like at Toggl.

Essentials for an effective employee handbook

Great employee handbooks follow a fairly standard template. No need to reinvent the wheel here. Remember, you’re not writing a prize-winning novel. Part of the challenge is knowing what elements are indispensable and how much weight each part requires.

Let’s get that out of the way immediately. The key components of a good employee handbook include:

• The mission statement: Most handbooks start with a statement about who you are and what your company does. Keep this short, but aim to inspire. For instance, Disney’s statement is super-concise: “To entertain, inform, and inspire people around the globe through the power of unparalleled storytelling.” Choose a similar phrase that captures your goals and vision.
• Company values: The next section goes into a bit more detail about the values that drive you. A list format works well here. List core values with brief explainers about how employees put them into practice. Amazon’s “Leadership Principles” show how it’s done.
• Employment policies: This section covers basic information about employee rights and benefit plans you provide. For instance, it details your policy on sick leave, time off, parental leave, and health insurance. It also details how to give notice, dismissal policies, and information about retirement plans.
• Equal Opportunities: Right after the employment policies section is a great place to discuss your Equal Opportunities Employer Statement (mandatory for US employers.) Document how you ensure fair hiring and apply non-discrimination plans at work.
• Behavioral policies: Explain how employees should behave at work and how you, as an employer, protect workers from harm. Areas to cover include anti-harassment rules and conflict resolution. Include details about responsible use of social media, too.
• Security policies: Cybersecurity is a separate thing, but you need to include it here. Mention policies about remote work and using public wi-fi, device security, safe data handling, and how disciplinary action works when employees break security rules.
• Dress code: Explain (if you feel the need) how employees can dress at work. Talk about how you accommodate diverse styles for religious or personal reasons. Discuss situations where formality is essential and times when dressing down is fine.
• Work environment: Talk about how to nurture a positive and comfortable work environment. Touch on physical aspects (for instance, ergonomic seating, food and drink, ambient temperature) and social elements (like flexible working, staff away days, or employee discounts).
• Whistleblowing: This section particularly matters in sectors like healthcare or finance, but every business should have confidential channels to report bullying, a conflict of interest, or outright criminality. Explain how to access and use whistleblowing channels and how you keep complaints private.
• The legal stuff: Every employee handbook needs a legal section. This part includes a definition of the employment relationship and how applicable laws influence that relationship. For instance, outline employee rights under federal law like the Family and Medical Leave Act (FMLA) along with state laws on employment.
• Disclaimers: To conclude, this section explains that your handbook does not cover every dispute or legal situation and is not the final word on employee benefits. Tell employees how to request more information and explain that the handbook will change from time to time.

Designing your employee handbook

As with all good reference books, the presentation of your content is important. Appealing visuals and intelligent layout capture attention, providing a “way in” for employees whose attention may wander.

Here are some tips we’ve learned in many years of refining our employee handbook and advising others.

In fact, to kick things off, here is a quick look at our public Toggl Team Handbook, which we host in Notion. As you can see, it is well-organized (shoutout to our talent team) and covers all the basics. For those interested in exploring more, clicking on each section expands it out for (much) more information.

Adopt clear language and avoid jargon

This is super important. Use long words if necessary, but don’t deter readers with complicated language.

Remember, you’re writing a document for every employee. Some readers won’t know what “deliverables” are or how to calculate “economic value added.” Stick to everyday phrases that communicate your message.

Be friendly and approachable

Write your handbook with a friendly, welcoming persona in mind. Use a warm tone, adopt inclusive language, and include a couple of jokes if they suit your brand ethos.

Anchor the text with a table of contents

Getting back to basics, the best way to start an employee handbook is with a thorough table of contents (like our example above).

Many people start writing before they plan their content, but it’s better to create a list of sections and sub-sections. That way, you can give each section the attention it needs and avoid embarrassing gaps.

Follow a logical structure

Think about how the handbook will flow. Ideally, an inspiring introduction (your mission statement and values) should capture attention before leading readers into the nitty gritty. Describe policies and procedures, sticking closely to your content structure.

Make the text as easy to read as possible

Readers should be able to scan every page quickly to absorb basic details. Avoid big chunks of text. Although they may be full of valuable insights and guidance, employees will likely skip densely packed content. Trust us on this one.

Instead, we recommend using bullet points, tables, and infographics to make the text more readable. You might even source photos where they add value.

Store the handbook in an accessible location

Finding the right location for your employee handbook also matters. As remote work expands, printed versions are becoming less common. We prefer to store employee materials on collaboration platforms like Notion.

The great thing about collaboration tools is they make it easy to customize the presentation. You can change layouts instantly, embed video, or add emojis to add a bit of humor.

Take a participatory approach to handbook writing

Finally, it helps to invite participation from every department when drafting the text. HR officers tend to write the handbook. And don’t get us wrong, their insights are invaluable. But, they only offer one perspective. So, run the text past key stakeholders and use suggestions to fine-tune the content.

