Issue No. 04 | Do Small Businesses Need an Employee Handbook?

Not gonna lie—I love me a good ol’ employee handbook! It’s one of my favourite things to create.

BUT…do you actually need an employee handbook as a small business?

Yes.

Small business owners often wonder whether they really need an employee handbook—or if it’s something only big companies bother with.

And while I’m quick to say yes, you do need an employee handbook, it’s not in the same way you need to pay your team members—you definitely need to do that.

As a small business, you need an employee handbook like you need coffee, Wi-Fi, and a good accountant—sure, you can technically get by without one, but everything just runs smoother when you have one.

If you’re running a small business, especially if you’re just starting out, an employee handbook might sound like overkill. And while you could probably get by without one, you’re much better off having one (even if it’s just a simple version).

Now, let me convince you why you should have an employee handbook for your small business.

What an Employee Handbook Isn’t

Let’s start with what a handbook isn’t, because there are a few misconceptions (and even some misuses) floating around out there.

An employee handbook is not a rulebook.

It’s not where all your workplace policies go to die, or a list of everything your team can’t do.

It’s not a catalogue of all the ways someone can get in trouble.

It’s not a binder full of dotted i’s and crossed t’s that sits on a shelf collecting dust.

And while an employee handbook is an important part of running a small business, it’s not technically a legal requirement (but it can save your butt…more on that later).

So, What Is an Employee Handbook?

Think of your employee handbook as a guidebook for your business — it paints a picture of how things run, what you expect from your team, and what they can expect from you.

A well-done employee handbook is your chance to tell your team, in your very own words, all about your company’s values and culture, the perks of working for you, and exactly what they’ve signed up for. All this, while also covering the practical stuff like policies, procedures, and expectations (yes, there should be some policies in your employee handbook).

Think of it as the sweet spot where information and practicality meet culture and personality — all hanging out together in one place.

And while it’s incredibly helpful for onboarding new hires, it’s just as valuable for long-term employees who need a refresher — you know, the forgetful types (hi, it’s me🖐🏻)

And if you’re thinking…does anyone actually read them? When I worked as an in-house HR Manager, employees would regularly say things like, “I was looking in the handbook and noticed…” or “the handbook says…”

So yep, you betcha — they do look!

Why You Need an Employee Handbook as a Small Business

I’m going to guess that as the owner of a small business, you’re already juggling about twelve jobs at once. You probably wear all the hats — marketing, finance, operations, customer service. And I’m sure there are days you probably feel like a part-time fire fighter putting out all the little fires that come up in the course of day.  

An employee handbook helps you bring a little order to the chaos and organize at least part of the people side of your business. Here’s why it’s worth having one:

An employee handbook tells the story of your business

Your handbook should tell the story of where and why you started, how you got to where you are, and where you are off to next. In your own words it should give your team a real sense of the culture and what is it’s like to work with your business. It’s your chance to show some personality while setting the tone for your workplace.

An employee handbook keeps everyone on the same page. Literally.

As your team grows, your expectations, standards, and processes stay consistent (with the occasional tweak here and there, of course). Everyone gets the same information, no matter when they join the team. And that means fewer mixed messages.

An employee handbook dramatically cuts down on repeat questions

Ever find yourself answering the same questions over and over? (“When do benefits kick in again?” “How do I book time off?” “What’s our holiday schedule?”) A handbook puts all those answers in one place so you’re not stuck on repeat.

Full disclosure: there’s no official cure for repeating yourself as a business owner — it’s part of the gig — but this definitely helps.

An employee handbook saves your butt

While not technically a legal document, having your key policies in writing can protect you if disputes or misunderstandings come up. It’s a smart layer of protection — like an insurance policy for your people practices.

And a little bonus… For all my aesthetic-focused business owners out there — it’s like having your very own internal catalogue or magazine showcasing your business, which I think is pretty cool.

Okay, so now that I’ve convinced you that your business needs an employee handbook —what actually goes in your handbook?

What to Include in Your Employee Handbook

Now that we’ve covered why you need one, let’s talk about what actually goes in it.

The good news? Your employee handbook doesn’t have to be a hefty 50-page document written in legalese or corporate-speak. In fact, quite the opposite. Your handbook should sound like you. If it doesn’t? Don’t put it in.

So, here’s what you should include:

• The Welcome Section. Start with a warm welcome and a quick intro to who you are, what your business is all about, and the values you stand by. It sets the tone for everything that follows. This is the section where you’d add a little history of your company.

• The Need-to-Knows. This is where you cover the important day-to-day details. Things like booking time off, scheduling, and payroll and benefits information. Basically, the things employees are most likely to ask about on day one.

• The How-We-Work Section. Outline expectations for communication, behaviour, and teamwork. This isn’t about laying down “rules” — it’s about setting standards that help your team thrive and avoid awkward “I didn’t know that” moments later.

• The Fun (but Important) Stuff. Include the things that make your business yours. Maybe it’s a section on your team rituals, how you celebrate wins, or your stance on flexibility and work-life balance. This is where your culture shines through.

• The Legal-ish Bits. You’ll want to include your essential policies like health & safety, code of conduct, respectful workplace, bullying & harassment. Keep them clear, to the point, and human—no legal mumbo-jumbo. To avoid the handbook getting too heavy (both literally and figuratively), you can summarize the important details and refer them to the full policy elsewhere.

• The Sign-Off. Always wrap it up by having employees sign off that they’ve read and understood the handbook. It’s not about being overly formal; it’s about making sure everyone knows what’s expected of them.

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So if you don’t already have an employee handbook, it might be time to give it some thought.

And if you are ready to dive in, start simple: open a blank doc and start jotting down notes. Nothing fancy. Just write out the questions you answer on repeat, a few bullet points about your company history, or a list of all the perks and benefits of working with you and your team.

Don’t overthink it—start small, keep it human, and refine as you go. Your business (and your future self) will thank you.

And, as I mentioned at the start, I love creating employee handbooks. We all have that one thing we geek out over, and for me, it’s this. So if you’d like support, I offer handbook creation as a done-with-you service. If you want to chat more about what that looks like and how I can help, go ahead and click here to set up a call with yours truly.