HR Handbook vs. Employee Handbook: What's the Difference?

What is the exact difference between an Employee Handbook and an HR Policy Manual – and does your organization need both?

It's a good idea for companies to develop both an Employee Handbook and an HR Policy Manual, although they cover many of the same topics, these documents serve different purposes.

In this article, we'll closely examine the difference between an HR Policy Manual and an Employee Handbook.

What is an HR Policy Manual?

An HR Policy Manual, also known as a Human Resources Policies and Procedures Manual, is an internal document that encompasses all company policies. Sometimes referred to as "HR Operations Manuals" by organizations, these policies serve the management of the employee team and cover all details regarding employee management.

These policies govern the relationship between each employee and the organization from one side, and also between each employee and their supervisors, peers, and managers from the other side; therefore, HR manuals and handbooks should include details of the company's best practices for implementing each specific policy.

Managers, supervisors, and team leaders should read HR manuals and handbooks, and they should also refer to the manuals before making any HR-related decisions. Reading the manuals should guide them to the correct decision and the best way to implement it.

What is an Employee Handbook?

An Employee Handbook serves as a simplified version of the broader and more comprehensive policies found in an HR Policy Manual. It should include company policies relating to employees, encompassing all procedures that employees need to follow. Procedures should be straightforward and easy for employees to understand and access their rights and benefits. For example, procedures for requesting annual leave should be included.

Benefits of creating or reviewing your HR Manual? If your company doesn't have its own HR Manual, you should create one immediately for the following reasons:

• Reducing legal risks that incorrect HR decisions might cause.

• Enhancing and streamlining organizational performance.

• Paving the way for controlled business growth and expansion.

• Ensuring business compliance with regulations.

In short, the importance of an HR Manual lies in informing everyone of what to do in different situations, as well as the best approved way of doing so. If all manuals and handbooks are already present, be aware that they need regular review. Reviewing your HR Manual will ensure that current policies and procedures still meet your business needs, and reviewing your Employee Handbook will ensure that employees are getting the most efficient use of it.

How does DocSuite benefit you?

 DocSuite's AI-powered HR system effectively serves your HR Manual and Employee Handbook by providing an easy-to-use interface for accessing documents and information. The system organizes documents hierarchically, making it easy for managers and employees to find specific policies and procedures.

Using DocSuite HR, you can quickly and efficiently update your HR Manual to ensure it complies with the latest changes in company policies. Users can easily search through documents, reducing the time required to find necessary information.

For the Employee Handbook, DocSuite's AI-powered HR system can provide a centralized interface for employees to access all the procedures and rights they need, making it easy for them to find the latest information regarding their rights and duties.

In this way, DocSuite HR serves the company by improving access to information, facilitating updates, enhancing HR management effectiveness, and fostering effective communication with employees.

What's the difference between an HR Manual and an Employee Handbook?

An Employee Handbook contains a subset of policies and procedures from the HR Policy Manual, and the design of the HR Policy Manual is tailored for managers, supervisors, and team leaders.

Your company's HR Manual may contain details or procedures you don't wish to share globally, for instance, details of the employee exit process.

While the Employee Handbook should include all policies employees need to know, such as workplace practices, dress codes, how to apply for sick leave or annual leave, etc., they should be clear, direct, and easy to understand.

What are the goals of an HR Manual and an Employee Handbook?

The goal of an Employee Handbook usually includes:

 • Communicating and understanding company policies.

• Setting expectations.

• Reducing potential liabilities.

 • Giving new employees a strong start with your company.

On the other hand, an HR Manual is written for the HR department, leadership, and managers, and its purpose is:

•  Identifying the key processes behind your company's policies, expectations, and business operations.
•  Ensuring your policies are consistently and compliantly implemented across your organization.

For example, your Employee Handbook might outline your company's expectations regarding employee behavior, while your HR Manual would explain how to handle employees who violate behavioral rules. Or if your handbook outlines your employee incentive programs, your HR Manual would precisely cover how to administer these incentives.

An HR Manual can mitigate liability The purpose of your HR Manual is to ensure that the practices regarding your employees in your company are fair and consistent across the board. A well-written HR Manual provides detailed guidance to managers based on compliance requirements.

For example, your company's Employee Handbook might support employees in the office, however, your HR Manual would include information on laws and regulations, relieving managers from the burden of knowing how to interpret and enforce policies, and also ensures consistent application of your policies.