Participation is great, but ownership matters too. Your human resources team needs to manage handbook writing and updating. Ultimately, HR professionals are responsible for maintaining a living document — not a one-and-done exercise.

Key HR policies to include

It sounds a little dry, but robust workplace policies are the heart of a good employee handbook. After all, the handbook is a source of information. Employees will only return to the text time and again if it helps them navigate everyday work situations.

Essential HR policies include:

• Code of conduct: This is usually a general policy regarding acceptable behavior and performance levels. The code of conduct can be broad but must be clear. It provides a reference point for managing performance and disciplinary processes, so take time to get this right.
• Equal opportunity policies: How you ensure everyone has the same workplace rights, including anti-discrimination policies for promotions and assigning tasks. These policies also cover specific forms of discrimination like race, gender, disability, or age.
• Anti-harassment policies: How you protect all employees against bullying, sexual harassment, and client-facing situations that could expose employees to harassment.
• Leave policies: This section includes rules for paid time off (PTO), parental leave, military leave, bereavement leave, and any other relevant situations. For instance, if you’re a US company, remember to specify paid leave for jury duty! Make clear that leave rules apply to full-time and part-time workers, freelancers, or contractors.
• Performance management: This section explains how you carry out performance evaluations, the assessment tools you use, the frequency of performance reviews, and the expectations you set for high-performing employees.
• Career development: This section defines how pay or promotions are determined. You could combine this section with professional development policies to explain how employees can climb the company ladder.
• Disciplinary policies: This section documents what happens when employees breach codes of conduct or security rules. Be clear about the process (how long it takes, who makes decisions), the range of penalties, and how employees can appeal.
• Health and safety: How you protect employees from harm. Includes workplace safety policies (important in sectors like manufacturing) and measures to safeguard mental health. You could mention safe work hours or benefits like counseling here.

7 employee handbook examples to inspire you

You could fill a library with stellar employee handbooks. But honestly, you could also fill the streets of Tallinn with handbooks that miss the mark. The examples below are case studies on how it should be done (with a few less clear-cut successes on the side). Use them to design a handbook that employees devour from cover to cover.

1. Valve

Video game developer Valve has one of the most famous employee handbooks around. The company made its guide public in 2012 and is happy to inspire similar efforts. But it’s a unique document built around what makes Valve great.

The handbook sets the tone from the start, calling itself “a fearless adventure in knowing what to do when no one’s there telling you what to do.” We like love that. Employees immediately know the guide is designed to empower them, so they want to discover knowledge to help them succeed.

The rest of the guide is styled like a novel but has the elements of a classic employee handbook. It majors in welcoming new hires and settling in (yay!), before going deep on performance reviews by peers and other policies.

The handbook tells readers “how not to freak out now that you’re here.” That’s a great takeaway. Guides should give employees confidence and stability, and that’s exactly what Valve achieves here.

2. Hubspot

Hubspot sticks to a more traditional handbook model with a couple of interesting tweaks. Most importantly, the digital marketing company uses a Slideshare format to store and present employee guidance. The presentation style is a good move, making it easy to navigate each section.

We also love Hubspot’s guide because it focuses on culture. The handbook is “part manifesto, part employee handbook, and part diary of dreams.” It skilfully blends the brand’s story with concrete policies and inspirational quotes — a textbook example of accessible writing.

3. Trello

Project management platform Trello takes a different approach that makes perfect sense. Instead of creating slides or a PDF, Trello has built a site using its project management interface. It looks like a project dashboard (or close enough), giving readers an on-brand experience.

Otherwise, Trello’s content follows a familiar employee handbook template, with leave policies, terms of employment, and instructions for arranging business travel. Readers can scroll through benefit tabs or check out “the serious stuff,” like termination rules or pensions.

4. Netflix

Netflix starts strong with a bold and inspirational mission statement and four core principles that empower employees to enjoy “the best work of their lives.” This paves the way for a text-heavy but not-too-long handbook that links those core principles to company policies.

Netflix doesn’t score well in terms of clarity. There’s no contents page to find time off allowances, for example. But it does create a sense of excitement and community, and it ends with an inspiring quote from The Little Prince — huge points for that.

5. The Zappos Culture Book

Fashion retailer Zappos takes an offbeat approach to handbook writing. The Zappos Culture Book is a collaborative text written by members of the “Zappos Family” (i.e., company employees).

That may be why you find statements like “We value being fun and being a little weird.” Underneath the slogans lies a quirky but energizing statement of what it means to be a Zappos team member.

Despite this, the Culture Book format is a little light on detail. If you choose this model, you may need to write a second text featuring details about equality and inclusion policies or health benefits.

6. Facebook

In 2015, Facebook distributed an attractive ring-bound handbook to all staff members. Heavy on cultural explanation, the handbook included motivational messages like, “We don’t build services to make money” and “Changing how people communicate will always change the world.”

Facebook’s positivity was great, but the content was a little vague about employee behavior and legal issues. Within a few years, the company distributed a less appealing code of conduct to employees after several privacy scandals.

