What to Include in a Small Business Employee Handbook

If you’re a small business owner, creating an employee handbook might feel like a big-company move. But here’s the truth: a clear, well-structured handbook isn’t just a formality—it’s a critical tool that protects your business, sets expectations, and helps new employees start off on the right foot.

Whether you have 3 employees or 30, your handbook is your go-to document for answering questions, resolving disputes, and reinforcing your company culture.

So what exactly should go into a small business employee handbook? Here’s a breakdown of the key sections every business should include—without overcomplicating the process.

1. Welcome and Company Overview

Start with a brief introduction that welcomes new employees to the team. This is your chance to explain who you are, what your company does, and what you stand for.

Include:

• A short welcome message from ownership or leadership
  
  
• Your company’s mission and values
  
  
• A brief history of the business
  
  
• What makes your culture unique
  
  

This section sets the tone and helps employees feel connected to something bigger than just their job.

2. Employment Basics

This is where you lay out how your working relationship with employees functions. It protects both you and your team by establishing clear policies.

Include:

• Employment classifications (full-time, part-time, exempt, non-exempt)
  
  
• At-will employment statement (where applicable)
  
  
• Equal employment opportunity (EEO) statement
  
  
• Introductory period or probationary period policies
  
  

Make sure this section reflects local and state laws that apply to your business.

3. Timekeeping and Payroll

Here’s where you answer the questions you hear most often: When do I get paid? How do I track my time? What happens if I’m late?

Include:

• Work hours and break policies
  
  
• Time tracking expectations (especially for hourly workers)
  
  
• Pay schedule and method of payment
  
  
• Overtime policies
  
  
• Payroll corrections and reporting errors
  
  

If you’re using a digital timekeeping system like CadenceHCM, explain how employees should use it here.

4. Time Off and Leaves

Every employee wants to understand their options when it comes to taking time away from work. Be clear about what’s offered—and what’s required.

Include:

• Paid time off (PTO), vacation, and sick leave policies
  
  
• Holiday schedule
  
  
• Family and medical leave (FMLA, if applicable)
  
  
• Jury duty, bereavement, and other special leave types
  
  
• Procedures for requesting time off
  
  

This section can reduce confusion, missed requests, and last-minute call-outs.

5. Workplace Expectations and Conduct

You can’t assume people will just “know how things work” at your business. This section outlines your expectations around professional behavior, communication, and the basics of being a good teammate.

Include:

• Code of conduct
  
  
• Attendance and punctuality
  
  
• Dress code (if applicable)
  
  
• Anti-harassment and discrimination policy
  
  
• Use of company property, devices, and internet
  
  

Make sure to keep this section updated with any policies related to remote work or hybrid schedules.

6. Health and Safety

Every workplace needs a clear policy on how to stay safe—whether your team is in an office, out in the field, or working with customers.

Include:

• General safety procedures
  
  
• Reporting accidents or injuries
  
  
• Emergency contact information
  
  
• Any OSHA-required policies based on your industry
  
  

If your employees drive, lift, or use equipment, this section is essential.

7. Technology and Communication

Set expectations around how employees use tools and communicate—especially if you use shared platforms or remote systems.

Include:

• Email and messaging etiquette
  
  
• Cell phone and internet use policies
  
  
• Data privacy and confidentiality
  
  
• Social media use, inside and outside the workplace
  
  

This section helps protect your company’s reputation and reduce unnecessary misunderstandings.

8. Employee Acknowledgment Page

Finish your handbook with an acknowledgment form for the employee to sign. This confirms that they received the handbook, understand it’s their responsibility to read it, and agree to follow the policies.

Keep this signed form in their personnel file.

Final Thoughts: Your Handbook Doesn’t Have to Be Perfect—It Just Has to Be Clear

An employee handbook isn’t about creating rules for the sake of rules. It’s about creating consistency. When employees know what’s expected, they’re more confident, productive, and likely to stay.

Even a simple handbook protects your business from confusion and risk. And the best part? You don’t have to do it alone.

At CadenceHCM, we help small business owners build handbooks that are compliant, practical, and easy to maintain—without drowning in HR jargon.