How to create an employee handbook: step-by-step guide

Creating an employee handbook might seem overwhelming — and if you're doing it the traditional way, it can take weeks. But before we dive into how, let's quickly address why: if you're still on the fence about whether you need one, check out our guide on 7 reasons why you need an employee handbook to understand the business case.

Ready to create yours? There are two paths you can take:

This guide covers the traditional approach step-by-step — which is still valuable to understand even if you choose the modern route. We'll also show you how HandbookHub simplifies each step along the way.

Why create an employee handbook?

Before diving into the "how," let's quickly cover the "why." A good employee handbook:

• Sets clear expectations — Employees know what's expected of them from day one
• Protects your company — Documents policies that can protect you legally
• Saves time — Answers common questions so managers don't have to repeat themselves
• Builds culture — Communicates your values and how things work at your company
• Ensures consistency — Everyone gets the same information and treatment

If you're still wondering whether you need one, check out our guide on what is an employee handbook to understand the full picture.

Before you start: What you'll need (Traditional Way)

Creating an employee handbook the traditional way is a team effort. Here's what you'll need:

• Time commitment — Plan for 2-4 weeks from start to finish
• Team input — Involve HR, legal, and leadership
• Existing policies — Gather any current policies or documents
• Legal requirements — Know your state/federal compliance needs
• Company values — Have clarity on your culture and mission

Now, let's get into the traditional step-by-step process.

Step 1: Define your purpose and audience

The first step is to get clear on why you're creating this handbook and who it's for.

Ask yourself:

• What problems should this handbook solve?
• What questions do new hires always ask?
• What policies cause the most confusion?
• What culture do you want to reinforce?

Your audience matters: Are you writing for remote workers? A mix of full-time and contractors? Office-based teams? Your handbook should reflect the reality of your workforce.

Pro tip: Start by listing the top 10 questions your employees ask most frequently. Your handbook should answer all of them.

Step 2: Gather information and existing policies

Don't start from scratch if you don't have to. Collect everything you already have:

• Employment contracts and offer letters
• Email communications about policies
• Benefits documentation
• Compliance training materials
• Company values statements
• Code of conduct documents

Talk to these people:

• HR team — Current policies and common employee questions
• Legal counsel — Required policies and compliance needs
• Leadership — Company vision and cultural priorities
• Managers — Day-to-day operational needs and pain points
• New hires — What they wish they'd known earlier

Step 3: Choose your structure

Traditional approach: A well-organized handbook is easy to navigate and actually gets used. Here's a proven structure that works for most companies:

For a detailed breakdown of what belongs in each section, see our comprehensive guide on what should be included in an employee handbook.

Keep it modular: Use separate pages or sections for each major topic. This makes updates easier and helps employees find what they need quickly.

Step 4: Draft your content

Now it's time to write. Here's how to approach each section:

Write in plain language

Your handbook should be easy to read — not a legal document. Use:

• Short sentences and paragraphs
• Active voice ("We offer" not "It is offered")
• Common words instead of jargon
• Examples to illustrate policies
• Bullet points for easy scanning

Be specific but flexible

Strike a balance between being clear and leaving room for judgment:

Show your culture

Your handbook is a chance to communicate your company's personality. Look at these employee handbook examples to see how companies like GitLab and Basecamp infuse culture into their handbooks.

Use templates wisely

Templates are a great starting point, but customize them to fit your company. Don't just copy-paste generic policies that don't match your reality.

Step 5: Get legal review

Before you publish, have an employment lawyer review your handbook. They'll help you:

• Ensure compliance with federal and state laws
• Include required disclosures and statements
• Avoid language that creates unintended legal obligations
• Add appropriate disclaimers (at-will employment, etc.)
• Update any outdated or risky policies

Important: Include a disclaimer that the handbook doesn't create a contract and that policies can change. This protects your flexibility.

Step 6: Design and format

A well-designed handbook is more likely to be read and used. Consider these options:

Digital vs. PDF

• Digital (web-based) — Easy to update, searchable, always accessible, can track views
• PDF — Printable, feels official, but goes stale quickly

Our recommendation: Go digital. PDFs get outdated the moment you make a change. A web-based handbook can be updated in seconds and is always current.

Want to understand all the benefits of going digital? Read our complete guide on digital employee handbooks and how to choose the right platform.

Still need PDFs for printing or external sharing? Export a single page or your whole handbook (see PDF export).

Make it scannable

• Use clear headings and subheadings
• Add a table of contents
• Include search functionality (see smart search)
• Use white space generously
• Add visual breaks with icons or images
• Highlight important information

Step 7: Launch and distribute

You've written it — now how do you get people to actually read it?

Launch strategy:

1. Announce it company-wide — Email, all-hands meeting, Slack announcement
2. Make it accessible — Pin the link, add to onboarding, bookmark in tools
3. Train your managers — They should know what's in it and how to reference it
4. Walk through key sections — Host a Q&A session or record a video overview
5. Get acknowledgment — Have employees confirm they've received and read it

Onboarding integration

Your handbook should be part of every new hire's first week:

• Send it before day one so they can review
• Review key sections during onboarding
• Have them sign an acknowledgment form
• Tell them who to contact with questions

Pro tip: Include a dedicated onboarding section in your handbook that outlines expectations for the first 30-60-90 days. This reduces confusion and speeds up time-to-productivity. Learn more in our guide: Employee onboarding handbook: What to include.

Step 8: Keep it updated

A handbook isn't a "set it and forget it" document. Plan to update it regularly:

When to update:

• When laws change (benefits, leave, discrimination, etc.)
• When your company changes (new benefits, locations, policies)
• When you discover gaps or confusion
• At least once per year as a review cycle

Update process:

1. Track needed changes throughout the year
2. Review and approve changes with leadership and legal
3. Update the handbook and note the date
4. Communicate significant changes to all employees
5. Archive old versions for record-keeping

Common mistakes to avoid

Even with the best intentions, it's easy to make mistakes when creating your first handbook. The most common ones include:

• Making it too long and overwhelming
• Using overly legal language nobody understands
• Being too rigid with policies
• Forgetting to update it regularly
• Skipping legal review
• Including content that shouldn't be there

For a detailed breakdown of what to avoid and why, check out our comprehensive guide on common employee handbook mistakes and what not to include.

Traditional vs. Modern: A Quick Comparison

Here's how the traditional approach stacks up against using HandbookHub:

The bottom line: The traditional approach gives you complete control but takes weeks. HandbookHub gets you 90% there in minutes, then you refine the remaining 10% to make it perfect for your company.

Final thoughts

Creating an employee handbook takes time and effort, but it's one of the most valuable documents you'll create for your company. A great handbook:

• Answers questions before they're asked
• Sets clear expectations for everyone
• Protects your company and your employees
• Reinforces your culture and values
• Scales with your company as you grow

The key is to start simple, publish quickly, and iterate as you learn what your team needs. Don't aim for perfection on version one — aim for clarity and usefulness.