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Employee handbooks have changed dramatically since I first created one and I’ve learned a lot about the importance of employee relations in that time.

Today, employees expect handbooks to not only be informative (defining every company policy) but also engaging, attractive, and easier to digest than the 60-page behemoths of yesteryear.

That length is perhaps why an estimated 60% of employees avoid reading employee handbooks.

So, without further ado, let's dig into what a modern employee handbook can achieve, what to include in it, and how you can ensure it meets its goals.

What Is An Employee Handbook?

An employee handbook serves as a guide for the whole organization outlining the company's policies, procedures and expectations, ensuring a clear understanding of workplace norms and legal obligations.

The handbook typically includes sections on company culture, core values and mission, as well as practical information like work hours, dress code and leave policies.

Below, I’ve split the handbook into the following sections with guidance on what to include in each section:

  • Employee resignation and termination.
  • Welcome and introduction
  • Employment basics
  • Workplace policies
  • New hire orientation information
  • Personal and career development
  • Employee rewards, benefits, and perks
  • General workplace information.

What To Include In An Employee Handbook

In the past, an employee handbook was mostly used as a human resource (HR) policy and procedures manual.

Today, employee handbooks typically contain a mix of different elements essential for existing employees, and new employees during orientation and onboarding.

Welcome And Introduction

Most orgz start the employee handbook with a welcome letter—or even better, a welcome video like the one below from Uber—from the founder, CEO, or leadership team.

This provides new or prospective team members with valuable insight into the company, why it’s in business, what part employees play in the organization’s success, and the purpose of the employee handbook itself. 

You can find an example new employee welcome letter in our free employee handbook template at the end of the article.

Company And Culture Overview

This section of your handbook is important for helping new or prospective employees understand more about your company’s mission, culture, and story. 

Your handbook should incorporate the following elements, and the order is up to you:

  • Vision statement: What is the purpose of your company; why do you exist?
  • History and timeline: Where did your company come from, and how has it evolved?
  • Mission statement: How will your organization achieve its vision and goals?
  • Core values: What organizational beliefs guide people’s behaviours and decisions?
  • Organization structure: How are teams and employees organized?

Zappos’ Culture Book is a great example of how an employee handbook can be used to communicate the real essence of who they are to potential employees.es.

a page from the Zappos employee handbook, showing an example of creative imagery being used.
Example of using creative imagery to communicate the culture at Zappos
a page from the Zappos employee handbook, showing an example of creative imagery being used.
Example of using creative imagery to communicate the culture at Zappos

Note: This is the portion of the employee handbook that organizations will generally tend to make public.

Employment basics

The employment basics section provides workers with a clear understanding of their working relationship with the company. 

It outlines key employment classifications and expectations to ensure consistency and transparency.

  • Employment classifications: Classification of full-time, part-time, temporary, and contract employment, eligibility for benefits based on classification, probationary periods, if applicable, etc.
  • Equal opportunity and non-discrimination: A statement that the org is committed to fostering a diverse and inclusive workplace including equal employment opportunity (EEO) laws, policies against discrimination and harassment, and reasonable accommodations for employees with disabilities.
  • Attendance and work schedules: Standard work schedules (e.g., office hours, shifts, or remote work options), attendance expectations, including policies on lateness and absences, procedures for requesting schedule changes or leaves of absence.

Workplace policies

Many companies have their detailed workplace policies and procedures in a separate manual, and only touch on some of the most important ones in their employee handbook. 

This especially makes sense if the purpose of your employee handbook is to promote your company culture, rather than list out a bunch of rules.

If you’re not sure which HR policies to include in your handbook, here some to get you started:

  • Diversity, equity, and inclusion
  • Workplace safety and health
  • Harassment and sexual harassment
  • Remote work and telecommuting
  • Social media
  • Paid time off (PTO), vacation time
  • Leave eligibility e.g. sick leave, jury duty.

New Hire Orientation Information

This part of your employee handbook will cover what a new team member can expect on their first day and in their first week(s) of work, such as:

  • Office/facility tour
  • Team introductions
  • Dress code (if applicable)
  • Training schedules
  • Tools and resources
  • Key contacts.

For example, HR software company People includes an overview in their great employee handbook of what new team members can expect on their first day and in their first month.

A page from the People employee handbook, showing an example of an entertaining and informative overview of a new hire's first day
Example of an entertaining and informative overview of an employee’s first day at People.

Personal and career development

According to LinkedIn’s 2018 Workforce Learning Report, a whopping 93% of employees would stay at a company longer if it invested in their careers. 