Ultimately, DocSuite HR serves your company by improving access to information, facilitating updates, enhancing HR management effectiveness, and fostering effective communication with employees.

Making the Employee Handbook More User-Friendly with HR Resources

Every employee-related issue, whether it's a request for family leave, remote work, or anything else, varies slightly, so there's another benefit to having an HR resource guide: you don't have to pinpoint every possible variation for each potential problem in your employee handbook.

Instead, you can outline your policies and general scenarios, then refer employees to speak with HR or their manager about their specific situations. This keeps the employee handbook manageable, making it easier for employees to find the information they need.

DocSuite's AI-powered HR System

DocSuite's AI-powered HR system effectively manages both the HR resource guide and the employee handbook by providing means to easily create and manage these guides. DocSuite HR can achieve the following goals:

Document Creation and Organization

DocSuite HR enables easy document creation, facilitating effective management of the content of both the employee handbook and HR resource guide.

Secure Document Sharing

DocSuite's AI-powered HR system provides secure document sharing options, ensuring easy and secure access to vital information for employees and managers.

Collaboration and Effective Updates

DocSuite's AI-powered HR system facilitates collaboration among different departments in managing updates and modifications to the guides efficiently, maintaining links between policies and procedures.

Change Tracking

DocSuite HR offers tools to track changes that occur in the guides, ensuring their alignment with evolving company policies.

Access Management

DocSuite's AI-powered HR system can define access permissions for each user, protecting sensitive content and ensuring that each individual can access information suitable for their responsibilities.

Notifications and Alerts

DocSuite HR can send notifications and alerts about important updates or changes in the guides, making it easier for employees and managers to stay updated.

With an AI-powered HR system, managing and maintaining the employee handbook and HR resource guide becomes an efficient and seamless experience, contributing to enhanced communication and ensuring effective implementation of company policies.

When Does an Organization Need an Employee Handbook and HR Resource Guide?

It's typically believed that the fifty-employee mark is the starting point for implementing an employee handbook and HR resource guide because 50 employees is the threshold for compliance with employment regulations such as:

• Employer Shared Responsibility under the Affordable Care Act (ACA)
• Family and Medical Leave Act (FMLA)
• EEO-1 Reports for Federal Contract Companies

Some states and local governments have their own laws affecting employers with 50 or more employees as well. Therefore, it's essential to have an employee handbook and HR resource guide to ensure compliance in all areas.

However, there's no need to wait for this fifty-employee mark. There are benefits to starting to create your HR resource guide and employee handbook as soon as possible. Creating these documents while launching your company, or when it's small, allows you to be proactive in shaping your company culture.

• Which One to Start with: HR Resource Guide or Employee Handbook?

If your organization has just begun using these documents, it may be most effective to start with your employee handbook and then create the HR resource guide to support your handbook policies.

If you already have an employee handbook, you may want to review and update it before starting to write your HR resource guide.

This approach allows you to focus on your company culture goals first and develop the necessary policies to create and maintain that culture. When documenting these policies and expectations facing employees, you can use them as starting points to build your HR procedures and infrastructure.

• How Often Should You Update the HR Resource Guide and Employee Handbook?

It's important to update your company's policies and procedures whenever new employment laws affecting your business come into effect. Even if there's no new legislation, it's wise to review and update your HR resource guide and employee handbook at least every two years.

These reviews give you the opportunity to ensure your policies – and how they're implemented – remain relevant to your business goals and supportive of your culture. Other motivators for updating the employee handbook and HR resource guide include:

• Changes in senior management

• Office location changes

• New policy implementations

Doc Suite HR's Role in Creation and Review

Doc Suite's AI-powered HR system plays a vital role in creating and reviewing the HR resource guide and employee handbook, organizing content, and facilitating editing and collaboration among team members. It allows users to insert text and graphics in an organized and accessible manner.

Through Doc Suite HR, the team can efficiently update HR policies and the employee handbook, share changes and modifications synchronously, contributing to regular updates of the guides. This system also assists in supervising editing processes and ensuring policy compliance with modern employment laws.

Additionally, Doc Suite HR can record changes resulting from changes in senior management, office expansions, or new policies and programs. With its user-friendly interface, updating the guides becomes an efficient and comprehensive process using Doc Suite.

Remember always to ensure your policies are clear, try to keep the HR resource guide to no more than 30 to 40 pages, if possible. If it's too lengthy, it might not get the attention it deserves.