Ultimately, Facebook’s story is another great reminder that substance and style are equally important.

7. Nordstrom

This last example is a bit misleading as it’s based on a myth. Some people believe luxury retailer Nordstrom’s employee handbook has a single line: “Use best judgment in all situations. There will be no additional rules.”

If that were true, you wouldn’t be reading this. You’d be handing out inspirational slogans to employees. But it’s not; far from it. In reality, Nordstrom maintains a 7,600-word “policy guide” packed with rules and regulations on standard employment issues.

Navigating employment laws and handbook validity

Before you start writing, we need to mention the legal side of employee handbooks again. Yawn, sorry! But this is HR, after all. It can’t all be about imaginative storytelling or captivating quotes.

However, it is important to note that while this is important, handbooks are not technically enforceable parts of an employment contract. Employment law experts advise using separate contracts to enforce codes of conduct or behavioral policies.

So, what is the legal role of an employee handbook?

Mostly, employee handbooks define the benefits employees expect and outline the conduct demanded by employers.

Some US states allow employees to make legal claims based on promises made in handbooks (including California). For example, employees in Minnesota have successfully claimed PTO benefits contained in handbooks that their employers subsequently refused to honor.

If you make a promise in your handbook, expect employees to call you on it. Companies gain nothing by making empty promises to their workers. Honesty and transparency are always the best policies.

At the same time, you do need to update handbooks in line with employment law. If your handbook falls out of step with workers’ compensation or anti-discrimination statutes, the result could be expensive lawsuits.

The role of disclaimers

Every employee handbook needs a disclaimer. Usually attached at the end of the document, the disclaimer explains that the handbook is not a binding contract.

Without this section, your employee handbook can become an enforceable contract. It probably contains specific policies, benefits, and perks. Unless you state otherwise, employees could argue these are contractual obligations.

Don’t rely on your disclaimer to void previous commitments. Your promises should be accurate and honest. The disclaimer simply gives you more flexibility to change the handbook as circumstances change.

Is building an employee handbook for small businesses any different?

Scale is another issue to think about before putting pen to paper. Employee handbooks that work for a gigantic corporation may not work for small businesses.

Small businesses often have informal procedures, relying on face-to-face interactions and trust. They have fewer resources to invest in HR management or producing in-depth employee literature.

Legal resources may also be an issue. Small companies lacking legal advice could write poorly worded handbook promises, leading to costly legal disputes.

Think hard about whether you need to create an employee handbook, but don’t discard the idea immediately.

Small companies with limited resources can and probably should produce high-quality handbooks. Handbooks orientate new hires and promote a sense of community in start-ups. They prove that you take your obligations seriously and are committed to systematizing essential HR processes.

We recommend using employee handbook templates to streamline the writing process. Templates cover every essential area, making it easier to get the basics right.

Introducing new hires to the handbook

Finally, we need to think about how employees relate to the handbook during the onboarding process. Can you encourage newcomers to read and absorb critical information, or will your handbook be a dead letter?

We find it’s a good idea to introduce new hires to the handbook directly after they accept job offers. At that moment, new hires are eager to learn about their company, and they often want to hit the ground running without needing to ask their mentors a hundred questions.

If you want, create digital tests to assess knowledge of company policies. Tests are great for ironing out simple issues like pay periods or sickness benefits. They also suit the remote employee onboarding process. Just be sure to combine them with orientation meetings to create a positive vibe as you discuss the contents of the handbook.

Use these interactions to reinforce your brand vision and describe perks like reimbursement for gym membership or travel. Above all, onboarding meetings introduce the handbook as a go-to resource, not just a list of rules.

Get this right, and your employee handbook will help new employees contribute and thrive. If not, the time spent crafting your employee manual could be wasted.

Building an effective employee handbook as a living document

We’ve reached the final chapter. By now, you should know the essential parts of an employee handbook and policies to include. Hopefully, our tips about structure and style have sparked your imagination.

No doubt you’re ready to go. But wait a moment to plan and gather your thoughts. Remember the core goals of your handbook are to:

• Set clear expectations for employees about benefits, career development, and how to behave.
• Foster an enjoyable and creative work environment by telling a compelling brand story.
• Take care of critical legal and compliance areas, just to be sure.

Keep those goals in mind when structuring the text and adding content. But that’s not all.

Remember that the employee handbook is a dynamic, living document. It reflects who you are as a company and what it means to work there. It evolves with your company, documenting the values that drive you and where you are going.

Welcome suggestions from new hires and veterans about improving or promoting the handbook, and schedule meetings to update the text as you embrace new regulations or cultural norms.

It might sound cute, but it helps to see the employee handbook as a colleague. You treat colleagues respectfully, develop their potential, and consult them constantly. From that point of view, your handbook is no different.

Good luck with your handbook writing project. You’ve got this. Follow our tips and engage your creativity. If you need more inspiration, be sure to follow us on LinkedIn. We’d love you to join our community as we build businesses of the future.