Bottom line, L&D is important for retention and of course ensuring your workforce has the skills needed to drive long term organizational success.

This section of your employee handbook should cover things like:

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Employee rewards, benefits, and perks

This is your opportunity to promote the compensation and rewards your organization offers to employees you want to hire, and get new employees educated and excited. 

This section can include information such as:

  • Rewards philosophy: For example, do you pay at the top of the market?
  • Compensation elements: Salary, bonuses, stock options, hourly overtime, etc.
  • Compensation reviews: How often, what’s the process, and impact on compensation.
  • Benefits programs: Health insurance, wellness programs, RRSP / 401(k), etc.
  • Perks: Car allowance, expense account, technology benefits, fitness allowance, etc.

As an example, in their Employee Culture Guide, Netflix does an excellent job of explaining their rewards philosophy and how annual compensation reviews are handled.

General Workplace Information

TThis can be a catch-all of all the other information you feel is important to share with new, existing, and potential employees that will educate them on the workplace culture and get excited about working for you, such as:

  • Office and facility information
  • Work environment e.g. cubicles, offices, eating areas, shared spaces
  • Recreation facilities e.g. ping pong tables
  • Team events e.g. holiday parties, summer BBQs
  • Bringing pets to work.

The Valve Employee Handbook is a great example of how to give people a strong understanding of what it’s like to work there.

Employee resignation and termination

This section outlines the procedures employees and employers must follow when an employment relationship ends. It ensures a smooth transition while maintaining professionalism and compliance with legal requirements.

  • Resignation procedures and notice periods: The process for when an employee decides to leave the company e.g. submit a formal resignation letter to their manager or HR, provide a notice period etc
  • Final pay and benefits handling: The process for issuing final paycheck, continuing benefits, retrieving equipment etc.
  • Involuntary termination policies and protocols: Why an org might decide to terminate someone including performance issues, violation of company policies, gross misconduct, or company restructuring or layoffs.

4 Reasons Why An Employee Handbook Is Important

The employee handbook is a repository of information about the organization that existing and new employees can reference and learn from. 

According to a poll conducted by People Managing People on LinkedIn, 71% of respondents indicated that their organization already has an employee handbook, while 19% responded that they had plans to develop one, or were in the process of developing one.

survey results showing whether organizations have an employee handbook or not
PMP Survey of LinkedIn Members on employee handbook usage.

An employee handbook can be extremely beneficial to team members and the entire organization in several areas.

Successfully Onboard New Employees

An employee handbook is a critical tool for new hire orientation and onboarding. Research by Glassdoor found that organizations with a strong onboarding process improve new hire retention by 82 percent and productivity by over 70 percent.

An employee handbook is used to educate new employees on the rules and processes that govern the employment relationship, and the rights, responsibilities, and expected behaviours of the employer and the employee.

It’s also an important tool for new team members to understand everything from what their first weeks and months of work will be like, to what they should wear to work (note: be careful with dress codes!).

For this reason, it's not a bad idea to disseminate an employee handbook during the preboarding process. Attaching it to the welcome letter is a good tactic.

Build A Strong Company Culture

An employee handbook is much more than just an HR policy manual. An employee handbook gives you the opportunity to define in words and images your company culture, and communicate it to new and existing employees.

A key piece of building a great culture is to articulate your company’s vision, define the core values and beliefs of your organization, and describe the types of behaviours and actions you expect from team members to support those values. 

Patagonia does an excellent job of this in their employee handbook, where they describe their purpose as, “We’re in business to save the planet”, and their company mission to, “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.

Attract And Hire Great People

A great employee handbook can create a competitive advantage for organizations competing to hire top talent. Many companies have made their employee handbooks public, and have formatted them in innovative ways to get potential employees eager and excited to join.

For example, Valve publicly released its employee handbook in 2012 and generated significant positive press with its unique style and colorful descriptions of the company’s work environment.

You can use your employee handbook to articulate and promote what makes your organization special, unique employee benefits, and your position on current issues such as equal employment opportunity, non-discrimination, and COVID-19 safety.

Meet Legal And Employment Law Requirements

An employee handbook helps you document and organize information that is directly related to the employment contract the employment relationship e.g. at-will employment), and applicable employment law (provincial / state laws, federal laws).

For example, employment legislation like the Family and Medical Leave Act (FMLA) in the United States, and the Employment Standards Act of BC in Canada, set out the minimum requirements of employers with respect to many of these policies.

Who Is Responsible For Creating An Employee Handbook?

