In my last HRTools.com Insight, I addressed common mistakes that I see companies make in developing and maintaining employee handbooks. For instance, employers sometimes make the mistake of not auditing content to make sure it is in compliance or otherwise up-to-date. If employee-handbook content is not regularly audited and updated, employers can face some unintended and costly consequences.
To help illustrate, here is a business situation—one that is not all that uncommon: I worked with a company that had a seriously outdated policy and procedures manual. I was also helping this organization develop an employee handbook. At the same time, they had two sister organizations merging into one entity. Prior to the merger, one of the companies—a smaller one—was tucked away in a remote location. As can typically happen, the remotely located company took advantage of the situation by allowing itself more leeway in interpreting company policies. In other words, they ran things their own way.
As a result, I ran into a lot of resistance while helping these two organizations combine their policies. In a merger scenario, both organizations should end up following the same policies, practices and guidelines. In this case, many of the managers had never even read the policies, and they were accustomed to ‘winging it.’ Prior to the merger, when confronted with a problem or issue, they figured it out on their own and they didn’t want to give up those liberties.
On top of that, the smaller company enjoyed a richer benefit plan so those employees viewed related changes as losses. Effectively they perceived the merger as taking away certain privileges and benefits, and we know that never sets well. They liked things the way they were, and they relied on a 13-year old, outdated employee handbook. Not only that, when they wanted to make changes, they simply revised it in ways that suited them. So the situation was serious.
Where did I start?
First, I researched all the updated laws and worked with all levels of management to ensure the accuracy of the actual procedures. We then collaborated to determine what was actually being done before it was documented and put in writing. For every procedure, I asked the question: “Is this how you really do it?”
We wrote the policy and procedures manual and, then after completing it, we created the employee handbook. Our next step was to provide managers and supervisors with training so they understood how to apply policies and procedures fairly and consistently.
A critically important point I stressed was that all the old employee handbooks must be destroyed. Although the temptation was great, I emphasized that they must not look back at those old handbooks because their use was risky and could lead to serious and costly problems. This step was a difficult one, and one similar to the grieving process, in that they were losing part of their past. But they needed to let go of the old and familiar ways that could lead to noncompliance issues or even unlawful practices.
Eventually, it all worked out and both companies successfully merged. The organization assured me that they would keep their new employee handbooks updated, and hopefully they are!