Every nonprofit should have an employee handbook. An employee handbook provides objective guidelines for many areas governing the conduct of employees and the smooth operations of the organization. Even if the organization has just a handful of employees, an employee handbook is necessary.
But it’s not enough to draft a handbook and leave it at that. Employee policies must be shared with your team. Reminders are often necessary. And, like it or not, reinforcement is critical. Without reinforcement, employee policies are meaningless.
10 Items to Include in Your Employee Handbook
The SBA recommends including the following topics in an employee handbook:
- Disclaimers: Disclaimers generally appear at the beginning of the handbook and define the basic terms of the employee- employer relationship. It includes a statement that the handbook may be updated and changed at any time. It also defines what is called an ‘at will’ employee relationship, meaning that the organization may, at its discretion, terminate employment at will.
- Non-disclosure and conflict of interest statements: These protect the organization against employees sharing confidential information with external parties or competitors.
- Anti-discrimination policies: Anti-discrimination policies make it clear that you intend to comply with the Americans with Disabilities Act. These policies set forth the organization’s commitment to equality for all regardless of disability.
- Compensation: Salary, salary reviews, overtime hours, and other compensation should be clearly outlined in the compensation portion of the handbook.
- Gift policies: If your organization does not allow employees to receive gifts from members or donors, include this information as well.
- Work schedules: Office hours, days that the office is closed for holidays, and other information pertinent to work schedules can be included too.
- Vacation and sick time: List the amount of vacation and sick time available to employees. Include information on how additional time accrues, if any, and how employees should call in sick or request paid leave.
- Health and safety: Employees should know how to report health and safety violations and problems. The Occupational Safety and Health Administration provides more information on compliance with relevant health and safety laws.
In addition to what the SBA recommends, there are some additional policies that you may wish to add:
- Drug and alcohol policies: Drug and alcohol screening may be part of your workplace. You should also state clearly your organization’s no-tolerance policy for alcohol or drug use on the job and include information on how to report violations. Particularly considering I-502, which legalizes recreational use of marijuana in Washington State, it is crucial that you clearly define expectations with respect to drug/alcohol use on the job. To enforce any drug policy, you should also identify what types of testing will be conducted: 1) pre-employment; 2) reasonable suspicion; 3) post-accident; or 4) random.
- Anti-harassment policy: Define what constitutes unlawful harassment and discrimination, and identify all protected categories under federal, state and local law. Identify the person to whom such complaints should be brought and how they will be investigated. Make sure to specify that retaliation will not be tolerated.
Many organizations create an employee handbook that lacks some important policies. Be sure that your nonprofit includes drug and alcohol policies, anti-harassment policies, anti-discrimination information, and the all-important disclaimer. This information both complies with the law and is vital for safeguarding your nonprofit and employees.
An employee handbook may not seem all that important if you have just a few employees, but it’s just as important with two employees as it is with 200. Be sure to update your employee handbook as necessary, share it with your employees, and use it as a valuable resource to guide employment practices at your nonprofit.
Welter Consulting
Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you improve and grow your accounting practice. Please contact Welter Consulting at 206-605-3113 for more information.
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