Human resources typically coordinates the creation of an employee handbook. However, in organizations that don’t have an HR team or person, that responsibility may fall to a:

This person would be responsible for collecting the required information through interviews with key employees; research into existing policies and procedures; and research into industry best practices.

Author's Tip

Author's Tip

The person responsible for creating the handbook may not be the same person who actually writes, formats, and publishes it since this often requires strong copywriting, content creation, and graphic design skills. A good marketing agency or PR firm can help take your handbook to the next level!

What Is An Employee Handbook Committee?

A handbook committee may be found in larger organizations and often includes executives, leaders, and individuals from across the organization. The handbook committee is typically responsible for:

  • Determining the strategic purpose of the handbook;
  • Providing high-level guidance on content and tone;
  • Deciding how the handbook should be used by the organization;
  • Overseeing handbook creation; and
  • Gathering all the handbook content.

What Should I Call My Employee Handbook?

“Employee handbook” is most commonly used because it’s more widely understood, while titles like “employee manual” and “HR policy manual” are less often used because they sound too bureaucratic, rigid, and formal.

What you call your employee handbook will be one of the decisions you must make along the way. This decision will be guided by what you feel is the main purpose of the handbook itself, your company culture, and your own personal preference. 

For example, many organizations, such as Netflix and HubSpot, refer to their handbooks as “Culture Codes” or “Culture Guides”, to indicate the purpose of the handbook as a culture-building tool, rather than a company policies and procedures manual.

3 Best Practices For Creating A Successful Employee Handbook

An effective employee handbook is one that engages and educates new and existing employees, motivates potential employees to join the organization, and grows both employees and the company.

The following are some of the key success factors that can make or break a great employee handbook:

1. Engaging and organized content

Like a good novel, you need to make sure the content of your employee handbook is well-written, interesting, and hopefully even entertaining at times. 

The structure, and the order in which information is presented, should be logical and intuitive.

Include hyperlinks (for digital versions), a table of contents, and an index to make it easier for employees to find the information they’re looking for, and a glossary to help someone quickly reference company-specific acronyms and jargon.A good example of this comes from GitLab.

A screenshot of the Table of Contents for Gitlab's employee handbook.
Gitlab does a good job of structuring their employee handbook.

Finally, use content from the many employee handbook examples referenced throughout this article as a starting point to develop your own content, rather than starting from scratch. 

However, be aware of copyright rules, particularly if you’re going to publish your handbook publicly.

Compelling look and feel

The “look and feel”, or the tone, of a handbook should align with the company culture and values. The right tone can work together with engaging content to create an informative and entertaining resource that people actually want to read.

The Valve handbook is a great employee handbook example that uses elements such as:

  • Conversational tone: use contractions like “it’s”, rather than “it is”, to make the material more accessible and easier to read.
  • Photos and images: include images of things like actual employees and company workspaces to help new employees understand the organization better.
  • Creative visuals: use infographics, fun cartoons, and bulleted lists where possible to leverage the brain’s love of pictures and visuals. 

Humour: a little light-hearted humor can go a long way toward helping ease people into topics that aren’t as interesting, but are necessary to include.

A page from the Valve employee handbook, showing an example of creative, light-hearted visuals.
Example of creative, light-hearted visuals and content from the Valve employee handbook.

For example, consider prefacing a parental leave policy with something light and fun, like: “Expecting a little one? Having a baby is a proud time for parents, so it’s only fair that you both get some time off to enjoy the experience and recuperate.

Easily Accessible 

You could create the greatest employee handbook in the world, but it wouldn’t matter much if no one knows where it’s located, or if the format makes it difficult to distribute.

While you want to give people the option of printing a handbook, it should ideally be available primarily in a digital format, and easily accessible on your company’s intranet or a shared network drive.

Try leveraging employee handbook software from companies like AirMason and Blissbook to help you create and easily maintain a visually compelling handbook.

Or get creative like software company Trello, which uses their own software platform for their employee manual.

A screenshot of Trello's employee handbook, hosted using Trello's own software.

Related Read: Thinking About An Employee Intranet? Read This First

Constantly Updated

Your organization is constantly changing, so your employee handbook should too.

Treat your handbook like a living document that requires regular maintenance.

Solicit feedback from new employees as they go through orientation on what can be added or improved and keep tabs on the latest HR trends and best practices in employee onboarding and stay on top of the latest developments in employment law to know which company policies and procedures might need to be updated. 

9 Steps To Create An Employee Handbook

Rome wasn’t built in a day, and neither will be your employee handbook. Creating a great employee handbook will take time, patience, and support from people across the organization. 

