Effective HR management makes business sense

Human resource management is vital to all successful business operations. Employers should take steps to develop and implement personnel policies. Such policies can create an effective work force for the employer and a more favorable working environment for the employee.

Once such policies are developed, the employer must communicate the policies to the employee. An employee handbook provides an excellent way for employers to communicate their personnel policies and benefit programs to employees.

Although an employee handbook should not be used as a substitute for personal communication, it can be an effective way for an employer to provide an employee with important information.

The handbook should set forth the benefits, policies and disciplinary rules of the company. It should contain information on wages, advancement and performance reviews.

In addition, a comprehensive benefit program should be established. The benefit program may consist of any or all of the following: holidays, vacations, sick leave, allowed absences, insurance (life, accident, disability, medical, dental and vision), pension plans, profit-sharing plans, bonuses, tuition assistance, parking or travel allowances, maternity or paternity leave, child-care facilities and jury duty pay.

The company's policies on sexual harassment and discrimination should also be included, with a specific section which outlines complaint procedures. Once the handbook is developed, it should be updated periodically.

If an employment contract does not exist between the employer and the employee, the employer should explicitly reference the nature of the employment relationship in the handbook.

In Missouri, employment is presumed to be at will unless there is a contract to the contrary. At will employment means that, with few exceptions, employment can be terminated by either party at any time and for any reason. This includes termination with or without cause, and with or without notice.

In recent years, some courts have found that employee handbooks constitute a contract of employment. Therefore, the handbook should be explicit on this point and state whether an employee is an employee at will.

After an employee is hired, an orientation session should take place to discuss company benefits and other personnel policies. A copy of the handbook should be delivered at this time. It is recommended that the employee read and sign the handbook.

The new employee should also have a thorough orientation with his or her supervisor.

Throughout the employee's tenure, the opportunity to establish effective communication channels should be stressed. A company should ensure that all employees are fully informed. Therefore, the handbook could be supplemented with a regularly published company newsletter.

Similarly, a company bulletin board may serve as a means of communication for employees and employers. In addition, meetings with employees, both formal and informal, should be held periodically to explain policies and to listen to their concerns and suggestions.

Finally, experts predict that within the next year there will be too few well-educated and well-trained employees to meet the nation's economic needs. Therefore, employers should plan on spending at least a portion of their payroll on training. Training provides substantial rewards for the employer.

According to the American Society for Training and Development (ASTD), and the Department of Labor (DOL), trained employees' productivity increases justify more than twice over the wage increases that come with training.

For this reason the ASTD and the DOL urge employers to create an institutional environment, use selection and appraisal procedures that assess job-related training needs, use reward systems that provide compensation based on skill, build training-related, performance-based requirements into management, treat training as an investment with the same payoff as research and development, and work together, sharing development and delivery costs of training materials and technologies.

In light of today's changing economy and in light of the increase in recent years in employment litigation, companies should develop, implement and periodically update personnel policies.

(Tina G. Fowler is a practicing attorney with the Springfield law firm of Miller & Sanford. Information and opinions expressed in the "Letter of the Law" column should not be construed as legal advice. For counseling on specific legal situations, please consult an attorney.)

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