The employee handbook is a valuable tool for many companies that have grown to a size where they feel they are not getting the correct information across to there employees or potential employees face to face ("Creating an Effective"1). Companies usually feel the need to have an employee handbook when they have grown to a size of over twenty employees ("Creating an Effective"1). As for many company decisions, you should look at the pros and cons associated with that information or decision. When it comes to employee handbooks the determination to have one or what to put in one has to do with the legal ramifications it may create.
There are some obvious and some not so obvious pros to having a handbook. The handbook is a wonderful tool to indoctrinate new employees to the company and its policies. It will inform them of the company policies and what will be expected of them when they start their employment with the company. This ensures a smooth transition for the potential employee's new environment ("Creating an Effective"1). The smother the transition the happier the employee will be. This will allow the employee to absorb more information during the learning and training period.
When a potentially new employee sees that the company has set policies to govern what is expected and guidelines for behavior and policies it will attract a higher caliber of applicants than a company that has no manual in place ("Creating an Effective"1). It also helps to documents an employee's expectations to help with promotions and raises ("Creating an Effective"1). It ensures employees are aware of the employers expectations when it comes to such policies as dress cods, vacation and sick time, etc. ("Written Employment"2).