Following are the steps you, or your handbook committee, will need to take to launch your new handbook:

1. Get buy-in from senior leadership

If you’re not the senior leader in your organization, your handbook will be dead in the water without their approval and support. 

Actionable tips:

  • Present the business case—Highlight how the handbook will improve onboarding, compliance, and employee engagement.
  • Show examples—Use best practices from industry leaders to illustrate its value.
  • Secure a champion—Having an executive sponsor (e.g., HR Director, COO) can drive adoption.

2. Decide on the purpose

Figure out your vision for the handbook, and the goals you’d like it to achieve, which will drive many of your content and delivery decisions.

Actionable tips:

  • Define whether it’s primarily for compliance, culture-building, or employee reference.
  • Consider audience needs—new hires may need a more engaging format, while seasoned employees require easy access to policies.
  • Align the purpose with company values and employer branding.

3. Research the legal requirements

Avoid legal pitfalls and work with your employment lawyer if you’re unsure of what you can and can’t put in your handbook. 

Actionable tips:

  • Consult an employment lawyer or HR compliance expert to ensure accuracy.
  • Stay updated on labor laws (e.g., FMLA, ADA, EEO, overtime regulations) that affect workplace policies.
  • If your company operates in multiple countries, consider localized versions of the handbook.

4. Review best practices and examples

you’ve already done some of this by reading this article! Also, check out the great employee handbook examples listed throughout.

Actionable Tips:

  • Analyze industry leaders (e.g., Netflix, Buffer, GitLab) and note their approach to culture, tone, and accessibility.
  • Use real-life employee feedback to understand what information employees actually need.

5. Create the content and structure

Gather all the information you want to include, figure out how to organize it, and get writing!

Actionable tips:

  • Use simple, concise language—avoid legal jargon when possible.
  • Break content into sections (e.g., Employment Basics, Workplace Policies, Benefits, Code of Conduct).
  • Include examples, FAQs, and real-world scenarios to make policies relatable.
  • Add an index or search feature if it’s a digital document.

6. Decide on format and access

Determine if your handbook will be published as a slide deck, web page, etc.; if it can be downloaded/printed; and where people can access it.

Actionable tips:

  • Choose a format: PDF, intranet page, interactive website, or slide deck.
  • Determine how employees will access it—via company email, HR portal, or printed copies.
  • Make it mobile-friendly if your workforce includes remote or field employees.

7. Review with leadership and legal counsel

Get the final ok and sign-off from the powers-that-be.

Actionable tips:

  • Conduct a cross-functional review with HR, legal, and department heads.
  • Get final sign-off from leadership to establish authority.
  • Prepare a communication plan for introducing the handbook to employees.

8. Publish and celebrate

Get the handbook out there, have a little party, promote it at your next all-hands meeting, and get people using it!

Actionable tips:

  • Announce it at an all-hands meeting or company newsletter.
  • Encourage managers to walk teams through key sections.

9. Review and maintain regularly

Oh, you thought you were done when you published it? Think again… :-)

Actionable tips:

  • Set a review schedule (e.g., quarterly or annually).
  • Assign an HR team member to track policy updates and revise accordingly.
  • Gather employee feedback to improve clarity and relevance over time.

Free Employee Handbook Template

Right here! We’ve created a Word doc that you can use as a guide to create your own handbook. It’s a skeleton of an employee handbook for a fictional company, FACT Technology, and includes a bunch of sample content to help get you started and the creative juices flowing!

But before you jump in, remember the following: 

  • The tone and content of your employee handbook should fit your organization.
  • The template contains only text. Your final handbook should not.
  • The template is a Word document. Your final handbook can also be, but also consider using web-based alternatives like AirMason, which you can upload your Word doc into.

Download the template below!

Get our employee handbook template!

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What Do You Think?

What’s one of the best employee handbook examples you’ve ever seen? What made it so great? What was the worst one, and why? What’s the most important content you think should be included in the first version of a handbook, and why?

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Mike Gibbons

Mike has extensive experience in sales, marketing, and product strategy; organizational and team development; and business growth and operations. He's held various senior leadership positions in the technology industry, and in 2016 participated as a lead member of the deal team responsible for the sale of Point Grey Research to FLIR Systems for USD$256M. Mike is guided by his deeply-held beliefs in connection, curiosity, humour, empathy, and honesty. Since leaving the corporate world in 2018, he's provide fractional executive and growth and strategic planning advisory services that have helped several early stage companies mature, grow responsibly, and live true to their values.